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<ECH> Hi. Is this the appropriate channel to ask a Q about confidential transactions?
<ECH> From what I understand, a Confidential Transaction Address (CTA) is created via Base58Check (BTC address + blindingkey).
<ECH> If this is the case, couldn’t anyone who sees that your CTA received a tx simply find the blinding key cuz base58 is bidirectional? Then use that to audit your address?
<ECH> I feel like the answer to that is I need the private key to the blinding key to properly audit the tx. But I'm not sure why.
<maaku> ECH: this is the correct channel to discuss confidential transaction in, generally
<maaku> there is no address standard for confidential transactions not even a strawman proposal as far as I'm aware
<maaku> but base58 is irrelevant. the information in the address is USED to create the transaction output paying you, but it is not relayed in the transaction itself
<maaku> and no one knows your private key so, they can't recover the blinding factor from the ecdh commitment
<ECH> maaku: thanks for responding!
<maaku> ECDH is performed between the public key given in the CT address and an ephemeral key generated by the sender. the ephemeral key is committed to in the transaction, but to everyone else it might as well be random gobbledigook
<ECH> Ah IC. I think that's the part I'm missing.
<maaku> sender picks random number k, and random ephemeral secret key d. they put k*d*G in the transaction. the blinding factor is a hash of the resulting point
<maaku> *is a hash of the point resuling from k*d*(receiver public key)
<maaku> which the receiver calculates as k*(receiver's private key)*(sender's public key)
<ECH> and in this it seems as if the blinding factor is built into the CTA.
<maaku> no one else can do this without the receiver's (blinding) private key
<ECH> Ah
<maaku> correction, receiver calculates as (receiver's private key) * (committed ecdh value) [where committed value was k*d*G]
<maaku> too late for me to explaining crypto :)
<ECH> Haha
<ECH> Was trying to think through that process.
<ECH> That was very helpful. Thanks Maaku
<maaku> ECH: (1) that link is blockstream documentation. blockstream uses base58 for the keys in their linquid product, but there isn't really any standard or strawman proposal that i'm aware
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<maaku> i can tell you the people who designed that would not recommend it for broader use; it lacks all the niceties that bech32 addresses have
<maaku> but the bech32 polynomial's properties break down for addresses of CT length. so a new polynomial needs to be found and I don't think that work has been completed yet
<ECH> Yea. I was under the impression that they were trying it on liquid as a test to then possibly propose to core. I may have been mistaken.
<maaku> ECH: (2) that link is about exporting and importing CT *blinding keys* not addresses
<ECH> You know what the disconnect was for me? That I was treating CTA like standard BTC addresses.
<ECH> everything makes sense now
<ECH> So the CTA is what goes in blockchain as part of the UTXO. And it should be unique as the sender is creating the blinding factor.
<ECH> combined with your address.
<ECH> Dang okay. That works.
<maaku> So the procedure on that page is exporting private information which is all you'd need to see the amounts. but an address alone wouldn't help you
<ECH> Got it.
<maaku> CT addresses *are* a bit like bitcoin addresses. They have the information you need to send coins to the recipient.
<ECH> Yea. But the static property is what tripped me up
<ECH> or thinking they were static.
<maaku> I'm not sure what you mean by non-static?
<ECH> The CTA is a one time use address that's generated by a random number + an address right?
<ECH> So the random # should change.
<ECH> unless the sender repeatedly sent it to the same address and used the same # over and over again for multiple tx's.
<maaku> No to the details of that. Yes an address *should* be single use. But the "blinding" portion of an address is static in current CT implementations afaik
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<maaku> (static to the wallet, and which is actually a flaw that should be fixed if it isn't already)
<maaku> the CT address is a tuple of {blinding public key, <script details>}
<maaku> The blinding public key is not specific to the transaction, although that's probably good policy. It doesn't contain the blinding factor / nonce.
<maaku> The nonce is committed to in the output itself, within the transaction.
<maaku> A CT transaction output is {Pedersen commitment, ecdh nonce, scriptPubKey}
<maaku> The commitment is v*G+k*H; k is calculated as H(d*ecdh), where d is the secret key corresponding to the blinding public key in the address
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<maaku> So what's in the address is the information necessary for the sender to make the transaction. The transaction contains the information necessary for the recipient to receive it.
<maaku> ECH: that clear things up?
<ECH> Yea. A ton.
<ECH> I like how you broke down the CTA and CT transaction.
<ECH> that was helpful
<ECH> I was thinking about trying to write up an ez guide to CT for newbs.
<maaku> That would be much appreciated!
<ECH> Not sure that's likely anymore though.
<ECH> Haha
<ECH> I'm going to have to do some more reading.
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<maaku> When a wallet sees a transaction with a a script it recognizes as its own (or an script it knows) it completes the ECDH, hashes to get the blinding factor, and attempts to rewind the rangeproof, which it can do if the blinding factor is correct
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<maaku> For mimblewimble the story isn't as good.. all outputs have the same script (OP_TRUE), so you have to try unwinding using any keys you have
<maaku> I actually don't know if there's been a better soultion worked out for this.. would be interested if anyone else knows.
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<andytoshi> no, but we got trial-rewinding down to 3.5 microseconds on my laptop
<andytoshi> or 280k outputs per second
<andytoshi> oh, that does not include the ECDH. you'd need to use some symmetric key to actually get that performance.
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<andytoshi> oh, but in MW you're always encrypting to yourself, so you would do this
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<instagibbs> Also afaik, all CT implementations use blinding keys which are static with respect to the scriptPubKey only.
<instagibbs> At least Elements/Liquid does
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