[bitcoin-dev] Proof-of-Stake Bitcoin Sidechains

[Dr Adam Back]

Brands credentials use this single show, and multiple show
credentials. It's based on the representation problem which is the
generalisation to multiple bases where Schnorr is one base, Pedersen
Commitments are two bases, Representation problem is n>2 bases.

The method used would work for Schnorr or DSA and there was some 2013
era #bitcoin-wizards discussion on this topic, where if you spend
twice miners can take your money, as a strong way to "discourage"
address reuse.  One side effect though is you force ACID log oriented
storage on the wallet, and many wallets are low power devices or even
a few in VMs that could be snapshotted or rolled back. Similar risk
model to the lightning penalty for accidentally doing a hostile close
in the current model (where ELTOO has non-penalty based close).

You would have to be careful to not use related nonces (k=nonce
committed to by R=kG), as Schnorr and DSA are highly vulnerable to
that, like simultaneous equation two samples solvable.

What the Brands n-show credential looks like is a precommitment like
single show the address becomes A=H(R,Q) where Q is the public key,
and n-show becomes A=H(R1,...,Rn,Q).

Signing becomes providing i,Ri,Q in the Script to satisfy a
ScriptPubKey that includes the three. You would need to in practice
store the Ri values in a merkle tree probably so that you don't need
to provide n inputs, but log(n) or some other structuring.

Anyway main point being the fragility to related nonces, and cost of
ACID log structured storage levels of reliability in wallets.

Adam

On Tue, 22 Jan 2019 at 15:14, ZmnSCPxj via bitcoin-dev
<bitcoin-dev at lists.linuxfoundation.org> wrote:
>
> Good Morning Matt,
>
> > ### ZmnSCPxj,
> >
> > I'm intrigued by this mechanism of using fixed R values to prevent multiple signatures, but how do we derive the R values in a way where they are
> unique for each blockheight but still can be used to create signatures or verify?
>
> One possibility is to derive `R` using standard hierarchical derivation.
> Then require that the staking pubkey be revealed to the sidechain network as actually being `staking_pubkey = P + hash(P || parent_R) * G` (possibly with some trivial protection against Taproot).
> To sign for a blockheight `h`, you must use your public key `P` and the specific `R` we get from hierarchical derivation from `parent_R` and the blockheight as index.
>
>
>
> Regards,
> ZmnSCPxj
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