Ether was up 56% in the last month, far outpacing the gains made by bitcoin. So, in the regular multi-hop payment as we use it today, the last hop getting established of the contract also transfers the secret to the recipient so that they can start to pull in the payment, which makes it cascade back to the sender. But with these both redundant overpayments and also with the stepless payment, basically we first establish the contract and once we get a response from the recipient that they have received sufficient parts of the contract, we would only then exchange the secret; and once they have the secret, we can exchange the secret in a form in which they are only allowed to pull in enough payments. If you have a fixed currency supply, you should expect the value of currency to go down as economic activity increases. NFTs and other cryptocurrencies have the potential to become a universal currency for global online shopping, selling private property between individuals, and as investments analogous to stock trading, among other things. That’s a potential side effect of 1559, but not the core goal. So basically that’s the idea here, right?
And if anything along the way can be linked to your identity – for example if you bought or sold using your bank account, face to face with cash, or even using a voucher from a store with CCTV – then an agency with the right tools could theoretically find you without much trouble. And they’re going to be tweaked at every hop, which means that even if you have multiple nodes that are on the path of the same payment, it’s not going to be payment hash, you’re going to see a different point, a different secret than in both nodes. So, those things become possible with PTLCs, and we’ll see when we actually implement them. So, maybe this is an issue, maybe not, but we’ll have to think about it in more detail. But I think this is still very far away in the future. The ideas were still being actively discussed as this summary was being written. I think this is still going to be different for later, and we are just going to be allowing any kind of UTXO in your channel announcement that has to match the capacity of the channel that you are announcing.
If you have another Lightning-like channel specification that you coded up or a custom channel type, you can also include that in this channel announcement and it will just work. You have more risk that one of those shards will not get to the recipient because there’s a buggy node somewhere in the middle. So, what if you could instead send more than what you are actually trying to send to increase the likelihood that at least the required amount gets to the destination, but while preventing the recipient from claiming more than what you intended them to have. Dogecoin isn’t in the top 10 when it comes to market cap but has nonetheless generated a substantial amount of attention due to its association with a meme. Again, this is a result partly of government actions, and but also partly of market forces. However, with each passing day we find new use cases for cryptocurrency/blockchain based services in market that is witnessing a sea change. Bastien Teinturier: Okay, so PTLCs are a change that is allowed by taproot and adaptor signatures.
Mike Schmidt: Next section from the Summit discussed PTLCs and redundant overpayments. Mike Schmidt: Maybe dig a bit deeper into this multiplier concept, like what needs to be – I know that’s not something that is getting moved forward with, I just want to understand a bit myself. So, this is a very nice improvement and it also opens the door to creating more things on top of normal payments like redundant overpayments. But with this, this kind of narrowly allows taproot channels as well, but it also opens the door for experimental channels. Greg Sanders: Well, they can all be jamming vectors, it depends. Greg Sanders: Yeah, that sounds right. And right now, it’s going to use the same payment hash with all these nodes, which means that if someone owns two of the nodes in the path, they are learning information, and this is bad for privacy. PTLC fixes that by making sure that instead of using the preimage of a SHA256 hash and its hash, we’re going to use elliptic curve points and their private keys. Spear is the H2TLC, or something like that, which can be converted into PTLC. So right now, the way channels are announced, it has to be specific 2-of-2 multisig, www.youtube.com looks exactly like ln-penalty channels.
