[Lightning-dev] eltoo implementation in Bitcoin functional test framework

[Richard Myers]

Hi All,

To better understand how the eltoo update scheme (
https://blockstream.com/eltoo.pdf ) works in practice I implemented eltoo
in the Bitcoin functional test framework. These simulations exercise a
concrete implementation of the eltoo Bitcoin scripts and explore the data
flow between nodes that use eltoo to update their channel state.

My motivation for creating these tests is to have a framework for both
understanding and refining the Bitcoin scripts and message passing protocol
for eltoo. I’d love to hear what people think of my initial implementation.

This simulation uses a fork of Bitcoin with cdecker’s SIGHASH_NOINPUT patch
applied to the signet2 fork fjahr created with patches applied for signet
(kallewoof), taproot (sipa) and anyprevout* (ajtowns).

https://github.com/remyers/signet2/blob/eltoo/test/functional/simulate_eltoo.py

Next steps:

   -

   add bidirectional channel updates
   -

   derive public keys for settle transactions from a pre-shared basepoint


Does anyone know of any other eltoo implementations? I’d love to compare
notes and get the ball rolling on a detailed specification.

Special thanks to the Chaincode Summer Residency and Christian Decker for
their helpful advice and encouragement while I worked on this project.

  -- Richard
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