Re: [bitcoin-dev] HTLC output aggregation as a mitigation for tx recycling, jamming, and on-chain efficiency (covenants)

2023-12-21 Thread Johan Torås Halseth via bitcoin-dev
> Bob can craft a HTLC-preimage spend of the single offered output spending one > of 0.1 BTC HTLC payout (and revealing its preimage) while burning all the > value as fee. This replaces out Alice's honest HTLC-timeout out of network > mempools, are they're concurrent spend. Bob can repeat this t

Re: [bitcoin-dev] HTLC output aggregation as a mitigation for tx recycling, jamming, and on-chain efficiency (covenants)

2023-12-17 Thread Antoine Riard via bitcoin-dev
Hi Johan, > Is this a concern though, if we assume there's no revoked state that > can be broadcast (Eltoo)? Could you share an example of how this would > be played out by an attacker? Sure, let's assume no revoked state can be broadcast (Eltoo). My understanding of the new covenant mechanism i

Re: [bitcoin-dev] HTLC output aggregation as a mitigation for tx recycling, jamming, and on-chain efficiency (covenants)

2023-12-11 Thread Johan Torås Halseth via bitcoin-dev
Hi, Antoine. > The attack works on legacy channels if the holder (or local) commitment > transaction confirms first, the second-stage HTLC claim transaction is fully > malleable by the counterparty. Yes, correct. Thanks for pointing that out! > I think one of the weaknesses of this approach is

Re: [bitcoin-dev] HTLC output aggregation as a mitigation for tx recycling, jamming, and on-chain efficiency (covenants)

2023-11-21 Thread Antoine Riard via bitcoin-dev
Hi Johan, Few comments. ## Transaction recycling The transaction recycling attack is made possible by the change made to HTLC second level transactions for the anchor channel type[8]; making it possible to add fees to the transaction by adding inputs without violating the signature. For the legac

[bitcoin-dev] HTLC output aggregation as a mitigation for tx recycling, jamming, and on-chain efficiency (covenants)

2023-10-26 Thread Johan Torås Halseth via bitcoin-dev
Hi all, After the transaction recycling has spurred some discussion the last week or so, I figured it could be worth sharing some research I’ve done into HTLC output aggregation, as it could be relevant for how to avoid this problem in a future channel type. TLDR; With the right covenant we can c