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Bitcoin PIPEs: Covenants on Bitcoin Without Soft Fork

Bitcoin PIPEs: Covenants on Bitcoin Without Soft Fork

Original Postby GaloisField2718

Posted on: October 22, 2024 13:52 UTC

The inquiries revolve around the intricacies of implementing Zero-Knowledge Proofs (ZKPs) within a PIPE setup, specifically focusing on the verification processes and the integration of ZKPs with covenants in blockchain technology.

The discussion opens with a question about the creation of ZKPs to prove computation execution before covenants are applied, highlighting that this verification occurs off-chain. It then explores the possibility of implementing a ZKP covenant as a PIPE address, which could potentially allow for on-chain verification of setups for other PIPE covenants, transitioning from an off-chain to an on-chain verification process.

Further, the email touches upon the technical mechanics of pushing ciphertext in a blockchain environment, questioning whether it follows a specific sequence of operations or if it involves commit-reveal mechanisms with data pushed at the end. This point delves into the granularity of how data encryption and transmission are handled within the proposed system.

Another significant aspect raised is the paper's assertion that CAT PIPEs should employ an optimistic verification of commitment schemes, questioning why this approach is recommended exclusively for CAT PIPEs. This leads to concerns about resolving disputes in transactions that have already been executed on-chain, suggesting a need for mechanisms to address potential conflicts post-transaction.

Lastly, there's curiosity regarding the practical application of the theoretical concepts discussed in the paper, specifically asking whether there has been any attempt to implement the algorithms outlined. This inquiry underscores a desire to understand the feasibility and real-world applicability of the proposed systems and methodologies beyond their theoretical foundation.