Time to boost Bitcoin circulation, Million Transactions Per Second, more privacy

[raymaot]

...

The attacker brings 10 000 satoshis to the table, he receives the same amount in SABU

If you intended a malisciuos "issuer" as an attacker, your asumption is wrong, since in Sabu transaction standards Issuer can sign maximum 20,000 Satoshi as his debt and for this transaction the issuer must spend a UTXO worth at leaset 40,000 Satoshi. Each Main Transaction(MT) has to pay fixed 10,000 Satoshi as Bitcoin transaction fee despite the length of transaction or amount of transaction. So your cheating scenario fails. It is almost what you sugessted
please study the images (6. Aggregate credits and 3. Transaction in detail).
But! who is going to entrust you with twice the amount of bitcoins just to be able to spend on that amount in a token

Please re-read the proposal main idea. There is no "token". it is just Bitcoin and valid Bitcoin transactions. The only thing is different is the amount of outputs. Issuers sign transactions and earn very small fees(10 Satoshi per transaction) but they can handle thousands of transactions per day and by this earn a significant income which incentivize them to use this system, on the other hand the creditors can buy (and transfer) small amount of Bitcoin(even under 5$) with no dependency to exchanges or KYC or high transaction fee. It would be a mechanism for small saving and once the creditor has enough funds(near one or thousands of different issuers), he can transfer it to Bitcoin blockchain.

So either the risk of google disabling my accounts as it doesn't like those mails or pay for a paid email service that would cost me more than the fees. 

The email service cost will be 20$ per year or less. Meanwhile Email can be replaced (or pralelly exist) by central servers or some peer-to-peer IP based system. It is only a communication mechanism which I still prefer email because I have a particular point of view about this project and its future features. So some third parties can easily provide the communicate service for wallet.

you should really look at it from the perspective of the customer! What would the average Joe think of this?

The system must be super user friendly, the average joe will not aware of all these complexities. He know his friends email and add them to his wallet and starts to send and receive funds. All these complexities are behind the scene and on our technical shoulder. We are here to make the things make the life easier for people.

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[raymaot]

Almost all email service provider rely on domain, where domain system is centralized, so it's ridiculous to claim it's highly decentralized. However, it's different case if the email service uses onion address.

please note that the email is the ONLY neutral, free (non proprietary) and open protocol/technology for communication in the world that its infrastructure is well-established and is accessible all over the glob.

See Matrix protocol.

By this rationality even using pure TCP/IP is a centralized solution!
Please note the fact that decentralization can be interpreted in different depth of abstraction. By the way if the email bothered you, as you mentioned the wallet can use Matrix, Nym network, Onion, I2P, classic central servers,... these are all communication mean and the wallet can simply use one or more in parallel.
Although I still believe email is a perfect choice, and in future we will see the wallet users will choose which solution.

[stompix]

If you intended a malisciuos "issuer" as an attacker, your asumption is wrong, since in Sabu transaction standards Issuer can sign maximum 20,000 Satoshi as his debt and for this transaction the issuer must spend a UTXO worth at leaset 40,000 Satoshi. Each Main Transaction(MT) has to pay fixed 10,000 Satoshi as Bitcoin transaction fee despite the length of transaction or amount of transaction. So your cheating scenario fails. It is almost what you sugessted

So I have to pay 25% in fees to avoid fees on the chain?
And not only that I have to deposit double what I will be allowed to spend?
Where do those fees suddenly pop out from?

This while I can open an LN channel for a few satoshis right now with nobody taking half of my money and only guarantee me through a 3rd party system I will see them back, without being tied to some measly 20k satoshi but mBTC and pay 0.01% in the fees I create there?

The system must be super user friendly, the average joe will not aware of all these complexities. He know his friends email and add them to his wallet and starts to send and receive funds. All these complexities are behind the scene and on our technical shoulder. We are here to make the things make the life easier for people.

Nope, it's not simple at all.

The average Joe has to install another app on top of his wallet, he must learn how to create those transactions, he must create and link an email, he must then switch to the other protocol and spend those, and I will repeat TOKENS, cause that's what they are tokens, and do this each time for 20k satoshi, 7$ at the current price. That's why I'm telling you don't understand the average customer, they don't want this, they don't want to deal even with electrum or bitcoin core, they don't want addresses, just a QR code, they don't care about satoshi but what that means in USD. Look how hard for some to adapt to LN, most will switch to solutions like a strike or blue wallet that do all the complicated stuff for them and you're coming with a solution three times more complicated than LN.

[_biO_]

So when Alice wants to send 1 BTC to Bob, Bob has to risk losing 1 BTC provided for the Guarantee Transaction? (Alice might be rich and malicious.)

[raymaot]

So when Alice wants to send 1 BTC to Bob, Bob has to risk losing 1 BTC provided for the Guarantee Transaction? (Alice might be rich and malicious.)

Please use the terms "Issuer" and "Creditor" to avoid misunderstanding.
The issuer is Bitcoin owner who can issue a valid Bitcoin transaction and inside the transaction promise an output to creditor.
on the other hand the creditor is a person who accept a transaction as a kind of debt-document, and do not send it to Bitcoin network. like you have a valid check from me but you do not go to bank to cash it. instead you spend my check directly and give it to the other person.

[th@5]

You don't seem to be familiar with the Lightning Network, it already solves the problems you're trying to solve, already has a large user base, and it much more secure than your proposal.
If you already know the Lightning Network, why do you think your proposal is an improvement?

