More uses for CTV

More uses for CTV
2022-08-19 17:20 ` Greg Sanders
                   ` (2 more replies)
  
From: James O'Beirne @ 2022-08-19 16:33 UTC (permalink / raw)
  To: Bitcoin Protocol Discussion

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Over the past few months there have been a few potential uses of
OP_CHECKTEMPLATEVERIFY (BIP-119)
(https://github.com/bitcoin/bitcoin/pull/21702) that I've found
interesting.

# Congestion control redux

When I first heard of CTV, a presentation Jeremy did at Chaincode back
in 2018 or '19, he cited congestion control as one of its main use
cases.

The pitch went something like

> When there is a high demand for blockspace it becomes very expensive
> to make transactions. By using OP_CHECKTEMPLATEVERIFY, a large volume
> payment processor may aggregate all their payments into a single O(1)
> transaction for purposes of confirmation. Then, some time later, the
> payments can be expanded out of that UTXO when the demand for
> blockspace is decreased.

(from https://utxos.org/uses/scaling/)

At the time that didn't particularly grab me; the idea of smoothing fee
rates seemed nice but marginal.

But recently, two particular cases have made me reassess the value of
congestion control.

The first stems from the necessity of L2 protocols (payment channels,
vaults, etc.) to, under certain circumstances, settle to the chain in a
timely way in order to prevent abuse of the protocol. If some
unexpected condition (a protocol exploit, large network disconnect, en
masse vault breach, etc.) creates a situation where a large number of
contracts need to settle to the chain in short order, mempools could
fill up and protocol failures could happen for want of mempool/block
space
(
https://github.com/jamesob/mempool.work#failure-one-mempool-to-rule-them-all
).

In such a case, CTV could be used effectively to "compress" settlement
commitments, get them on-chain, and then facilitate later unpacking of
the CTV ouputs into the contract's true end state.

This amounts to `n` contract-control outputs (e.g. a lightning funding
transaction outputs) being spent into a single CTV output, which
commits to the final settlement state. Multiple parties could
trustlessly collaborate to settle into a single CTV output using
SIGHASH_ALL | ANYONECANPAY. This requires a level of interaction
similar to coinjoins.

Put simply, CTV allows deferring the chainspace required for the final
settlement outputs, but still immediately requires space for the
inputs. This might sound like a temporary reprieve from half-ish of the
space required to settle, but in many (most?) cases the outputs require
substantially more space than the inputs, given that often we're
settling a single UTXO into multiple payouts per party. A 2, 3, or
4-fold increase (depending on the contracting pattern) in capacity
isn't a silver bullet, but it could ameliorate the damage of unexpected
settlement "tidal waves."

Conceptually, CTV is the most parsimonious way to do such a scheme,
since you can't really get smaller than a SHA256 commitment, and that's
essentially all CTV is.

The second congestion control case is related to a recent post Bram
made about stability under a no-block-subsidy regime. He posted

> If transaction fees came in at an even rate over time all at the
> exact same level then they work fine for security, acting similarly
> to fixed block rewards. Unfortunately that isn't how it works in the
> real world. There's a very well established day/night cycle with fees
> going to zero overnight and even longer gaps on weekends and
> holidays. If in the future Bitcoin is entirely dependent on fees for
> security (scheduled very strongly) and this pattern keeps up
> (overwhelmingly likely) then this is going to become a serious
> problem.

(from
https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2022-July/020702.html
)

Ryan Grant points out that CTV's congestion control use could help to
smooth fees, creating a less spiky incentive to mine
(
https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2022-July/020702.html
).

Admittedly the original concern is speculative and a ways off from now,
as others in the thread pointed out. But having CTV-based fee smoothing
as an option certainly doesn't seem like a bad thing.


# Atomic mining pool payouts

Laurentia is a mining pool design that pays participants out directly
from the coinbase of found blocks.

