Probabalistic Payments in Bitcoin using OP_SIZE

I designed a mechanism that allows for probabilistic payments in Bitcoin.

The foundation of the mechanism is sane, where it veers out of “sanity” is in the attempts to get it to work well off-chain.

I originally wrote this paper on November 26th, 2015, and circulated it among a few colleagues. I think this is the first use case of OP_SIZE to implement XOR fair coin flipping, although Secure Multiparty Computations on Bitcoin has similar elements and it was discussed on IRC in #bitcoin-wizards that OP_SIZE might enable probabilistic payments, but not specifically.

I am first posting it on my website as of March 11th, 2017.

full text here