[bitcoindev] ESSPI: ECDSA/Schnorr Signed Program Input for BitVMX

[Sergio Demian Lerner <sergio.d.lerner@gmail.com>]

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Hello!
I'd like to present to bitcoin-dev an improvement to the BitVMX protocol 
that enables the optimistic verification of long proofs (i.e. STARKs) on 
Bitcoin without soft forks.

Here is the abstract and paper links: 
https://bitvmx.org/files/esspi-ecdsa-input-bitvmx.pdf

*Abstract*

The BitVM and BitVMX protocols have long relied on inefficient one-time 
signature (OTS) schemes like Lamport and Winternitz for signing program 
inputs. These schemes exhibit significant storage overheads, hindering 
their practical application. This paper introduces ESSPI, an optimized 
method leveraging ECDSA/Schnorr signatures to sign the BitVMX program 
input. With Schnorr signatures we achieve an optimal 1:1 data expansion, 
compared to the current known best ratio of 1:200 based on Winternitz 
signatures. To accomplish this we introduce 4 innovations to BitVMX: (1) a 
modification of the BitVMX CPU, adding a challengeable hashing core to it, 
(2) a new partition-based search to detect fraud during hashing, (3) a new 
enhanced transaction DAG with added data-carrying transactions with a 
fraud-verifying smart-contract and (4) a novel timelock-based method for 
proving data availability to Bitcoin smart contracts. The enhanced BitVMX 
protocol enables the verification of uncompressed inputs such as SPV 
proofs, NiPoPoWs, or longer computation integrity proofs, such as STARKs.

Best, Sergio.

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