> Block solve reward is distributed directly from the block to each
> user, meaning each user gets a 'mined' transaction directly into
> their wallet as soon as the block is solved so there is no wait to
> get paid and no pool wallet storing user's rewards.

(from
https://laurentiapool.org/wp-content/uploads/2020/05/laurentiapool_whitepaper.pdf
)

I'm not a mining expert and so I can't speak to the efficacy of the
paper as a whole, but direct-from-coinbase payouts seem like a
desirable feature which avoids some trust in pools. One limitation is
the size of the coinbase outputs owed to constituent miners; this
limits the number of participants in the pool.

If the payout was instead a single OP_CTV output, an arbitrary number
of pool participants could be paid out "atomically" within a single
coinbase.

---

CTV both in concept and implementation is very simple, and I think it
is likely to continue to yield potential applications.
"Settlement compression" seems like a useful thing, especially in light
of a possible increase in L2 usage, and CTV seems like the simplest
means to enable it.

Interestingly, an analogue for this pattern going the other direction
is possible, e.g. non-interactive channel openings
(https://utxos.org/uses/non-interactive-channels/), which would allow
e.g. opening a lightning channel with a merchant who doesn't want to
have their spending keys constantly accessible from a point-of-sale,
but can still parse/verify CTV commitments.

Regards,
James

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 permalink raw reply	[|nested]
2022-08-19 17:20 ` 
                   ` 
  
From: James O'Beirne @ 2022-08-19 16:33 UTC (permalink / raw)
  To: Bitcoin Protocol Discussion

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Over the past few months there have been a few potential uses of
OP_CHECKTEMPLATEVERIFY (BIP-119)
(https://github.com/bitcoin/bitcoin/pull/21702) that I've found
interesting.

# Congestion control redux

When I first heard of CTV, a presentation Jeremy did at Chaincode back
in 2018 or '19, he cited congestion control as one of its main use
cases.

The pitch went something like

> When there is a high demand for blockspace it becomes very expensive
> to make transactions. By using OP_CHECKTEMPLATEVERIFY, a large volume
> payment processor may aggregate all their payments into a single O(1)
> transaction for purposes of confirmation. Then, some time later, the
> payments can be expanded out of that UTXO when the demand for
> blockspace is decreased.

(from https://utxos.org/uses/scaling/)

At the time that didn't particularly grab me; the idea of smoothing fee
rates seemed nice but marginal.

But recently, two particular cases have made me reassess the value of
congestion control.

The first stems from the necessity of L2 protocols (payment channels,
vaults, etc.) to, under certain circumstances, settle to the chain in a
timely way in order to prevent abuse of the protocol. If some
unexpected condition (a protocol exploit, large network disconnect, en
masse vault breach, etc.) creates a situation where a large number of
contracts need to settle to the chain in short order, mempools could
fill up and protocol failures could happen for want of mempool/block
space
(
https://github.com/jamesob/mempool.work#failure-one-mempool-to-rule-them-all
).

In such a case, CTV could be used effectively to "compress" settlement
commitments, get them on-chain, and then facilitate later unpacking of
the CTV ouputs into the contract's true end state.

This amounts to `n` contract-control outputs (e.g. a lightning funding
transaction outputs) being spent into a single CTV output, which
commits to the final settlement state. Multiple parties could
trustlessly collaborate to settle into a single CTV output using
SIGHASH_ALL | ANYONECANPAY. This requires a level of interaction
similar to coinjoins.

Put simply, CTV allows deferring the chainspace required for the final
settlement outputs, but still immediately requires space for the
inputs. This might sound like a temporary reprieve from half-ish of the
space required to settle, but in many (most?) cases the outputs require
substantially more space than the inputs, given that often we're
settling a single UTXO into multiple payouts per party. A 2, 3, or
4-fold increase (depending on the contracting pattern) in capacity
isn't a silver bullet, but it could ameliorate the damage of unexpected
settlement "tidal waves."

