Post
Topic
Board Development & Technical Discussion
Re: Segwit details? N + 2*numtxids + numvins > N, segwit uses more space than 2MB HF
by
JorgeStolfi
on 21/03/2016, 21:37:59 UTC
So, it is not safe to retain signed but unconfirmed transactions without broadcasting them.
What do you mean by safe?

I mean that, even if your wallet is bug-free and up-to-date, you cannot be sure that your transaction can be confirmed, until it is; and that risk increases with time -- because soft-fork changes to the protocol can render the transaction invalid.

Since those mothballed transactions are not publicly accessible, there is no way for soft-fork proponents to make sure that they will not be invalidated.  In some cases (such as security or bug fixes), they must be invalidated.  Conversely, those who hold such transactions may not have the private keys or other conditions needed to create valid versions of them.

This may be bad news for the Lightning Network.  The latest attempt at the LN design, IIUC, uses long-lived bidirectional channels, and unconfirmed and unbroadcast transactions ("cheques") that may have to be held by the participants for months or years.  It was already pointed out that fee hikes could cause problems, forcing the receiver of a cheque to pay (via CPFP) the fees that the sender was supposed to pay.  But soft-forks could make the cheque completely unspendable.  Then the receiver would lose all the payments that he received through the channel.  If the channels have 100 year timouts, maybe both parties would effectively lose all the coins that they put into the channel.

Even if the risk of one cheque being invalidated is low -- say, 1 chance in 1'000'000 -- it may be unacceptable when there are 100'000 people doing 100 transactions per month in the LN.  Moreover, asingle change can precipitate many such incidents in a short time.

Quote
Hypothetically (not suggesting anybody has suggested this), but wouldnt a softfork (or hardfork) be able to freeze a specific set of addresses? so KYC can be added to bitcoin via softfork and only the majority of hashpower needs to be bought/convinced to conduct this softfork attack.

Of course.  A cooperating mining majority can do anything.