CoinPool: A New Design To Scale Bitcoin And Improve Privacy

In June of 2020 we made you freaks alert of a CoinPool plan published by Antoine Riard and Gleb Naumenko that provided a precocious level overview of however they were reasoning a CoinPool should beryllium implemented. Fast guardant astir 2 years and the duo has released a achromatic paper that outlines successful item however their CoinPool protocol would beryllium implemented if it were imaginable today.

As a refresher, a CoinPool implementation would let galore users to person partial ownership implicit a azygous UTXO, which would beryllium an unthinkable boon to scalability. Even better, users would beryllium capable to marque instant off-chain transfers of that partial ownership. Eliminating the request to amend the idiosyncratic CoinPool ledger with an on-chain transaction. If possible, CoinPools would alteration billions of radical to assertion ownership to on-chain bitcoin successful the signifier of a portion of a UTXO, which would massively administer bitcoin ownership astatine the basal furniture implicit time.

What makes a CoinPool possible? In the design's existent signifier CoinPools leverage Merkle trees nested successful taproot addresses, perpetually updated partially signed bitcoin transactions, and a fewer OP codes: SIGHASH_GROUP, SIGHASH_ANYPREVOUT, and OP_MERKLESUB. The operation of the supra variables would alteration a covenant operation that makes CoinPools possible. Most importantly the quality to transportation partial UTXO ownership off-chain.

This wouldn't lone beryllium unthinkable for scalability and ownership organisation astatine the basal layer, it would besides bring astir amended privateness to bitcoin users.

However, it indispensable beryllium noted that a batch needs to hap for the CoinPool implementation Antoine and Gleb to adjacent beryllium possible. Mainly, a brushed fork, oregon aggregate brushed forks, to alteration immoderate of the OP codes that marque it possible. This is definite to instrumentality clip arsenic galore are inactive mentally recovering from the Taproot softfork that was activated past year. There is simply a important magnitude of discussion, proposals, reviews, debate, and much treatment needed to guarantee the desired OP codes are perfectly indispensable for the network.

With that said, your Uncle Marty is precise overmuch looking guardant to the treatment heating up arsenic accrued scalability and privateness portion preserving the decentralization of the distributed web is ever thing to strive for.