Conceptually, CTV is the most parsimonious way to do such a scheme,
since you can't really get smaller than a SHA256 commitment, and that's
essentially all CTV is.

The second congestion control case is related to a recent post Bram
made about stability under a no-block-subsidy regime. He posted

> If transaction fees came in at an even rate over time all at the
> exact same level then they work fine for security, acting similarly
> to fixed block rewards. Unfortunately that isn't how it works in the
> real world. There's a very well established day/night cycle with fees
> going to zero overnight and even longer gaps on weekends and
> holidays. If in the future Bitcoin is entirely dependent on fees for
> security (scheduled very strongly) and this pattern keeps up
> (overwhelmingly likely) then this is going to become a serious
> problem.

(from
https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2022-July/020702.html
)

Ryan Grant points out that CTV's congestion control use could help to
smooth fees, creating a less spiky incentive to mine
(
https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2022-July/020702.html
).

Admittedly the original concern is speculative and a ways off from now,
as others in the thread pointed out. But having CTV-based fee smoothing
as an option certainly doesn't seem like a bad thing.


# Atomic mining pool payouts

Laurentia is a mining pool design that pays participants out directly
from the coinbase of found blocks.

> Block solve reward is distributed directly from the block to each
> user, meaning each user gets a 'mined' transaction directly into
> their wallet as soon as the block is solved so there is no wait to
> get paid and no pool wallet storing user's rewards.

(from
https://laurentiapool.org/wp-content/uploads/2020/05/laurentiapool_whitepaper.pdf
)

I'm not a mining expert and so I can't speak to the efficacy of the
paper as a whole, but direct-from-coinbase payouts seem like a
desirable feature which avoids some trust in pools. One limitation is
the size of the coinbase outputs owed to constituent miners; this
limits the number of participants in the pool.

If the payout was instead a single OP_CTV output, an arbitrary number
of pool participants could be paid out "atomically" within a single
coinbase.

---

CTV both in concept and implementation is very simple, and I think it
is likely to continue to yield potential applications.
"Settlement compression" seems like a useful thing, especially in light
of a possible increase in L2 usage, and CTV seems like the simplest
means to enable it.

Interestingly, an analogue for this pattern going the other direction
is possible, e.g. non-interactive channel openings
(https://utxos.org/uses/non-interactive-channels/), which would allow
e.g. opening a lightning channel with a merchant who doesn't want to
have their spending keys constantly accessible from a point-of-sale,
but can still parse/verify CTV commitments.

Regards,
James

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 permalink raw reply	[|nested]
2022-08-19 16:33 [bitcoin-dev] More uses for CTV James O'Beirne
  2022-08-19 17:20 ` Greg Sanders

  2022-08-19 21:01   ` Jeremy Rubin
  2022-09-19  1:22 ` Antoine Riard
  
From: David A. Harding @ 2022-08-19 18:53 UTC (permalink / raw)
  To: James O'Beirne, Bitcoin Protocol Discussion

On 2022-08-19 06:33, James O'Beirne via bitcoin-dev wrote:
> Multiple parties could
> trustlessly collaborate to settle into a single CTV output using
> SIGHASH_ALL | ANYONECANPAY. This requires a level of interaction
> similar to coinjoins.

Just to make sure I understand, is the reason for SH_ALL|SH_ACP so that 
any of the parties can subsequently RBF fee bump the transaction?

> Conceptually, CTV is the most parsimonious way to do such a scheme,
> since you can't really get smaller than a SHA256 commitment

What's the advantage of CTV here compared to presigned transactions?  If 
multiple parties need to interact to cooperatively sign a transaction, 
no significant overhead is added by having them simultaneously sign a 
second transaction that spends from the output of the first transaction. 
  Presigned transactions actually have two small benefits I can think of:

1. The payment from the first transaction (containing the spends from 
the channel setup transactions) can be sent to a P2WPKH output, which is 
actually smaller than a SHA256 commitment.  Though this probably does 
require an extra round of communication for commit-and-reveal to prevent 
a collision attack on the P2WPKH address.[1]

2. Having the first transaction pay a either a P2WPKH or bech32m output 
and the second transaction spend from that UTXO may blend in better with 
other transactions, enhancing privacy.  This advantage probably isn't 
compatible with SH_ALL|SH_ACP, though, and it would require other 
privacy upgrades to LN.

