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Author Topic: Confidential transactions  (Read 215 times)
Shymaa-Arafat (OP)
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October 23, 2021, 04:40:03 PM
Last edit: October 23, 2021, 05:00:18 PM by Shymaa-Arafat
Merited by vapourminer (3), fillippone (3), ABCbits (2)
 #1

When studying this lec about confidential TXs, Pedersen commitments,...etc
https://youtu.be/UySc4jxbqi4

I'm wondering:
1-How does the UTXO get stored eventually in the UTXOS set?
Is it in its we could say encrypted or obfuscated form, or what?
I mean no mention about public reveal to all, what if it's dust value for example?
Or how the continuous data analysis sites consider it? in what range of values?

2-What about the fees?
Most of the EQs are based on input= output, how do we put the fee and how will miners know a its value?
-Is this the case I previously encountered in a paper where a UTXO must be dedicated to the fee in each TX?
-Even though, miners should know the fee in advance to decide whether or not to select this TX, so how?

Ps.
I knew from before, during studying frontrunning, the concept of "commit then reveal" but didn't know the details of how it's done (although such discussions/ research papers discuss the abstract concept, they're mostly Ethereum oriented so didn't raise Similar questions in my mind)
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October 23, 2021, 09:14:50 PM
Merited by garlonicon (5), ABCbits (4), fillippone (3), NeuroticFish (2)
 #2

I'm wondering:
1-How does the UTXO get stored eventually in the UTXOS set?
Is it in its we could say encrypted or obfuscated form, or what?
I mean no mention about public reveal to all, what if it's dust value for example?
Or how the continuous data analysis sites consider it? in what range of values?
It's stored in basically the same way Bitcoin stores UTXOs - the prevout with the corresponding script and blinded assets and values. This is taken directly from the transactions.

2-What about the fees?
Most of the EQs are based on input= output, how do we put the fee and how will miners know a its value?
-Is this the case I previously encountered in a paper where a UTXO must be dedicated to the fee in each TX?
-Even though, miners should know the fee in advance to decide whether or not to select this TX, so how?
Fees are explicit. They are put in an output with an empty output script. The value of a fee output is not blinded. As fee outputs are special, they don't go into the UTXO set.

Shymaa-Arafat (OP)
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October 24, 2021, 12:05:37 AM
 #3

I'm wondering:
1-How does the UTXO get stored eventually in the UTXOS set?
Is it in its we could say encrypted or obfuscated form, or what?
I mean no mention about public reveal to all, what if it's dust value for example?
Or how the continuous data analysis sites consider it? in what range of values?
It's stored in basically the same way Bitcoin stores UTXOs - the prevout with the corresponding script and blinded assets and values. This is taken directly from the transactions.

Thanks for the clarification of all, but then that leaves data analysis sites (all the sites that draw curves and perform analysis that depends on the BTC value of the UTXO like ratio of spending/creation, or even ratio of dust, with some wrong/misleading results?

Or do they know how to exclude the hidden value UTXOS?
Although, I don't think the script is stored in the same UTXO set file?
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October 24, 2021, 12:43:28 AM
 #4

Thanks for the clarification of all, but then that leaves data analysis sites (all the sites that draw curves and perform analysis that depends on the BTC value of the UTXO like ratio of spending/creation, or even ratio of dust, with some wrong/misleading results?
Given that Bitcoin doesn't have confidential transactions, no, they aren't wrong.

Although, I don't think the script is stored in the same UTXO set file?
They absolutely are as scripts are the most vital part of a UTXO. The script is what determines who is allowed to spend the UTXO.

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October 28, 2021, 05:27:27 PM
Merited by ABCbits (3), fillippone (3)
 #5

1-How does the UTXO get stored eventually in the UTXOS set?
Is it in its we could say encrypted or obfuscated form, or what?
I mean no mention about public reveal to all, what if it's dust value for example?
Or how the continuous data analysis sites consider it? in what range of values?

I'm going to answer how it can be done on a Mimblewimble model which can be thought of as state of the art Confidential Transactions. Yes, an output is just a Pedersen commitment so you can't see the amount.
Looking at the output, you can't tell if it's a dust value or not. One interesting fact about MW specifically is that you can get rid of dust attacks completely because the receiver is involved in transaction signing so you can't get a dust output without signing the transaction yourself.

2-What about the fees?
Most of the EQs are based on input= output, how do we put the fee and how will miners know a its value?
-Is this the case I previously encountered in a paper where a UTXO must be dedicated to the fee in each TX?
-Even though, miners should know the fee in advance to decide whether or not to select this TX, so how?

I'll be talking from the Mimblewimble point of view. You can put it as a metadata along with the signature. The signature itself can sign for the fees that come with the data so anyone can verify and the miner can add the missing fee amounts to themselves by creating a new pedersen commitment coinbase output.

Sorry if these are not helpful, but I only understand MW and don't really know the details of the original CT proposal.
Shymaa-Arafat (OP)
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October 29, 2021, 11:37:01 AM
 #6

I don't think mimblewimble or any other confidential Transaction protocol is currently applied in a standard way in Bitcoin.
(I think it is applied in other cryptocurrencies like Grin, Beam, and I think Tera I saw something in GitHub can't find the link now
https://coinmarketcap.com/alexandria/article/what-is-mimblewimble#mimblewible-s-future
Not sure it is still because flaws was discovered in 11/2019
content://com.google.android.apps.nbu.files.provider/2/4322
However, I'm not sure if mitigated or what.)
.
Frankly, not concerned or doing research in this RightNow, I was just worried of a certain relevance or contradiction that crossed my mind.

But I searched all the BIPs list and found no standards about confidential transactions
https://github.com/bitcoin/bips
In Wikipedia u will find it coloured for an easier scan Green for accepted, Red for rejected, Yellow for proposed no decision yet, not colored just a draft not proposed yet
https://en.m.wikipedia.org/wiki/Bitcoin_Improvement_Proposals
In Bitcoin wiki
https://en.bitcoin.it/wiki/Confidential_transactions
 it is said that Confidential TXs needs a soft fork that never happened.
Shymaa-Arafat (OP)
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November 09, 2021, 02:22:19 PM
 #7

I guess the part from min 30 maybe in this lecture gives an answer to uses of confidential TXs, the ≤ holds,..etc
https://youtu.be/yKa-KxY-YJk
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