Bitcoin Optech Newsletter #24


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How Does Bitcoin Make Money? Many of the smaller projects in the crypto space – and a few of the largest ones – raised money from private investors around the world in the crypto equivalent of a crowdfunding campaign. While the wild volatility might produce great headlines, it hardly makes Bitcoin the best choice for novice investors or people looking for a stable store of value. While we cannot guarantee to exclude them all, we have a vetting process that each coin goes through before it is listed on the site. So, CoinCorner makes the process easy by offering a fast sign up process that is accompanied by a range of instant payment methods. Mark Erhardt: Okay. So, so far when we were processing a PSBT in the GUI, we were not indicating which addresses were yours. If the user enters a passphrase containing null characters which fails to decrypt an existing wallet, indicating they may have set a passphrase under the old behavior, they’ll be provided with instructions for a workaround. This makes it especially difficult if you’re creating a change output that belongs to you, because the change output, of course, goes to a freshly generated address, and if you’re just seeing money go to a freshly generated address, you do not know whether that’s your address or whether somebody may have tampered with your PSBT and is sending the remainder of your transaction to their own address.

1: partial spend avoidance is completely disabled to optimize for faster fee calculations, which may be useful for very large wallets with many UTXOs. ● LN fee ratecards: Lisa Neigut posted to the Lightning-Dev mailing list a proposal for https://Bitcoinxxo.com fee ratecards that would allow a node to advertise four tiered rates for forwarding fees. ● Reputation credentials proposal to mitigate LN jamming attacks: Antoine Riard posted to the Lightning-Dev mailing list a proposal for a new credential-based reputation system to help prevent attackers from temporarily blocking payment (HTLC) slots or value, preventing honest users from being able to send payments-a problem called channel jamming attacks. Even if the new feerate isn’t entirely safe, its higher value means it’s safer than what the node had before, so it’s better to accept it than try to close the channel with its existing lower feerate. A limit order is an order with a specific “limit price,” which means that Bincance will only execute it once the market price reaches the price you set or better. In turn, this also means that you don’t need to have a grasp of technical analysis – which is the art of reading charts.

Mark Erhardt: I think that there is some follow-up work for this release that is coming out soon, but I don’t know exact details. Mark Erhardt: I believe you are getting that right. Also included are our regular sections with summaries of popular questions and answers from the Bitcoin Stack Exchange, announcements of new releases and release candidates, and descriptions of notable changes to popular Bitcoin infrastructure software. Also included are our regular sections with announcements of new software releases and release candidates and summaries of notable changes to popular Bitcoin infrastructure software. Developers plan to re-enable it shortly after the release. Always check the specific requirements of the exchange you plan to use. But they have a coordination problem, which is they have to be able to communicate with each other to develop the battle plan and to decide when to launch the attack. So, I guess it would be nice if it worked, but I see an attack vector there too. So, you could sort of ask that people route through specific channels because that one is especially lopsided and it would move the liquidity more in the direction that would balance out the channel, which would be a good thing.

Mike Schmidt: The person asking this question was also asking about seed security and was maybe mixing up this 256-bit ECDSA versus 128 versus like the security of a seed, which sometimes can be 512. So, there’s some details in the answer on the Stack Exchange there. Mike Schmidt: Next section from the newsletter is Releases and release candidates; we have two. Mike Schmidt: No, you didn’t. Mike Schmidt: Last question from the Stack Exchange is, “What does it mean that the security of 256-bit ECDSA, and therefore Bitcoin keys, is 128 bits? What does it mean that the security of 256-bit ECDSA, and therefore Bitcoin keys, is 128 bits? I’m not doing a great job of explaining this right now, but yes, oftentimes there is a quadratic reduction of the security due to algorithms and what sort of attack model or threat scenario you’re applying, and I think this happens to be the case here.

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