> direct-from-coinbase payouts seem like a
> desirable feature which avoids some trust in pools.
> [...]
> If the payout was instead a single OP_CTV output, an arbitrary number
> of pool participants could be paid out "atomically" within a single
> coinbase.  One limitation is
> the size of the coinbase outputs owed to constituent miners; this
> limits the number of participants in the pool.

I'm confused by this.  What is the size limitation on coinbase outputs, 
how does it limit the number of participants in a pool, and how does CTV 
fix that?

Thanks,

-Dave

[1] 
https://bitcoinops.org/en/newsletters/2020/06/24/#reminder-about-collision-attack-risks-on-two-party-ecdsa


 permalink raw reply	[|nested]
2022-08-19 18:53 ` David A. Harding

  
From: Jeremy Rubin @ 2022-08-19 21:01 UTC (permalink / raw)
  To: David A. Harding, Bitcoin Protocol Discussion

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Presigned transactions have to use a N-of-N (2-2 for ln, more for pools)
multisignature which is computed over the network whereas in-script
commitments can be done 1 key that is a non-secret point (e.g., just the
generator I think works).

For large protocol trees (e.g., of size N) the savings can be substantial!
It also reduces the amount of state that needs to be stored since the
in-script sigs can be deterministic.

Rene has some nice work demonstrating that latency in generating state
transitions has a very substantial cost to the efficiency of routing, maybe
he can chime in further.


You can also do a "back-filling" where you get the best of both, by (after
you commit to the quick to generate in-script version) lazily backfilling
with an equivalent p2wpkh version. If you have a channel, when you are in
"burst mode", you can cancel the longer to generate p2wpkh version when
newer states come in. (data hazard/ bypass).


With respect to mining pools and size constraints,
https://rubin.io/bitcoin/2021/12/12/advent-15/ shows how paying into
batches of channels can be used to trustlessly compress payouts without
custodial relationship.


--
@JeremyRubin <https://twitter.com/JeremyRubin>

On Fri, Aug 19, 2022 at 11:53 AM David A. Harding via bitcoin-dev <
bitcoin-dev@lists•linuxfoundation.org> wrote:

> On 2022-08-19 06:33, James O'Beirne via bitcoin-dev wrote:
> > Multiple parties could
> > trustlessly collaborate to settle into a single CTV output using
> > SIGHASH_ALL | ANYONECANPAY. This requires a level of interaction
> > similar to coinjoins.
>
> Just to make sure I understand, is the reason for SH_ALL|SH_ACP so that
> any of the parties can subsequently RBF fee bump the transaction?
>
> > Conceptually, CTV is the most parsimonious way to do such a scheme,
> > since you can't really get smaller than a SHA256 commitment
>
> What's the advantage of CTV here compared to presigned transactions?  If
> multiple parties need to interact to cooperatively sign a transaction,
> no significant overhead is added by having them simultaneously sign a
> second transaction that spends from the output of the first transaction.
>   Presigned transactions actually have two small benefits I can think of:
>
> 1. The payment from the first transaction (containing the spends from
> the channel setup transactions) can be sent to a P2WPKH output, which is
> actually smaller than a SHA256 commitment.  Though this probably does
> require an extra round of communication for commit-and-reveal to prevent
> a collision attack on the P2WPKH address.[1]
>
> 2. Having the first transaction pay a either a P2WPKH or bech32m output
> and the second transaction spend from that UTXO may blend in better with
> other transactions, enhancing privacy.  This advantage probably isn't
> compatible with SH_ALL|SH_ACP, though, and it would require other
> privacy upgrades to LN.
>
> > direct-from-coinbase payouts seem like a
> > desirable feature which avoids some trust in pools.
> > [...]
> > If the payout was instead a single OP_CTV output, an arbitrary number
> > of pool participants could be paid out "atomically" within a single
> > coinbase.  One limitation is
> > the size of the coinbase outputs owed to constituent miners; this
> > limits the number of participants in the pool.
>
> I'm confused by this.  What is the size limitation on coinbase outputs,
> how does it limit the number of participants in a pool, and how does CTV
> fix that?
>
> Thanks,
>
> -Dave
>
> [1]
>
> https://bitcoinops.org/en/newsletters/2020/06/24/#reminder-about-collision-attack-risks-on-two-party-ecdsa
> _______________________________________________
> bitcoin-dev mailing list
> bitcoin-dev@lists•linuxfoundation.org
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
>

