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committedNov 30, 2014
Fix footnote refs, adjust headings.
Signed-off-by: Rusty Russell <rusty@rustcorp.com.au>
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‎_posts/2014-11-29-Pettycoin-Revisted-Part-I:-UTXO-Commitments.md

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compactly to someone who doesn't know every transaction: "you can't
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prove a negative".
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### Pettycoin's Solution ###
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## Pettycoin's Solution ##
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The miner inserts an index for each input into the block alongside the
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transaction: this says where the input transaction is. This
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block), and the transaction where the input ref said it would be (with proof).
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You still need to detect double-spends in the traditional way, though.
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### The UTXO Committment Solution ###
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## The UTXO Committment Solution ##
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This is a bit more complicated, but it does more. The scheme has
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several parts, the first of which is UTXO Committments; a seemingly
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and
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[Peter Todd has an implementation](https://github.com/petertodd/python-merbinnertree)).
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#### Background: UTXO Commitments in A Nutshell ####
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### Background: UTXO Commitments in A Nutshell ###
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The important part of bitcoin is the Unspent Transaction Outputs
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(UTXO): stuff which can still be used. As you go through the blocks,
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The UTXO commitment scheme opens the door to "assisted transactions"
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where you supply a transaction along with UTXO proofs that all its
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inputs are unspent as of the last block. A recipient which knows
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only the block headers[^utxo-not-in-hdrs] can confidently accept this as an
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only the block headers<sup>[1](#footnote-1)</sup> can confidently accept this as an
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unconfirmed transaction.
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In fact, a miner can actually mine this without any extra checks:
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and (2) if you can get the attention of the right bitcoin wizards,
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your own sidechain project will be greatly improved :)
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[^utxo-not-in-hdrs] Bitcoin is unlikely to add the UTXO hash to the
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<a name="footnote-1">[1]</a> Bitcoin is unlikely to add the UTXO hash to the
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80-byte header. Instead, it would become a compulsory part of the
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coinbase, is the order of 100 bytes long, and you need
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log2(num-transactions) 32 byte hashes to attach it to the header. But

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