How do you cash out a Bitcoin? We had a great podcast out in the Chaincode podcast, where we talked to Elle Mouton and Oliver Gugger about simple taproot channels, which basically is this proposal. So now, it’s going to be a very simple version of RBF, where the incentive should be properly aligned because only one party is paying the fees and they are the one proposing that RBF. Mike Schmidt: Yeah, I think it’s probably good to jump into the second news item, then we can continue some of this discussion. And then there’s also a question about when do we jump? And Rusty Russell proposed this on the Lightning-Dev mailing list, and there’s also a PR open with some changes and unfortunately due to time-zone restrictions, Rusty isn’t able to join us to talk about his proposal. As the Bitcoin and cryptocurrency world is emerging, so will the regulation, which will see many changes and laws over time. The U.S. Securities and Exchange Commission (SEC) publicly claimed that Bitcoin is not a security, and most other countries in the world also do not consider Bitcoin as a security.

Modularity would allow users more flexibility in their setups and developers maintainability and security benefits. This automation for the large range of scripts supported by miniscript allows wallets to be much more dynamic about the scripts they use, youtu.be possibly even allowing users to specify their own scripts. Rusty’s proposal was that instead of creating one transaction and trying to negotiate the fees on it, we would actually create two transactions, one for the channel initiator, one for the non-channel initiator, where each one decides how much fees they’re ready to pay and what fees are taken from their output. So, when you have a channel non-initiator, maybe you have more of an incentive to force close than to mutual close because this way it’s going to be the channel initiator that will pay the fees. When it’s below 0.2, the asset may be considered oversold. The user may optionally specify which channels they want to advertise in the invoice, including both public and private channels. By giving the auditor the extended public key (xpub) for just the external addresses, he can track your received payments but still not receive any direct information about your spending or current balance via the change addresses.

Basically, I think there’s some basic agreement on this line that we’re shooting for with package relay, v3, and ephemeral anchors, where the commitment transaction can get a very nice cleanup and improvement and kind of confirmation requirements, while the rest, there’s still some pinning vectors beyond that with HTLC transactions. The user can still generate a P2SH-wrapped segwit address by unchecking a box on the Request Payment screen in case they need to receive money from a service that doesn’t yet provide bech32 sending support. When comparing this to the carbon intensity of mining Bitcoins, we can observe that the latter exceeds that of mining real gold (see below). When market trading is open, the Stockpair site shows a payout value in real time. Bitcoin is a peer-to-peer system that allows users to transfer value between each other without requiring a trusted third party to act as an intermediary. That said, since the use of Bitcoin can be tracked, cryptocurrency exchanges that operate under federal regulations have been known to lock out users who use their Bitcoins for illegal activities.

So, everyone should have a transaction they’re happy with now. And the other party can also say, "I want a transaction too, here is the fee I’m ready to pay. So in the end, you have two transactions that are negotiated with just one request and response, one where the initiator is paying the fee, one where the non-initiator is paying the fee, and each of them chose the fee they are ready to pay. And already, with only one side of a channel being able to send that message, it creates a lot of issues, because updating the fee of a commitment transaction while you have a lot of HTLCs in flight can actually make you deep into your reserve. But after that, there’s a reserve on each side. And basically, there’s some choices to be made there. There was a variety of topics that we highlighted from that list in the newsletter this week. Mike Schmidt: Speaking of some of those improvements, the first item we noted from the summit was Reliable transaction confirmation, which was a discussion that includes package relay, v3 transaction relay, ephemeral anchors, cluster mempool, and a bunch of other topics about getting your transactions relayed and mined.