Matt Corallo proposed a BIP for coordinating Bitcoin funds over every week in the past. For various causes, utilizing protocols just like the Lightning Community for Bitcoin funds has all the time offered some challenges when it comes to on-chain and off-chain coordination. In relation to digital methods like electronic mail or fee methods like Paypal or Cashapp, individuals are very used to the idea of a single static identifier. If you wish to electronic mail John, simply ship the e-mail “john@[insert domain]”. If you wish to ship cash to John on Cashapp, simply pay @John on Cashapp.
This can be a consumer expertise that individuals are conversant in, and in the case of ingrained consumer behaviors and expectations of issues, driving substantial or drastic adjustments of their conduct could be very troublesome. In the event you give them a software that they want to do that, you are going to create a major stage of friction and can in all probability simply disincentivize most individuals from utilizing the software.
On-chain funds run into issues with this expectation, not as a result of you may’t have a static identifier (a single deal with), however due to the privateness implications of publishing a single on-chain deal with and having everybody you work together with use that deal with. for you. It places your whole fee historical past and token possession in public view for everybody. In the event you hardly ever obtain cash every now and then, i.e. if you’re getting paid for work or settling a bar invoice with somebody, then merely opening your pockets and producing a brand new fee deal with is not a burden in any respect. Nevertheless, in the event you obtain cash repeatedly, particularly in the event you do not ask for fee instantly, that may create a severe burden.
This is the reason instruments like BTCPay Server had been created, to decrease the barrier of entry for individuals to launch the infrastructure wanted to mechanically obtain funds with out having to do naive issues like publish an deal with to be reused by everybody who pays you . Nevertheless, this requires operating an always-online server. Whereas the venture considerably lowers the required understanding threshold, it’s nonetheless a heavy burden for customers who simply need to passively obtain funds.
The identical is true for Lightning, besides worse. Invoices are for single fee solely. In contrast to on-chain addresses, which might be reused, though it is a horrible apply, Lightning invoices can’t be used. As soon as an bill has been paid or expired, any fee makes an attempt might be rejected by the related Lightning node. This dynamic led to the creation of the LNURL specification and the Lightning addresses constructed on high of it. LNURL is a protocol for connecting to an HTTP server through a static IP that may be shared as soon as to get the precise Lightning Bill from the server for fee. On this foundation, Lightning addresses are an LNURL-based naming scheme that’s structured like an electronic mail deal with: John@[domain of LNURL server].
All these options have drawbacks. Along with the Bitcoin pockets or Lightning node, it’s essential to run an extra software program (HTTP server) that’s all the time on-line; making a request to the BTCPay/LNURL server leaks the sender’s IP deal with to the recipient; depends on TLS certificates Licensed unit.
Simply use DNS
HTTP server instruments similar to LNURL, when used with Lightning Handle, use domains to resolve connections to the HTTP server. Likewise, BTCPay servers are configured with domains as an alternative of utilizing authentic IP addresses. Matt’s perception is, why not simply remove the dependence on HTTP and use the Area Title System itself?
DNS permits you to affiliate a TXT file with a given area identify, making a small human (or machine) readable file that may be queried from a DNS server. Mixed with Area Title System Safety Extensions (DNSSEC), DNS TXT information present a mechanism for querying fee info with out the overhead and burden of operating an HTTP server, and supply extra flexibility and openness. DNSSEC supplies various instruments for cryptographically signing DNS entries, together with TXT information, utilizing DNS keys inherent within the DNS hierarchy. This ensures that the TXT file you might be querying is a file signed by the native root server/key and distributed to lower-level DNS servers.
This illustrates the true good thing about DNS as a method of acquiring fee information: Say goodbye to the requirement to run an HTTP server. TXT information can encode on-chain Bitcoin addresses (though the BIP particularly advises towards this in the event you can not repeatedly rotate new addresses to forestall deal with reuse), however extra importantly, they’ll additionally comprise BOLT 1 2 Lightning Offers.
These information might be obtained from any DNS server, your individual native server, your ISP, and even public servers like Google or Cloudflare. Ranging from this fundamental level, one of many disadvantages of HTTP-based options is solved; you now not reveal your IP deal with to the particular person you are attempting to pay. Now, in the event you use your ISP’s DNS or public servers (similar to Google or Cloudflare) with out a VPN or Tor, you’ll reveal your IP deal with to them; because of this, BIP explicitly encourages utilizing a VPN or Tor helps DNS decision.
Combining this proposal with BOLT 12 eliminates the necessity to run helper software program, which is a really actual safety subject for unskilled customers, and permits solely possession of the area to present customers the whole lot they want, Give them a mechanism to find fee info via easy guide operations. Human-readable identifier. BOLT 12 doesn’t require an HTTP server, handles precise bill supply instantly over the Lightning Community through an onion routing connection, and helps Gives, a static identifier that can be utilized to seek out onion routing to that Lightning node. The issue is that the quote is encoded as an enormous random string, similar to the bill itself, which makes it a horrible human-readable/usable identifier besides through the use of a QR code or copying and pasting.
By storing the quote in a DNS TXT file, customers can merely enter somebody’s area into the pockets to make a fee, which permits the pockets to acquire the TXT file, acquire the BOLT 12 quote, after which make the fee. They needn’t host any servers or run any software program aside from Lightning nodes, the DNS system handles the whole lot for them, simply host their BOLT 12 and discover who they’ll discover for customers who need to pay.
Is that this a very trustless system? no. Is it significantly better than HTTP-based methods? Completely. The issue with this sort of query is that most individuals have sure expectations about consumer expertise and conduct as a result of digital methods are speculated to work of their minds. If this consumer expertise is just not replicated, numerous individuals will solely use options that do meet consumer expertise expectations. Given this actuality, when attempting to carry Bitcoin throughout the confines of those consumer expertise expectations, the design objective ought to be to fulfill these consumer wants with minimal belief insertion, minimal consumer burden, and minimal potential. Lack of privateness in new methods. I believe Matt’s BIP meets all of those necessities in comparison with present options.
