delvingbitcoin
Can Game Theory Secure Scaling?
Posted on: April 16, 2024 19:50 UTC
The discussion revolves around the nuanced capabilities and limitations inherent in managing Unspent Transaction Outputs (UTXOs) within blockchain protocols, specifically highlighting Alice's theoretical ability to maneuver UTXOs on-chain given comprehensive knowledge of the conditions attached to them.
Despite the potential leverage this knowledge provides, it's pointed out that such actions may not always be advantageous for the parties involved. An interesting point raised is the possibility of concealing an N-of-N multisig arrangement behind a singular public key, which could significantly simplify the transaction process without necessitating any preparatory steps on the blockchain itself. This concept introduces the idea of utilizing nodes as a form of global watchtower, offering oversight without requiring broad dissemination of information, thereby addressing concerns about unwanted data broadcasting.
Further exploration into enhancing the usability and accessibility of non-custodial lightning networks reveals two pivotal approaches. The first entails simplifying the process for users to deploy agents that operate autonomously, aiding in the management of transactions and security protocols. This approach is exemplified by products like Start9, which aim to streamline user interaction with blockchain networks. The second strategy focuses on developing protocols that reduce or eliminate the need for continuous online presence for transaction verification and breach response. Although these methods present certain drawbacks, particularly in the "last mile" of transaction execution when compared to traditional Lightning Networks (LN), they are not primarily concerned with optimizing these endpoints. Instead, the overarching goal is to broaden the reach of sovereign users within the blockchain ecosystem, thereby democratizing access while minimizing the impact on the underlying time-chain infrastructure. This ambition reflects a concerted effort to enhance network inclusivity without compromising the integrity of the blockchain.