Given two inputs of value: 10, 11
And two outputs of value 31, -10
The Pedersen commitment would look like:
Let b + c - d - e = k (10G + bH + 11G + cH) - (31G + dH + -10G + eH) = 0G + kH
Without range proofs, this Pedersen commitment would look valid. How would a bad actor, then use this in another transaction to create money out of thin air?
What I thought was that he would then do:
Input = -10
Output = 10
But I am not so sure, it is this simple. Could I get some clarification on the amount that would be created out of thin air also, as I read somewhere that the amount created would be 11 in this case.