Post
Topic
Board Development & Technical Discussion
Merits 5 from 3 users
Re: Taproot proposal
by
figmentofmyass
on 28/01/2020, 22:29:39 UTC
⭐ Merited by fillippone (2) ,Welsh (2) ,ETFbitcoin (1)
obviously, schnorr signatures are on deck. that'll allow for cross-input aggregation to make coinjoins indistinguishable from regular transactions. that's a pretty massive development given that exchanges are beginning to target coinjoin users. estimating based on segwit's activation timeline, that could happen by early 2021 or maybe even the end of this year, optimistically.

but "useless"? that's quite a strong word. Lips sealed

confidential transactions (CT) to obfuscate transaction amounts seems like an attractive next step. but my understanding is it requires extension blocks or a hard fork. so.....probably not gonna be implemented at the consensus layer. there's always sidechains though. liquid (blockstream's sidechain) supports CT for example.

These things have to run at layer 0 to get any traction imo.

taproot/schnorr will run at layer 0. CT could in theory too but there are strong reasons it won't (bloat and lack of support for consensus change).

We should have had better fungibility since day 1. Things should be mixed by default, what should be optional is making a clear A to B transaction. If we are going to have privacy, we want it to be as close to default state as possible.

taproot offers the beginnings of that. amounts and output linkability are still unaddressed at this time, but basically everything under the hood of a transaction can be hidden. cross-input aggregation (once implemented) will further provide strong fee incentives to drive users towards schnorr-based coinjoin and/or adaptor signature-based mixing transactions. wallets could offer these as automatic/default mechanisms. if most of the network is using taproot, these are pretty huge privacy gains for everyone.

unfortunately, we can't approach this issue as if it were day 1. as gmaxwell pointed out, there is uncertainty around being able to deploy even mundane consensus changes---let alone ones that are actually contentious.