Stolen Bitcoin? Anti-Theft Feature Gains Second Life On Sidechains
At its central, bitcoin is about providing users enhanced control of their money. Often regarded as “programmable money”, bitcoin owns scripts that restrict how upcoming BTC transactions can be expended. One such script guarantees the right person is spending the bitcoins by examining if the appropriate signature was used prior to unlocking and transferring the funds.
Termed as “covenants”, the novel style of scripts theoretically opens up potentials for how bitcoins users could control, or limit, spending of their money — perhaps for their protection.
When inquired what he thinks of the latest covenant work, Eyal suggested it was possibly a boon to BTC users who might be concerned for losing their bitcoins or else having them negotiated or stolen.
Eyal said CoinDesk: “It is also about to raise user-side security in a manner that is invaluable.”
Extending bitcoin’s scripts
The concept is notable as a script that can restrict how bitcoins can be spent has not been applied in bitcoin previously, a fact distinguished by Eyal.
It is worth noticing that bitcoin’s scripting system is presently very simple for sake of security. There are not limitless rules in bitcoins currently because new additions can be possibly dangerous and developers suggest that they take time to examine.
Bitcoin startup blockstream has been employed on these interoperable blockchains for testing with new features that could possibly be included to bitcoin since the month of June of last year, and this is an illustration of how such new chains can be utilised to test latest features.
These latest proposed opcodes may function as the foundations for novel functionalities, ones that could also come to aid stop bitcoind exchanges and users from mislaying stolen funds.
But though blockstream is running with the concept, it started with researchers at Cornell. In month of February, researchers Ittay Eyal, Malte Möser, and Emin Gun Sirer projected the concept of bitcoin vaults in which users can pull bitcoin back in the situation of a hack.
Whereas blockstream confirmed vaults as a potential use case, there may be additional future uses for the covenant scripts, involving lending. When inquired if the new scripts were secure, BTCcore developer Greg Maxwell answered: “Trivially so if applied appropriately.”