Taproot Channel Transactions

[ellemouton]

Feedback welcome :) I suggest viewing in the "Files Changed" mode instead of by commit for this.

see the post with diagrams here: https://ellemouton.com/drafts/taproot-chan-txs/

[Liongrass]

My only questions after reading the article:

• Why do channel participants have to prove to the network that their output does not contain hidden script paths?

[ellemouton]

Hi @Liongrass ! Thanks for giving it a read 🎉

so there reason for wanting to prove no script paths is similar to today where we want to prove that it is a 2-0f-2 multisig: we are in essence just giving more of a reason for other nodes to trust that it is in fact a Lightning channel that cannot easily (or without some cost) be used for something else. It is called "Binding to the LN context". So with this tweak, we just show the network "hey, i have an output here that is only spendable via the keyspend path & it is a musig2". this doesnt stop people from creating spam channel but does disincentives them since they would have this utxo that they can only spend in a limited way. I think in the end, this tweak will end up being optional