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From: Joost Jager <joost.jager@gmail.com>
Date: Tue, 23 May 2023 09:19:17 +0200
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Subject: [bitcoin-dev] Bitcoin Transaction Relay over Nostr
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Hi,


I write to get your thoughts on an alternative approach for Bitcoin
transaction relay, addressing some of the limitations in the current
peer-to-peer transaction relay system. To the best of my knowledge, the
credit for the original concept goes to Ben Carman. I felt it would be
beneficial to share the idea on this list to garner wider perspectives and
feedback.


The existing peer-to-peer (P2P) transaction relay system comes with a set
of limitations that may negatively impact applications, notably those like
Lightning that make extensive use of pre-signed transactions. A key
limitation lies in the system's inability to relay transaction packages.
This constraint can lead to HTLCs expiring before being swept, thereby
risking fund losses. In addition, the P2P system falls short in supporting
non-standard transactions, despite an established demand for such
transactions in the marketplace.


Nostr, an open and decentralized network of relays for public and ephemeral
messages between pseudonymous entities, could help address these
shortcomings. With the standards defined in NIP-89 [1], it becomes possible
to broadcast arbitrary Bitcoin transaction packages, overcoming one of the
key hurdles in the current relay system.


In this proposed alternative relay mechanism, miners would listen for these
broadcasted transaction packages and insert the packages into their local
mempool. They can take advantage of the `submitpackage` RPC, limited to
safe topologies only - specifically child and direct parents, tree only
[2]. This feature could serve as an interim solution for package relay
until it becomes available through the traditional P2P method.


A notable advantage of this approach is that it delegates the
responsibility of dealing with Denial-of-Service (DoS) threats to the
relays themselves. They could, for example, require a payment to mitigate
such concerns. There are in fact paid nostr relays already in operation.
This partitioning would result in a clear separation between the Bitcoin
transaction layer and DoS protection, introducing more flexibility in the
system and potentially boosting its resilience.


Implementing Nostr as a relay mechanism also has the potential to
democratize access to miner mempools, thus leveling the playing field in
the Bitcoin network. In the current state, those with direct connections or
certain privileges can more readily submit transactions to miners, perhaps
even through means as informal as email.


I have been working on a prototype of this concept (based on [3]) and have
captured its workings in a demonstration video [4].


Joost


[1] https://github.com/nostr-protocol/nips/pull/476

[2] https://github.com/bitcoin/bitcoin/pull/27609#issuecomment-1544414801

[3] https://github.com/benthecarman/nostr-tx-broadcast

[4] https://twitter.com/joostjgr/status/1658487013237211155

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<div dir=3D"ltr">





<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">Hi,</p>
<p class=3D"gmail-p2" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;min-height:15px"><br></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">I write to get your thought=
s on an alternative approach for Bitcoin transaction relay, addressing some=
 of the limitations in the current peer-to-peer transaction relay system. T=
o the best of my knowledge, the credit for the original concept goes to Ben=
 Carman. I felt it would be beneficial to share the idea on this list to ga=
rner wider perspectives and feedback.</p>
<p class=3D"gmail-p2" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;min-height:15px"><br></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">The existing peer-to-peer (=
P2P) transaction relay system comes with a set of limitations that may nega=
tively impact applications, notably those like Lightning that make extensiv=
e use of pre-signed transactions. A key limitation lies in the system&#39;s=
 inability to relay transaction packages. This constraint can lead to HTLCs=
 expiring before being swept, thereby risking fund losses. In addition, the=
 P2P system falls short in supporting non-standard transactions, despite an=
 established demand for such transactions in the marketplace.</p>
<p class=3D"gmail-p2" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;min-height:15px"><br></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">Nostr, an open and decentra=
lized network of relays for public and ephemeral messages between pseudonym=
ous entities, could help address these shortcomings. With the standards def=
ined in NIP-89 [1], it becomes possible to broadcast arbitrary Bitcoin tran=
saction packages, overcoming one of the key hurdles in the current relay sy=
stem.</p>
<p class=3D"gmail-p2" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;min-height:15px"><br></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">In this proposed alternativ=
e relay mechanism, miners would listen for these broadcasted transaction pa=
ckages and insert the packages into their local mempool. They can take adva=
ntage of the `submitpackage` RPC, limited to safe topologies only - specifi=
cally child and direct parents, tree only [2]. This feature could serve as =
an interim solution for package relay until it becomes available through th=
e traditional P2P method.</p>
<p class=3D"gmail-p2" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;min-height:15px"><br></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">A notable advantage of this=
 approach is that it delegates the responsibility of dealing with Denial-of=
-Service (DoS) threats to the relays themselves. They could, for example, r=
equire a payment to mitigate such concerns. There are in fact paid nostr re=
lays already in operation. This partitioning would result in a clear separa=
tion between the Bitcoin transaction layer and DoS protection, introducing =
more flexibility in the system and potentially boosting its resilience.</p>
<p class=3D"gmail-p2" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;min-height:15px"><br></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">Implementing Nostr as a rel=
ay mechanism also has the potential to democratize access to miner mempools=
, thus leveling the playing field in the Bitcoin network. In the current st=
ate, those with direct connections or certain privileges can more readily s=
ubmit transactions to miners, perhaps even through means as informal as ema=
il.</p>
<p class=3D"gmail-p2" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;min-height:15px"><br></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">I have been working on a pr=
ototype of this concept (based on [3]) and have captured its workings in a =
demonstration video [4].</p>
<p class=3D"gmail-p2" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;min-height:15px"><br></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">Joost</p>
<p class=3D"gmail-p2" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;min-height:15px"><br></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">[1] <a href=3D"https://gith=
ub.com/nostr-protocol/nips/pull/476">https://github.com/nostr-protocol/nips=
/pull/476</a></p>
<p class=3D"gmail-p3" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;color:rgb(220,161,13)"><span=
 class=3D"gmail-s1" style=3D"color:rgb(0,0,0)">[2] <a href=3D"https://githu=
b.com/bitcoin/bitcoin/pull/27609#issuecomment-1544414801">https://github.co=
m/bitcoin/bitcoin/pull/27609#issuecomment-1544414801</a></span></p>
<p class=3D"gmail-p1" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;">[3] <a href=3D"https://gith=
ub.com/benthecarman/nostr-tx-broadcast">https://github.com/benthecarman/nos=
tr-tx-broadcast</a></p>
<p class=3D"gmail-p3" style=3D"margin:0px;font-variant-numeric:normal;font-=
variant-east-asian:normal;font-variant-alternates:normal;font-kerning:auto;=
font-feature-settings:normal;font-stretch:normal;font-size:13px;line-height=
:normal;font-family:&quot;Helvetica Neue&quot;;color:rgb(220,161,13)"><span=
 class=3D"gmail-s1" style=3D"color:rgb(0,0,0)">[4] <a href=3D"https://twitt=
er.com/joostjgr/status/1658487013237211155">https://twitter.com/joostjgr/st=
atus/1658487013237211155</a></span></p></div>

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