Design plan for SegWit support

oscarguindzberg commented 4 years ago

_This is a Bisq Network project. Please familiarize yourself with the project management process._

Description

Design a plan for migrating to bitcoinj 0.15 and using segwit in bisq. Implementation is not part of this project.

Rationale

Benefits of using segwit:

Users could withdraw btc from their bisq wallet to an external segwit (bech32) address.
Pay less fees in btc transactions when segwit is used.
Eliminate a transaction malleability exploit in the trade protocol which can cause the deposit TX and payout TX to become invalidated.
Extra: get access to all the new features in bitcoinj 0.15 (not immediate benefit, but the potential is there)

A design/plan project is created because there are options to evaluate, decisions to make and it would be very hard to estimate implementation before design/plan is done.

Criteria for delivery

Document with a design/plan for using segwit in bisq. Alternatives, roadblocks, pro/cons and migration concerns should be described.

Measures of success

An implementation project is started.
Once implemented...
User withdraw btc from their Bisq wallet to a external segwit (bech32) addresses.
btc transactions are cheaper, users perceive it is cheaper to use bisq.
Malleability exploit in the trade protocol is gone.
bitcoinj 0.15 features are used by bisq devs.

Risks

Since this is a plan/design project, the only risk is its outcome is not implemented.

Tasks

Plan migration to bitcoinj 0.15
List different parts of bisq where segwit could be adopted and evaluate cost/benefit of each one.
List segwit migration alternatives and evaluate cost/benefit of each one.
Write an implementation plan for the chosen alternative.

Estimates

4000 USD

Notes

dmos62 commented 4 years ago

Welcome back, @oscarguindzberg! I'm in early stages of a Bisq-side BitcoinJ refactor (https://github.com/bisq-network/projects/issues/30), with the goal of making maintenance easier for Bisq-side devs and the BitcoinJ maintainer. Currently, I'm finishing up a concrete-ish sketch of what I have in mind and should post it soon enough.

I would like to bounce some ideas off you and see how to make this refactor more helpful to your BitcoinJ-related projects here. I see that you haven't created a Keybase account yet. Could you reach me there when you do? My handle is dmos.

cbeams commented 4 years ago

@sqrrm (acting dev team lead) and I met and discussed this project and approved it. I've updated the labels to reflect, and I've added this issue to the Master Projects Board as In Progress.

@oscarguindzberg, let us know if you need anything along the way. Thanks.

oscarguindzberg commented 4 years ago

@cbeams Thanks, I don't have any questions so far. @sqrrm and I had a conversation a few days ago, he explained me the basics of the trade protocol.

@dmos62 I will contact you on keybase probably next week.

chimp1984 commented 3 years ago

@cbeams Can we close that?

cbeams commented 3 years ago

Closing as (long ago) complete.

bisq-network / projects