Re: [bitcoin-dev] BIP proposal: Timelocked address fidelity bond for BIP39 seeds

[ZmnSCPxj <ZmnSCPxj@protonmail.com>]

Good morning Chris,

> Hello ZmnSCPxj,
>
> Renting out fidelity bonds is an interesting idea. It might happen in
> the situation where a hodler wants to generate yield but doesn't want
> the hassle of running a full node and yield generator. A big downside of
> it is that the yield generator income is random while the rent paid is a
> fixed cost, so there's a chance that the income won't cover the rent.

The fact that *renting* is at all possible suggests to me that the following situation *could* arise:

* A market of lessors arises.
* A surveillor creates multiple identities.
* Each fake identity rents separately from multiple lessors.
* Surveillor gets privacy data by paying out rent money to the lessor market.

In defiads, I and Tamas pretty much concluded that rental would happen inevitably.
One could say that defiads was a kind of fidelity bond system.
Our solution for defiads was to prioritize propagating advertisements (roughly equivalent to the certificates in your system, I think) with larger bonded values * min(bonded_time, 1 year).
However, do note that we did not intend defiads to be used for privacy-sensitive applications like JoinMarket/Teleport.


Regards,
ZmnSCPxj