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 permalink raw reply	[|nested]
2022-08-19 17:20 ` Greg Sanders

  
From: ZmnSCPxj @ 2022-08-20  3:03 UTC (permalink / raw)
  To: Greg Sanders, Bitcoin Protocol Discussion


Good morning Greg,


> Hi James,
> Could you elaborate on a L2 contract where speedy
> settlement of the "first part" can be done, while having the rest
> take their time? I'm more thinking about time-out based protocols.
> 
> Naturally my mind drifts to LN, where getting the proper commitment
> transaction confirmed in a timely fashion is required to get the proper
> balances back. The one hitch is that for HTLCs you still need speedy
> resolution otherwise theft can occur. And given today's "layered
> commitment" style transaction where HTLCs are decoupled from
> the balance output timeouts, I'm not sure this can save much.

As I understand it, layered commitments can be modified to use `OP_CTV`, which would be slightly smaller (need only to reveal a 32-byte `OP_CTV` hash on the witness instead of a 64-byte Taproot signature, or 73-byte classical pre-Taproot ECDSA signature), and is in fact precisely an example of the speedy settlement style.

> CTV style commitments have popped up in a couple places in my
> work on eltoo(emulated via APO sig-in-script), but mostly in the
> context of reducing interactivity in protocols, not in byte savings per se.

In many offchain cases, all channel participants would agree to some pre-determined set of UTXOs, which would be implemented as a transaction spending some single UTXO and outputting the pre-determined set of UTXOs.

The single UTXO can be an n-of-n of all participants, so that all agree by contributing their signatures:

* Assuming Taproot, the output address itself is 33 bytes (x4 weight).
* The n-of-n multisignature is 64 witness bytes (x1 weight). 

Alternatly the single UTXO can be a P2WSH that reveals an `OP_CTV`:

* The P2WSH is 33 bytes (x4 weight) --- no savings here.
* The revelation of the `<hash> OP_CTV` is 33 witness bytes (x1 weight).

Thus, as I understand it, `OP_CTV` can (almost?) always translate to a small weight reduction for such "everyone agrees to this set of UTXOs" for all offchain protocols that would require it.


Regards,
ZmnSCPxj


 permalink raw reply	[|nested]
2022-08-19 16:33 [bitcoin-dev] More uses for CTV James O'Beirne
  2022-08-19 17:20 ` Greg Sanders
  2022-08-19 18:53 ` David A. Harding

  
From: Antoine Riard @ 2022-09-19  1:22 UTC (permalink / raw)
  To: James O'Beirne, Bitcoin Protocol Discussion

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Hi James,

Thanks to bringing to awareness the atomic mining pool thing, it's
interesting.

> I'm not a mining expert and so I can't speak to the efficacy of the
> paper as a whole, but direct-from-coinbase payouts seem like a
> desirable feature which avoids some trust in pools. One limitation is
> the size of the coinbase outputs owed to constituent miners; this
> limits the number of participants in the pool.

