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From: Greg Sanders <gsanders87@gmail.com>
To: Matt Corallo <lf-lists@mattcorallo.com>,
	 Bitcoin Protocol Discussion
	<bitcoin-dev@lists.linuxfoundation.org>
Cc: Anthony Towns <aj@erisian.com.au>
Subject: Re: [bitcoin-dev] Unlimited covenants, was Re: CHECKSIGFROMSTACK/{Verify} BIP for Bitcoin
Date: Mon, 5 Jul 2021 21:51:25 +0800	[thread overview]
Message-ID: <CAB3F3DuSP5DUj5wLyP1_EC7hnv=THOYxRy0T9iK-FZzJKMJJhA@mail.gmail.com> (raw)
In-Reply-To: <5e694d37-ac49-3c24-26ee-ed2a5580d76d@mattcorallo.com>

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Funny AJ mentions the multisig idea, because I know for a fact it's being
used in certain permissioned systems in this exact way. Regulators will
dream up these ideas with or without more useful covenants!

On Mon, Jul 5, 2021 at 9:46 PM Matt Corallo via bitcoin-dev <
bitcoin-dev@lists.linuxfoundation.org> wrote:

> I find this point to be incredibly important. Indeed I, like several
> others, have historically been concerned with
> covenants in the unbounded form. However, as more and more research has
> been done in what they can accomplish, the
> weighting of such arguments naturally has to be reduced. More importantly,
> AJ's point here neuters anti-covanent
> arguments rather strongly.
>
> Matt
>
> On 7/5/21 01:04, Anthony Towns via bitcoin-dev wrote:
> > On Sun, Jul 04, 2021 at 09:02:25PM -0400, Russell O'Connor via
> bitcoin-dev wrote:
> >> Bear in mind that when people are talking about enabling covenants, we
> are
> >> talking about whether OP_CAT should be allowed or not.
> >
> > In some sense multisig *alone* enables recursive covenants: a government
> > that wants to enforce KYC can require that funds be deposited into
> > a multisig of "2 <recipient> <gov_key> 2 CHECKMULTISIG", and that
> > "recipient" has gone through KYC. Once deposited to such an address,
> > the gov can refus to sign with gov_key unless the funds are being spent
> > to a new address that follows the same rules.
> >
> > (That's also more efficient than an explicit covenant since it's all
> > off-chain -- recipient/gov_key can jointly sign via taproot/MuSig at
> > that point, so that full nodes are only validating a single pubkey and
> > signature per spend, rather than having to do analysis of whatever the
> > underlying covenant is supposed to be [0])
> >
> > This is essentially what Liquid already does -- it locks bitcoins into
> > a multisig and enforces an "off-chain" covenant that those bitcoins can
> > only be redeemed after some valid set of signatures are entered into
> > the Liquid blockchain. Likewise for the various BTC-on-Ethereum tokens.
> > To some extent, likewise for coins held in exchanges/custodial wallets
> > where funds can be transferred between customers off-chain.
> >
> > You can "escape" from that recursive covenant by having the government
> > (or Liquid functionaries, or exchange admins) change their signing
> > policy of course; but you could equally escape any consensus-enforced
> > covenant by having a hard fork to stop doing consensus-enforcement (cf
> > ETH Classic?). To me, that looks more like a difference of procedure
> > and difficulty, rather than a fundamental difference in kind.
> >
> > Cheers,
> > aj
> >
> > [0] https://twitter.com/pwuille/status/1411533549224693762
> >
> > _______________________________________________
> > bitcoin-dev mailing list
> > bitcoin-dev@lists.linuxfoundation.org
> > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
> >
> _______________________________________________
> bitcoin-dev mailing list
> bitcoin-dev@lists.linuxfoundation.org
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
>

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  reply	other threads:[~2021-07-05 13:51 UTC|newest]

Thread overview: 31+ messages / expand[flat|nested]  mbox.gz  Atom feed  top
2021-07-03 16:31 [bitcoin-dev] CHECKSIGFROMSTACK/{Verify} BIP for Bitcoin Jeremy
2021-07-03 17:50 ` Russell O'Connor
2021-07-03 18:30   ` Jeremy
2021-07-03 20:12     ` Russell O'Connor
2021-07-04 17:30       ` Jeremy
2021-07-04 19:03         ` Russell O'Connor
2021-07-06 17:54           ` Jeremy
2021-07-06 18:21             ` Russell O'Connor
2021-07-06 18:53               ` Jeremy
2021-07-04  1:13 ` David A. Harding
2021-07-04 18:39   ` Jeremy
2021-07-04 20:32     ` [bitcoin-dev] Unlimited covenants, was " David A. Harding
2021-07-04 20:50       ` Billy Tetrud
2021-07-05  0:50       ` ZmnSCPxj
2021-07-05  1:02         ` Russell O'Connor
2021-07-05  2:10           ` Russell O'Connor
2021-07-05  2:39             ` ZmnSCPxj
2021-07-05  5:04           ` Anthony Towns
2021-07-05 13:46             ` Matt Corallo
2021-07-05 13:51               ` Greg Sanders [this message]
2022-02-03  6:17               ` Anthony Towns
2021-07-05 17:20         ` Russell O'Connor
2021-07-06  6:25           ` Billy Tetrud
2021-07-06 10:20             ` Sanket Kanjalkar
2021-07-06 11:26             ` Russell O'Connor
2021-07-06 18:36               ` Jeremy
2021-07-07  4:26           ` ZmnSCPxj
2021-07-07  6:12             ` Billy Tetrud
2021-07-07 13:12             ` Russell O'Connor
2021-07-07 14:24               ` Russell O'Connor
2021-07-07 17:26                 ` Jeremy

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