1

Is there any transaction fee for Confidential Transactions in the Liquid Network?

In the UTXO model, Alice has 10 btc. She sends 1 btc to Bob, 8.999 btc as return change, and 0.001 as fee.

Input :  10     btc (Alice)  
Outputs:  1     btc (Bob)  
          8.999 btc (Alice)

The remaining balance of 0.001 is considered the fee but not recorded as a transaction output.

Is this the same for Confidential Transaction?

Input : C1 = Commit (10btc)
Output: C2 = Commit (1 btc)
        C3 = Commit (8.999 btc)
        C4 = Commit (0.001 btc)

C1 = C2 + C3 + C4

If C4 is not there, then can we assume C4 = C1 - C2 - C3.

But is there any coinbase tx in Liquid to take the C4 fee? I 'm confused.

2

In Confidental Transactions, like they are implemented in Blockstream Liquid, transactions have an explicit (plain text) fee field, and the rule is that sum(output_commitments) + commit(fee) = sum(input_commitments).

Without clear text fee field, miners indeed would not be able to claim the difference between outputs and inputs.

1
  • Thank You. there are too many followup questions on this! I will post another question.
    – Cisco Mmu
    Jul 10 at 3:55
2

Fees in liquid are explicitly defined as an output, as describing them as the deficit between input and output is impossible when the values are unknown to the validator.

1
  • Thank You. there are too many followup questions on this! I will post another question.
    – Cisco Mmu
    Jul 10 at 3:57

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.