Your protocol has many security flaws but what baffles me the most is that you want to rely on mobile wallets. What happens if my issuer is offline? I can't spend my bitcoins anymore (unless I go onchain which is what we're trying to avoid here).

[Ma77sh]

Sabu, An off-chain small payments protocol, based on Bitcoin UTXOs

by Ray Makan Otas (Raymo)


I am going to introduce a solution for Bitcoin low throughput (TPS) and its week privacy. It solves Bitcoin scaling problem and help its prevalence, particularly in small payments. It also highly increases the privacy level of Bitcoin users. It is a layer two protocol named “Sabu” and works perfectly with current Bitcoin core protocol. Sabu protocol is fully decentralized although it does not implemented based on blockchain or side-chains or any kind of DLT. In order to use Sabu protocol users only need to download the mobile wallet app (Gazin) and install it. No need to pay Bitcoin transaction fee, no need to open/close channels, no need to record transaction in Bitcoin blockchain, no need to run any server, no need to deposit or block money or Bitcoin in smart contract or stacking or any other third parties interference, even no need to have technical skills. And the last but not least no KYC at all.

How Bitcoin transaction works?
Owning Bitcoin, means having some UTXO (recorded in Bitcoin blockchain) under your control. That is you can sign that UTXO to prove you are the legitimate owner of that money. So if you want to spend your Bitcoins, you create a transaction by which sign your under-controlled UTXO(s) and represent your desire to transfer this ownership to the other person. This transaction is a document that issued by you and provides a legitimate order for this money transfer. In order to execute this money transfer, you need to broadcast your signed document to Bitcoin network aimed to record it in Bitcoin blockchain, otherwise, no money transfer has taken place. After recording this transaction in Bitcoin blockchain, “Everyone” will be aware of the new owner(s) of that particular spent coins.

How Sabu protocol works?
You -as a UTXO owner- are an “issuer”, and always can issue a document(AKA transaction) by which you represent your will to transfer some of your UTXOs to others. As long as this document is not registered in the Bitcoin blockchain, it is nothing more than a debt-document. i.e you owe some Bitcoins to someone else. That guy naming her/him “creditor” payed money to you or provided goods or services for you, in exchange of this transaction. Thus s/he has a copy of this transaction in her/his wallet. The creditor can send this transaction to Bitcoin blockchain network aimed to record this money transformation in Bitcoin blockchain, or keep this transaction in wallet. The creditor always can broadcast this transaction to Bitcoin network, but due to the high transaction fee on the Bitcoin blockchain and the insignificance of the amount transferred (a few Dollars), the creditor will not send the document to the Bitcoin network, instead s/he prefers to use this document as a payment method and exchange these documents in Sabu protocol and in an off-chain manner.
In this exchange process, you as the issuer will be informed of this credit transformation between two Sabu users and you have to issue a new document in which you owe the new creditor(s).
Sabu protocol is an off-chain protocol in which the UTXO owners (issuers) can issue debt documents and give them to creditors in exchange for fiat money or goods or services. The creditors can spend these documents and give them to other creditors or other issuers in exchange of money, goods, or services.
The issuers earn small Sabu-transaction-fee per each money transfer (10 Sat per transaction). Millions of issuers and creditors can exchanging these documents (transactions) in a pure peer-to-peer network continually, with no central authority. There is no blockchain nor public ledger. Users do not need to open/close channel or pay Bitcoin transaction fee neither routing fee at all.
After each dealing, the issuer cancels the old transaction and creates a new document, and updates the creditor balances. These documents will be in circulation between issuers and creditors in the Sabu network forever meanwhile less than one percent of these transactions will be recorded on the Bitcoin blockchain.
Either issuers or creditors in order to use Sabu protocol need to install Sabu mobile wallet (called Gazin) and start to deal. That is all they need. No technical skill or extra cost needed.

read full paper on
https://raymo-49157.medium.com/time-to-boost-bitcoin-circulation-million-transactions-per-second-and-privacy-1eef8568d180

[raymaot]

After introducing Sabu protocol as a solution for Bitcoin scaling (https://raymo-49157.medium.com/time-to-boost-bitcoin-circulation-million-transactions-per-second-and-privacy-1eef8568d180), I shared this idea with Bitcoin developers through the bitcoin-dev mailing list.
I got some constructive feedbacks and critiques leading me to add this part to the proposal which I was skipped due to brevity of proposal introduction.

Here I will investigate on more real live scenarios, general usages and corner cases, and the consequences of some attacks or buggy implementation of protocol, as well as different actors (malicious, irrational, profit seeker, griefer, stupid, reckless, incompetent, etc.) activity effects.

In proposal introduction (previous post), I did not talk about Lightning deliberately, although it seems that this solution is an alternative to Lightning.
Most of readers misunderstood Sabu and asking what differs it from Lightning?
Indeed, Sabu has nothing with Lightning. It has totally different design, network architecture, security model and implementation. The only thing in common with Lightning is both are intended to cover micro payments.
The good thing about Bitcoin is that it does not require any kind of permission. Consequently, related products do not need to ask permission too. We are in a permission-less free market. I think Sabu will work perfectly and if a group of users think like me, we are done. Sabu will work parallel the other scaling solutions without need to drive them out.
However, I have made a comparison between Sabu, on-chain and Lightning transactions to get a clearer understanding of the advantages and disadvantages of Sabu and answer to “why we should implement and use Sabu in our day-to-day deals”.
Most probably this paper is not comprehensive document, therefore this article will be updated.

read here for complete post:
https://raymo-49157.medium.com/scaling-bitcoin-by-sabu-protocol-risks-and-benefits-62157f8a664e