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| 1 | +# blinded signature and taproot signing |
| 2 | + |
| 3 | +## motivation |
| 4 | + |
| 5 | +The `SwapTx` will in most trades not be broadcasted to the blockchain. Therefore |
| 6 | +Alice (the Seller, which creates the `SwapTx`) may not want the buyer to learn |
| 7 | +the address used in the `SwapTx`. Since Bob (the buyer) needs to sign |
| 8 | +the `SwapTx` this can only be done by letting him |
| 9 | +blindly sign the transaction. |
| 10 | + |
| 11 | +## basics of signing with key spends |
| 12 | + |
| 13 | +When signing with the internal key in taproot transaction where there are |
| 14 | +taproot script, |
| 15 | +but we want to spend with the single internal key. For that we need to compute |
| 16 | +the signing key $q$ |
| 17 | +which actually does the signature taking into account the merkle |
| 18 | +root of the scripts. |
| 19 | + |
| 20 | +$$q = p + H_{TapTweak}( P ~||~ m)$$ |
| 21 | + |
| 22 | +$$\begin{aligned} |
| 23 | +\text{where}~~~~~~~~~~& \\ |
| 24 | +p &~~~~\text{is the internal key} \hspace{1000pt}\\ |
| 25 | +P = p \cdot G &~~~\text{ is the internal public key} \\ |
| 26 | +q &~~~~\text{is the tweaked private key, the key for the signature.}\\ |
| 27 | +m &~~~~\text{is the merkle root of all scripts (if there are any)}\\ |
| 28 | +\end{aligned} |
| 29 | +$$ |
| 30 | + |
| 31 | +This effectively means that the signing key is dependent on the internal key and |
| 32 | +the output scripts. |
| 33 | + |
| 34 | +The $sighash$ is actually calculated from the transaction data (and other stuff) and is used |
| 35 | +as input for the schnorr signature. |
| 36 | + |
| 37 | +## blinded signature |
| 38 | + |
| 39 | +Bob needs to make the signature for the `SwapTx`. Alice could send the |
| 40 | +receiver address for the `SwapTx` and Bob could construct the `SwapTx`, then the |
| 41 | +$sighash$ and then sign with the signing key $q$. But Alice doesn't want him to |
| 42 | +learn the address, so she will only send the $sighash$ to Bob. |
| 43 | + |
| 44 | +## possible attack |
| 45 | + |
| 46 | +Since Bob is not knowing what he signs, Alice could let him sign any transaction. |
| 47 | +The transaction is signed with the signing key $q$ by Bob and therefore |
| 48 | +is limited only by 2 conditions: |
| 49 | + |
| 50 | +- the internal Key (which $q'$) |
| 51 | +- the outputs scripts |
| 52 | + |
| 53 | +The `DepositTx` and The `WarningTx` both have an output with $Q'$ as internal pubkey. |
| 54 | +So Alice could use the blinded signature for the `WarningTx` instead of the ``DepositTx``. |
| 55 | +The only thing preventing her to do so is if the scripts of `DepositTx Output 1` |
| 56 | +and `WarningTx Output 0` and actually different. |
| 57 | + |
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