From cf8233d39e1ec7bef0d6b1d26ff5d60563ef4604 Mon Sep 17 00:00:00 2001
From: Anthony Towns <aj@erisian.com.au>
Date: Wed, 25 Sep 2019 14:14:14 +1000
Subject: separate p2sh wrapped security rationale

---
 bip-taproot.mediawiki | 4 ++--
 1 file changed, 2 insertions(+), 2 deletions(-)

(limited to 'bip-taproot.mediawiki')

diff --git a/bip-taproot.mediawiki b/bip-taproot.mediawiki
index 7a81949..64d8b94 100644
--- a/bip-taproot.mediawiki
+++ b/bip-taproot.mediawiki
@@ -42,7 +42,7 @@ As a result we choose this combination of technologies:
 * As Schnorr signatures also permit '''batch validation''', allowing multiple signatures to be validated together more efficiently than validating each one independently, we make sure all parts of the design are compatible with this.
 * Where unused bits appear as a result of the above changes, they are reserved for mechanisms for '''future extensions'''. As a result, every script in the Merkle tree has an associated version such that new script versions can be introduced with a soft fork while remaining compatible with bip-taproot. Additionally, future soft forks can make use of the currently unused <code>annex</code> in the witness (see [[#Rationale]]).
 * While the core semantics of the '''signature hashing algorithm''' are not changed, a number of improvements are included in this proposal. The new signature hashing algorithm fixes the verification capabilities of offline signing devices by including amount and scriptPubKey in the digest, avoids unnecessary hashing, uses '''tagged hashes''' and defines a default sighash byte.
-* The '''public key is directly included in the output''' in contrast to typical earlier constructions which store a hash of the public key or script in the output. This has the same cost for senders and is more space efficient overall if the key-based spending path is taken. <ref>'''Why is the public key directly included in the output?''' While typical earlier constructions store a hash of a script or a public key in the output, this is rather wasteful when a public key is always involved. To guarantee batch verifiability, ''q'' must be known to every verifier, and thus only revealing its hash as an output would imply adding an additional 32 bytes to the witness. Furthermore, to maintain [https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2016-January/012198.html 128-bit collision security] for outputs, a 256-bit hash would be required anyway, which is comparable in size (and thus in cost for senders) to revealing the public key directly. While the usage of public key hashes is often said to protect against ECDLP breaks or quantum computers, this protection is very weak at best: transactions are not protected while being confirmed, and a very [https://twitter.com/pwuille/status/1108097835365339136 large portion] of the currency's supply is not under such protection regardless. Actual resistance to such systems can be introduced by relying on different cryptographic assumptions, but this proposal focuses on improvements that do not change the security model. Note that using P2SH-wrapped outputs only have 80-bit collision security. This is considered low, and is relevant whenever the output includes data from more than a single party (public keys, hashes, ...). </ref>.
+* The '''public key is directly included in the output''' in contrast to typical earlier constructions which store a hash of the public key or script in the output. This has the same cost for senders and is more space efficient overall if the key-based spending path is taken. <ref>'''Why is the public key directly included in the output?''' While typical earlier constructions store a hash of a script or a public key in the output, this is rather wasteful when a public key is always involved. To guarantee batch verifiability, ''q'' must be known to every verifier, and thus only revealing its hash as an output would imply adding an additional 32 bytes to the witness. Furthermore, to maintain [https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2016-January/012198.html 128-bit collision security] for outputs, a 256-bit hash would be required anyway, which is comparable in size (and thus in cost for senders) to revealing the public key directly. While the usage of public key hashes is often said to protect against ECDLP breaks or quantum computers, this protection is very weak at best: transactions are not protected while being confirmed, and a very [https://twitter.com/pwuille/status/1108097835365339136 large portion] of the currency's supply is not under such protection regardless. Actual resistance to such systems can be introduced by relying on different cryptographic assumptions, but this proposal focuses on improvements that do not change the security model.</ref>
 
 Not included in this proposal are additional features like new sighash modes or opcodes that can be included with no loss in effectiveness as a future extension. Also not included is cross-input aggregation, as it [https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2018-March/015838.html interacts] in complex ways with upgrade mechanisms and solutions to that are still [https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2018-October/016461.html in flux].
 
@@ -55,7 +55,7 @@ The notation below follows that of bip-schnorr. This includes the ''hash<sub>tag
 === Script validation rules ===
 
 A Taproot output is a native SegWit output (see [https://github.com/bitcoin/bips/blob/master/bip-0141.mediawiki BIP141]) with version number 1, and a 32-byte witness program.
-The following rules only apply when such an output is being spent. Any other outputs, including version 1 outputs with lengths other than 32 bytes, or P2SH-wrapped version 1 outputs, remain unencumbered.
+The following rules only apply when such an output is being spent. Any other outputs, including version 1 outputs with lengths other than 32 bytes, or P2SH-wrapped version 1 outputs<ref>'''Why is P2SH-wrapping not supported?''' Using P2SH-wrapped outputs only provides 80-bit collision security due to the use of a 160-bit hash. This is considered low, and becomes a security risk whenever the output includes data from more than a single party (public keys, hashes, ...).</ref>, remain unencumbered.
 
 * Let ''q'' be the 32-byte array containing the witness program (the second push in the scriptPubKey) which represents a public key according to bip-schnorr.
 * Fail if the witness stack has 0 elements.
-- 
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