Re: [bitcoin-dev] [Pre-BIP] Fee Accounts

[Peter Todd <pete@petertodd.org>]

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On Sat, Jan 01, 2022 at 12:04:00PM -0800, Jeremy via bitcoin-dev wrote:
> Happy new years devs,
> 
> I figured I would share some thoughts for conceptual review that have been
> bouncing around my head as an opportunity to clean up the fee paying
> semantics in bitcoin "for good". The design space is very wide on the
> approach I'll share, so below is just a sketch of how it could work which
> I'm sure could be improved greatly.
> 
> Transaction fees are an integral part of bitcoin.
> 
> However, due to quirks of Bitcoin's transaction design, fees are a part of
> the transactions that they occur in.
> 
> While this works in a "Bitcoin 1.0" world, where all transactions are
> simple on-chain transfers, real world use of Bitcoin requires support for
> things like Fee Bumping stuck transactions, DoS resistant Payment Channels,
> and other long lived Smart Contracts that can't predict future fee rates.
> Having the fees paid in band makes writing these contracts much more
> difficult as you can't merely express the logic you want for the
> transaction, but also the fees.
> 
> Previously, I proposed a special type of transaction called a "Sponsor"
> which has some special consensus + mempool rules to allow arbitrarily
> appending fees to a transaction to bump it up in the mempool.
> 
> As an alternative, we could establish an account system in Bitcoin as an
> "extension block".

<snip>

> This type of design works really well for channels because the addition of
> fees to e.g. a channel state does not require any sort of pre-planning
> (e.g. anchors) or transaction flexibility (SIGHASH flags). This sort of
> design is naturally immune to pinning issues since you could offer to pay a
> fee for any TXID and the number of fee adding offers does not need to be
> restricted in the same way the descendant transactions would need to be.

So it's important to recognize that fee accounts introduce their own kind of
transaction pinning attacks: third parties would be able to attach arbitrary
fees to any transaction without permission. This isn't necessarily a good
thing: I don't want third parties to be able to grief my transaction engines by
getting obsolete transactions confirmed in liu of the replacments I actually
want confirmed. Eg a third party could mess up OpenTimestamps calendars at
relatively low cost by delaying the mining of timestamp txs.

Of course, there's an obvious way to fix this: allow transactions to designate
a pubkey allowed to add further transaction fees if required. Which Bitcoin
already has in two forms: Replace-by-Fee and Child Pays for Parent.

-- 
https://petertodd.org 'peter'[:-1]@petertodd.org

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