delvingbitcoin

BIP352: PSBT support

BIP352: PSBT support

Original Postby andrewtoth

Posted on: June 20, 2024 20:29 UTC

The discussion revolves around a specific aspect of cryptocurrency transactions, particularly focusing on the security vulnerabilities associated with signing transactions using the SINGLE | ACP flag.

This method involves participants exchanging shares to generate a correct script, which is then signed by one party (A) using the SINGLE | ACP signature. The intention is for another party (B) to verify this output and sign it with ALL, ensuring the transaction's integrity. However, this process exposes a significant risk. Even if B signs the transaction as intended, it's possible for an external observer to modify the transaction by removing B's input and substituting their own. This manipulation could redirect the transaction output to an unintended destination, undermining the security of the funds involved.

The analysis suggests that using ACP (ANYONECANPAY) without absolute trust in all signing parties introduces a potential exploit. An outside observer could hijack the transaction by altering inputs after A has signed with ACP, regardless of B's subsequent actions. This vulnerability makes it evident that the SINGLE | ACP signing mechanism may not be secure in scenarios where there is any doubt about the trustworthiness of other signers involved in the transaction.

To mitigate such risks, the recommendation for users of silent payment systems is to avoid relying on the ACP flag unless complete confidence exists in all other parties' reliability and intentions. This advice underscores the importance of trust in the security framework of cryptocurrency transactions, especially when using advanced signing features like SINGLE | ACP. Despite the theoretical security measures in place, the practical exploitation of these mechanisms can lead to significant vulnerabilities if trust is misplaced.