Describe PSBT as portable data format

[DanGould]

Yes, PSBT was born to solve the multisig problem, but now, especially after PSBT2, its use has expanded to facilitate all types of interactive transactions.

I'd rather see it described as a data format or a bitcoin standard than a file format. The situations where psbt are serialized to a file system represent only a fraction of their use.

It may help to explain that, in contrast to PSBT, a consensus Transaction only has data necessary to perform validation, including only references to look up to inputs earlier in the blockchain. While a PSBT may have complete input information rather than just those reference pointers.

I see PSBTs as scaffolding with which interactive parties may come to agree on a consensus transaction to broadcast.

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[yashrajd]

My view is that a distinction be made between the format and its instantiation (thanks @DanGould for this word), though they are referred by the same name. The current definition only defines PSBT as a format, but data/file in the PSBT format is routinely referred to as a PSBT.

This is far from the only instance where such a confusion arises. eg: "monkey jpegs"

In many (probably majority) situations we're talking about an individual transaction in the format prescribed by BIP-174. A great example of this is BIP-78

[GBKS]

Is this ready for final review or are you still working on changes based on the unresolved conversation?

[yashrajd]

@DanGould it'd be great to have this ready for final review.

edit: spoke to Dan and can't get to it right now. I can create a new PR if this is urgent.

[DanGould]

Revised based on feedback

• "first stating what it is"
• explain scenarios that make use of both versions with links into other parts of the glossary
• demonstrate "data/file itself is referred to as the PSBT" in the last sentence.
• link to V0, V2 specs + deep dive article

ready for review

[DanGould]

ready ✨