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+References: <CAEM=y+XMLuGH-MAfkYanfbU3Ynduw54jDVguKxgO2xEtnSEkZg@mail.gmail.com>
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+From: Ethan Heilman <eth3rs@gmail.com>
+Date: Mon, 14 Apr 2025 15:35:33 -0400
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+Message-ID: <CAEM=y+VK2VwoTc3VbHFbARm9no6qJivrug+LPuGy_m8+PFELOA@mail.gmail.com>
+Subject: Re: [bitcoindev] Post Quantum Signatures and Scaling Bitcoin
+To: Pieter Wuille <bitcoin-dev@wuille.net>
+Cc: Bitcoin Development Mailing List <bitcoindev@googlegroups.com>
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+
+> I'm happy to see thinking and discussion in this area.
+
+Getting this discussion going was exactly my intent. I'm not
+presenting so much a solution as we might want to do this at some
+point what are problems and can we solve them?
+
+> If it turns out to be the case that PQ schemes need more on-chain size, b=
+ut have lower per-byte computation cost, a reasonable argument could be mad=
+e that a higher discount factor for PQ data is acceptable.
+
+I was focused on size because computation is pretty great for most PQ
+signature schemes. PQ signatures are far cheaper to validate per byte
+and according to BIP-360 Falcon is cheaper than edDSA per signature
+verification.
+
+EdDSA Cycles to verify: 130,000
+FALCON-512 Cycles to verify: 81,036
+
+This is one of the reasons I am very optimistic that Bitcoin will move
+to post-quantum signatures. If research shows that these signature
+schemes are sufficiently JPEG resistant, and I think it will, then a
+discount is very attractive.
+
+> I don't think pre-aggregation (beyond a single-transaction-wide one) is r=
+ealistic, as it effectively breaks in-mempool transaction replacement, turn=
+ing every pre-aggregated group of transactions that is being relayed togeth=
+er into an atomic package that must be taken or not as a whole.
+
+In some circumstances it is possible you could aggregate (P+C1, P+C2)
+into (P+C1+C2). If you can prove that P is the same in both
+transactions thus the balance and authentication properties are
+maintained. However I think what you have described is the shape of
+the problem we need to solve.
+
+Consider transactions: T1, T1', T2, T3, T4, T5
+where T1 and T1' are double spends, i.e., spend the same output to
+different outputs. If half the mempool aggregates TA =3D (T1, T2, T3)
+and the other half aggregates TB =3D (T1', T4, T5). TA and TB are
+mutually exclusive and transactions are needlessly dropped on the
+floor. This is a currently existing griefing vector with coinjoins
+today and is an issue with mimblewimble aggregation. I don't think we
+have seen it abused much, but that doesn't mean we can ignore it.
+
+I believe this is a solvable problem, but it requires careful thought
+and I haven't seen a fully baked answer. What follows is my intuition
+on how this might be solved.
+
+Approach one: have relay nodes share a map of what UTXOs would be
+spent by their mempool prior to performing an aggregation to detect
+and resolve doublespends.
+Approach two: allow an aggregator to non-interactively aggregate a set
+of transactions if they are the sender or receiver of funds in all the
+transactions they are aggregating.
+
+My biggest concern here is a conflict between aggregator/relay
+incentives and miner incentives that either causes miners to be
+aggregators or reduces the profitability of miners. This conflict
+arises from the fact that, unless prevented by the protocol, an
+aggregator can aggregate high fee transactions with low fee
+transactions in such a way as to reduce miner fees and possibility
+make fees for themselves.
+
+For the sake of example assume blocksize allows only two transactions per b=
+lock:
+T1 has a 100 sat/vb fee
+T2 has a 100 sat/vb fee
+T3 has a 50 sat/vb fee
+T4 has a 50 sat/vb fee
+
+If the miner was the aggregator they would aggregate (T1 + T2) and
+mine it to get the highest fee.
+Instead an aggregator who is not a miner could collect a fee from the
+creator of T3 and T4 and aggregate (T1 + T3) and (T2 + T4) thereby
+raising the average fee of T3 and T4. The miner loses out on fees.
+
+Approach two makes this less of an issue because the creator of T1,
+if they are aware T2 exists, is unlikely to consent to having T1
+aggregated with T3 since it lowers the total fee.
+
+This relay vs miner conflict isn't an entirely new issue in Bitcoin.
+Miners today could run relay nodes and keep the high fee transactions
+for themselves. I assume this isn't done very much in 2025 because the
+block subsidy still dominates, but is likely to be a bigger issue when
+fees dominate.
+
+On Mon, Apr 14, 2025 at 9:47=E2=80=AFAM Pieter Wuille <bitcoin-dev@wuille.n=
+et> wrote:
+>
+> Hi Ethan,
+>
+> thank you bringing this up. I'm unconvinced about the practicality, but I=
+'m happy to see thinking and discussion in this area.
+>
+> Two points addressed below:
+>
+> On Friday, April 4th, 2025 at 12:29 PM, Ethan Heilman <eth3rs@gmail.com> =
+wrote:
+>
+> > If it is the case that we can
+> > handle these extra bytes without degrading performance or
+> > decentralization, then consider the head room we are giving up that
+> > could be used for scalability.
+>
+> I don't disagree with the overall point raised here, but I do think it's =
+worth distinguishing between the "size" (bandwidth/storage) and "computatio=
+n" (CPU/IO) aspects of scalability.
+>
+> If it turns out to be the case that PQ schemes need more on-chain size, b=
+ut have lower per-byte computation cost, a reasonable argument could be mad=
+e that a higher discount factor for PQ data is acceptable. I don't know wha=
+t the trade-off here ought to be, and this does not diminish your "JPEG res=
+istance" argument, but I did want to point out that just counting size isn'=
+t the only constraint here.
+>
+> > Such a system would present scaling issues for the mempool because
+> > prior to aggregation and compression, these transactions would be 2kb
+> > to 100kb in size and there would be a lot more of them. It is likely
+> > parties producing large numbers of transactions would want to
+> > pre-aggregate and compress them in one big many input, many output
+> > transactions. Aggregating prior to the miner may have privacy benefits
+> > but also scalability benefits as it would enable cut-throughs and very
+> > cheap consolidation transactions. ~87/txns a second does not include
+> > these additional scalability benefits.
+>
+> I don't think pre-aggregation (beyond a single-transaction-wide one) is r=
+ealistic, as it effectively breaks in-mempool transaction replacement, turn=
+ing every pre-aggregated group of transactions that is being relayed togeth=
+er into an atomic package that must be taken or not as a whole. Consider fo=
+r example the case where transactions P, C1, and C2 are relayed, with C1 an=
+d C2 depending on P. One node sees P and C1, but not C2, they may pre-aggre=
+gate prior to relay. Another node sees P and C2, but not C1, they may pre-a=
+ggregate those prior to relay. These two packages (P+C1, P+C2) cannot be co=
+mbined, so we've effectively forced the network/miners to choose between on=
+e of C1 or C2, unless the individual transactions are still available somew=
+here.
+>
+> I fear this is a very fast way to cause mining without direct-to-miner tr=
+ansaction submission from users to become uncompetitive, making entering th=
+e mining business permissioned, and effectively removing the point of havin=
+g a decentralized consensus mechanism in the first place.
+>
+> --
+> Pieter
+>
+
+--=20
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+m.
+