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I would say space efficiency is of secondary concern as we can expect vault users as a class of on-chain space demand to be in the higher ranks of blockspace “buying power”. Few other thoughts on vault design, more minor points. That said, I think this security advantage is only relevant in the context of recursive design, where the partial unvault sends back the remaining funds to vault UTXO (not the design proposed here). It should also achieve the same than a key-deletion design, as long as all the vault’s stakeholders are participating in the multisig, they can assert that flow paths are matching their spending policy. Partial unvault authorizations can come with a reduced set of verifications, at lower operational costs. IMO, it’s introducing the idea of privileges in the coins custody : you set up the flow paths once for all at setup with the highest level of privilege and then anytime you do a partial unvault you don’t need the same level of privilege. I think you might need to introduce an intermediary, out-of-chain protocol step where the unvault broadcast is formally authorized by the vault stakeholders.
Don’t you also need the endpoint scriptPubkeys (, ), the amounts and CSV value ? Given the amounts at stake for which vaults are designed, errors are likely to be far more costly than the ones we see in the deployment of payment channels. I think the remaining presence of trusted hardware in the vault design might lead one to ask what’s the security advantage of vaults compared to classic multisig setup. I think this design gets you the benefit to correct or adapt if all the multisig participants agree on. I think the main concern I have with any hashchain-based vault design is the immutability of the flow paths once the funds are locked to the root vault UTXO. Such websites have unlimited information to be subjected under critical scrutiny. Their period of operation gives a good overview of how long they have stayed legit. Many Bitcoin slots also have graphical themes from popular cartoons or from movies. By doing so, you can collect your winnings almost instantly. If a distrusted party can spend the anchor output it’s easy to block the RBF with a pinning. I’m not sure if the usage of anchor output is safe for any vault deployment where the funds stakeholders do not trust each other or where the watchtowers are not trusted.