I'm neither a mining expert, but I wonder if there is not some weird
dependency here. The coinbase output scriptpubkey being part of the
header's merkle root commitment, the CTV hash being part of the
scriptpubkey and the payout outputs being part of the CTV hash, everytime
the payout outputs as re-evaluated in function of the last work share
submitted, as Laurentia is proposing, the whole payout transaction must be
updated, then the CTV hash, then the merkle root commitment, leading all
the mining devices to re-fetch a header from the job negotiator (in Stratum
V2 parlance), I think ? I don't know the average shares submission
frequency for a local pool of size 100 as targeted by Laurentia though the
latency hit might downgrade the worthiness of this CTV-based atomic mining
pool payouts design...

Beyond, I'm not sure about the trust removal statement of this design, as
the job negotiator operator, sounds to always have malleability to select
the coinbase output scriptpubkey, therefore selecting any CTV hash
assigning all the reward to itself, at the detriment of other mining pool
participant. I believe this is not a downside of CTV usage itself, but the
fact that the coinbase output scriptpubkey is ultimately signed by the
proof-of-work itself.

About compactness, I wonder if an atomic payment pool payouts design
favoring the payouts settlement directly over Lightning channels wouldn't
offer a smaller on-chain footprint. E.g, maybe the mining pool operator
could send a long-term PTLC to each participant covering the period during
which a block has odds to be mined by the pool. The PTLCs amounts should be
stable once the block template is agreed on. The coinbase output is locked
with some scriptless script point. When it is spent by the mining operator,
the PTLCs could be fetched by the participant. If the mining operator
doesn't spend before time lock expiration, there could be some on-chain
fan-out transaction kicking-out. That type of scheme would allow you to
save on-chain fees and not to leak the mining pool hashrate distribution.
However, I believe it is more complex to make it fit with the SPLNS
"real-time"  calculation as it sounds to be proposed by the paper. Just a
strawman proposal, if relevant, deserves more thinking.

The paper would deserve to have a fully fleshed-out "coinbase generation"
scheme as the description is a bit loose, imo, like:

"Block solve reward is distributed directly from the block to each user,
meaning each user gets
a 'mined' transaction directly into their wallet as soon as the block is
solved so there is no wait
to get paid and no pool wallet storing user's rewards"

Anyway, left a scratch of further scheme analysis there:
https://github.com/ariard/bitcoin-contracting-primitives-wg/pull/8

Best,
Antoine

Le ven. 19 août 2022 à 12:33, James O'Beirne via bitcoin-dev <
bitcoin-dev@lists•linuxfoundation.org> a écrit :

