After a bit of concern and controversy, it is good to know that Binance took regulation and compliance seriously and enhanced its regulatory framework. This is know as mining. She also asked how they would work with blinded paths where a spending node wouldn’t know the full path to the receiving node. Russell O’Connor replied that a full Codex32 recovery code can be checked much faster than full verification if the user is willing to accept less protection. Peter Todd suggested using an algorithm that provided roughly 99.9% protection against any typos, which he thought would be sufficiently strong, easy for people to use, and https://youtu.be easy for people to memorize so that they didn’t need the extra Codex32 materials. Checking just two characters at a time would guarantee detection of any single-character mistake in a recovery code and provide 99.9% protection against other substitution errors. A March report from CCData showed that Binance’s spot market share across top-tier exchanges fell in March for the first time in five months to 57.7% from 62.0% in February.
● Upfront payments: if Alice’s node wants to forward payments through Bob’s node, her node first uses LN to buy a credential from Bob. Riard replied that it would be difficult to redistribute credential tokens and create a market for them because any transfer would require trust. ● 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. Riard proposes that each forwarding node should only accept the relay instructions if they include one or more credential tokens that were previously issued by that forwarding node. ● UTXO ownership proofs or other alternatives: although not necessary for Riard’s initial proposal, some forwarding nodes may experiment with giving credentials to everyone who proves they own a Bitcoin UTXO, perhaps with modifiers that give older or higher-value UTXOs more credential tokens than newer or lower-value UTXOs. This gives potential Binance users several options for picking a server that will give them an IP address that allows them to access Binance services.
No changes are required to Codex32 to obtain the reinforcing quick check property, although Codex32’s documentation will need to be updated to provide the necessary tables and worksheets in order to make it usable. For blinded paths, it appears the receiver can provide any necessary credentials in an encrypted form without introducing a secondary vulnerability. The hops going past the node won’t be used, but they will make it harder for the spender to determine how many hops the receiver is from the last non-blinded forwarding node in the route. The lower the value of the target field, the harder it is to mine the block. This block is the point of creation of the blockchain and is the only block actually issued by a centralized authority. A blockchain is a distributed database or ledger shared among a computer network’s nodes. Blockchain technology has given rise to the Ethereum platform which further has laid a foundation for the development of various mobile as well as website apps.
Needless to say while the initial introduction of the technology came with a desktop program, it can now be directly operated through a smartphone application. ● HWI 2.2.1 is a maintenance release of this application for allowing software wallets to interface with hardware signing devices. RPC in order to support migrating encrypted legacy wallets and wallets not currently loaded into descriptor wallets. 25943 adds a parameter to the sendrawtransaction RPC to limit the amount of funds burned per output. 2061 adds initial support for onion messages. 7122 adds support to lncli for processing binary PSBT files. BIP174 specifies that PSBTs may be encoded either as plain text Base64 or binary in a file. Prior, LND already supported importing Base64-encoded PSBTs either as plain text or from file. ● LND 0.15.5-beta.rc2 is a release candidate for a maintenance release of LND. ● lnd v0.16.0-beta.rc1 is a release candidate for a new major version of this popular LN implementation. ● Core Lightning 22.11rc3 is a release candidate for the next major version of CLN. This week’s newsletter describes a proposal to allow LN nodes to advertise capacity-dependent feerates and announces a software fork of Bitcoin Core focused on testing major protocol changes on signet.