New Multi Signature Protocol MuSig2 Coming to Bitcoin Lightning Network

Alex Bosworth, a developer at Lightning Labs, announced that MuSig2, the evolution of the multi-signature protocol he designed, could be added to Bitcoin’s Lightning Network (LN) soon.

“The MuSig2 update is already in the final review for the Lightning Loop,” Bosworth commented at a tweetwhere he also mentioned some advantages that this tool will bring to LN after activating it in Lightning Loop.

The Lightning Loop is a kind of bridge that connects the Bitcoin mainnet to the Lightning Network. east Allows you to add BTC (ring in(and a BTC mine)ring out) for the Lightning Network’s payment channelin order to balance the ability to send and receive money between the nodes it links.

MuSig2, on the other hand, is a multiple cryptographic signature scheme It allows generating a public key from the private keys of multiple signers. It is worth noting that the public key, along with its private key, is how Bitcoin addresses are generated to send, receive and store BTC.

Multi-signature public keys will be the Bitcoin equivalent of shared bank accounts In which the signature of the owners is required to access the funds of the aforementioned account. In the case of MuSig2, thanks to its implementation of Schnorr signature technology, its protocol requires only two rounds; Whereas the previous version, MuSig1, required an earlier round (three in total) to ensure the safety of operations.

Tabroot Effects on Bitcoin

Although the word complement usually has a negative connotation when talking about diseases or conflicts, in this case, the sequels brought by the addition of Taproot to the Bitcoin protocol are positive.

When Taproot finally got to Bitcoin, it was done by the Schnorr companies. This cryptographic signature generation algorithm is the basis for generating multi-signature public keys. These signatures, in addition to being more diverse, are also more secureWhere it is difficult to forge or coercion.

Advantages of MuSig2 on the Bitcoin Lightning Network

The first advantages that MuSig2 could mean for LN would be Reduce the space occupied by submarines in the series by 33% When doing a scan from LN to the main network. sweep (from english Survey) is the name given to a process in which all funds are withdrawn from one wallet to another. In this case, it will be necessary to extract the funds received by one of the Lightning Network nodes to a Bitcoin address.

Underwater swaps is a protocol that uses a smart contract to exchange tokens or cryptocurrencies from a title in the string (on the chain) for one outside the string (off the chain). The author of this protocol is Alex Bosworth himself. The fact that they do not need a trusted third party for this type of operation makes them an ideal tool for adding and withdrawing funds from the LN payment channel.

Space reduction due to the use of MuSig2 When embarking on ring out Leads to a decrease in commissions for underwater exchanges.

Taproot is in the Bitcoin Lightning Network with MuSig2

Another benefit that comes with adopting MuSig2 in LN is A higher level of privacy in exchanges or swaps. This is due to the removal of the HTLC pre-image from the blockchain, which is part of the exchange process.

Here you can see the progress of creating the base code so that the HTLC pre-image is not exposed. Source: Alex Bosworth / GitHub

HTLC is the name of a type of smart contract used in atomic and submarine exchanges between block chains. saying The contract locks in the money to be exchanged for two conditions: hash and time.

If both parties comply with the HTLC contract, the transaction is allowed to proceed. On the other hand, if the time limit expires before both parties prove that they can fulfill the contract, then the money goes back to the addresses you sent. In other words, no one keeps the other’s money.

The problem with HTLC’s pre-image is that it can be reused for new nodes, which affects the privacy of each node participating in the payment path. To remove it, Bosworth uses Taproot, an update that came to Bitcoin in November 2021. P2TR or Pay for Taprootas it is also known, includes a range of technical advances for Bitcoin privacy and scalability.

After removing the HTLC preimage it makes this type of contract more similar to PTLC, A type of smart contract mentioned earlier in the CriptoNoticias article about the improvements that Taproot can bring to Bitcoin.

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