> Over the past few months there have been a few potential uses of
> OP_CHECKTEMPLATEVERIFY (BIP-119)
> (https://github.com/bitcoin/bitcoin/pull/21702) that I've found
> interesting.
>
> # Congestion control redux
>
> When I first heard of CTV, a presentation Jeremy did at Chaincode back
> in 2018 or '19, he cited congestion control as one of its main use
> cases.
>
> The pitch went something like
>
> > When there is a high demand for blockspace it becomes very expensive
> > to make transactions. By using OP_CHECKTEMPLATEVERIFY, a large volume
> > payment processor may aggregate all their payments into a single O(1)
> > transaction for purposes of confirmation. Then, some time later, the
> > payments can be expanded out of that UTXO when the demand for
> > blockspace is decreased.
>
> (from https://utxos.org/uses/scaling/)
>
> At the time that didn't particularly grab me; the idea of smoothing fee
> rates seemed nice but marginal.
>
> But recently, two particular cases have made me reassess the value of
> congestion control.
>
> The first stems from the necessity of L2 protocols (payment channels,
> vaults, etc.) to, under certain circumstances, settle to the chain in a
> timely way in order to prevent abuse of the protocol. If some
> unexpected condition (a protocol exploit, large network disconnect, en
> masse vault breach, etc.) creates a situation where a large number of
> contracts need to settle to the chain in short order, mempools could
> fill up and protocol failures could happen for want of mempool/block
> space
> (
> https://github.com/jamesob/mempool.work#failure-one-mempool-to-rule-them-all
> ).
>
> In such a case, CTV could be used effectively to "compress" settlement
> commitments, get them on-chain, and then facilitate later unpacking of
> the CTV ouputs into the contract's true end state.
>
> This amounts to `n` contract-control outputs (e.g. a lightning funding
> transaction outputs) being spent into a single CTV output, which
> commits to the final settlement state. Multiple parties could
> trustlessly collaborate to settle into a single CTV output using
> SIGHASH_ALL | ANYONECANPAY. This requires a level of interaction
> similar to coinjoins.
>
> Put simply, CTV allows deferring the chainspace required for the final
> settlement outputs, but still immediately requires space for the
> inputs. This might sound like a temporary reprieve from half-ish of the
> space required to settle, but in many (most?) cases the outputs require
> substantially more space than the inputs, given that often we're
> settling a single UTXO into multiple payouts per party. A 2, 3, or
> 4-fold increase (depending on the contracting pattern) in capacity
> isn't a silver bullet, but it could ameliorate the damage of unexpected
> settlement "tidal waves."
>
> Conceptually, CTV is the most parsimonious way to do such a scheme,
> since you can't really get smaller than a SHA256 commitment, and that's
> essentially all CTV is.
>
> The second congestion control case is related to a recent post Bram
> made about stability under a no-block-subsidy regime. He posted
>
> > If transaction fees came in at an even rate over time all at the
> > exact same level then they work fine for security, acting similarly
> > to fixed block rewards. Unfortunately that isn't how it works in the
> > real world. There's a very well established day/night cycle with fees
> > going to zero overnight and even longer gaps on weekends and
> > holidays. If in the future Bitcoin is entirely dependent on fees for
> > security (scheduled very strongly) and this pattern keeps up
> > (overwhelmingly likely) then this is going to become a serious
> > problem.
>
> (from
>
> https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2022-July/020702.html
> )
>
> Ryan Grant points out that CTV's congestion control use could help to
> smooth fees, creating a less spiky incentive to mine
> (
> https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2022-July/020702.html
> ).
>
> Admittedly the original concern is speculative and a ways off from now,
> as others in the thread pointed out. But having CTV-based fee smoothing
> as an option certainly doesn't seem like a bad thing.
>
>
> # Atomic mining pool payouts
>
> Laurentia is a mining pool design that pays participants out directly
> from the coinbase of found blocks.
>
> > Block solve reward is distributed directly from the block to each
> > user, meaning each user gets a 'mined' transaction directly into
> > their wallet as soon as the block is solved so there is no wait to
> > get paid and no pool wallet storing user's rewards.
>
> (from
>
> https://laurentiapool.org/wp-content/uploads/2020/05/laurentiapool_whitepaper.pdf
> )
>
> I'm not a mining expert and so I can't speak to the efficacy of the
> paper as a whole, but direct-from-coinbase payouts seem like a
> desirable feature which avoids some trust in pools. One limitation is
> the size of the coinbase outputs owed to constituent miners; this
> limits the number of participants in the pool.
>
> If the payout was instead a single OP_CTV output, an arbitrary number
> of pool participants could be paid out "atomically" within a single
> coinbase.
>
> ---
>
> CTV both in concept and implementation is very simple, and I think it
> is likely to continue to yield potential applications.
> "Settlement compression" seems like a useful thing, especially in light
> of a possible increase in L2 usage, and CTV seems like the simplest
> means to enable it.
>
> Interestingly, an analogue for this pattern going the other direction
> is possible, e.g. non-interactive channel openings
> (https://utxos.org/uses/non-interactive-channels/), which would allow
> e.g. opening a lightning channel with a merchant who doesn't want to
> have their spending keys constantly accessible from a point-of-sale,
> but can still parse/verify CTV commitments.
>
> Regards,
> James
> _______________________________________________
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> bitcoin-dev@lists•linuxfoundation.org
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
>

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