That is the second article in a collection deep diving into particular person covenant proposals which have reached some extent of maturity meriting an in-depth breakdown.
CHECKSIGFROMSTACK (CSFS), put ahead by Brandon Black and Jeremy Rubin with BIP 348, shouldn’t be a covenant. As I stated within the introductory article to this collection, among the proposals I’d be masking aren’t covenants, however synergize or interrelate with them in a roundabout way. CSFS is the primary instance of that.
CSFS is a quite simple opcode, however earlier than we undergo the way it works let’s take a look at the fundamentals of how a Bitcoin script really works.
Script is a stack based mostly language. That implies that knowledge is “stacked” collectively on high of one another on the stack, and operated on by eradicating an merchandise from the highest of the stack to function on based mostly on what an opcode does, both returning the information or a end result from it to the highest of the stack.
There are two elements of a script when it’s finally executed and verified, the “witness” offered to unlock the script, and the script included within the output being spent. The witness/unlocking script is “added” to the left facet of the locking script, after which every factor is added to (or operates on) the stack one after the other left to proper. Take a look at this instance (the “|” marks the boundary between the witness and script):
1 2 | OP_ADD 3 OP_EQUAL
This instance script provides the worth “1” to the stack, then the worth “2” on high of that. OP_ADD takes the highest two parts of the stack and provides them collectively, placing the end result again on to the stack (so now all that’s on the stack is “3”). One other “3” is then added to the stack. The final merchandise, OP_EQUAL, takes the highest two objects of the stack and returns a “1” to the stack (1 and 0 can symbolize True or False in addition to numbers).
A script should finish with the final merchandise on the highest of the stack being True, in any other case the script (and transaction executing it) fails and is taken into account consensus invalid.
This can be a primary instance of a pay-to-pubkey-hash (P2PKH) script, i.e. the legacy addresses that begin with a “1”:
First the signature and the general public key are added to the stack. Then DUP known as, which takes the highest stack merchandise and duplicates it, returning it to the highest of the stack. HASH160 takes the highest stack merchandise (the general public key duplicate), hashes it, then returns it to the highest of the stack. The general public key hash from the script is placed on high of the stack. EQUALVERIFY capabilities the identical as EQUAL, it grabs the 2 high stack objects and returns a 1 or 0 based mostly on the end result. The one distinction is EQUALVERIFY additionally runs VERIFY after EQUAL, which fails the transaction if the highest stack merchandise shouldn’t be 1, and in addition removes the highest stack merchandise. Lastly CHECKSIG is run, which grabs the highest two stack objects assuming them to be a signature and a pubkey, and verifies the signature implicitly in opposition to the hash of the transaction being verified. Whether it is legitimate it places a 1 on high of the stack.
How CSFS Works
CHECKSIG is likely one of the most used opcodes in Bitcoin. Each transaction, with virtually no exceptions, makes use of this opcode in some unspecified time in the future in one in every of its scripts. Signature verification is a foundational part of the Bitcoin protocol. The issue is, there may be virtually no flexibility by way of what message you might be checking the signature in opposition to. CHECKSIG will solely confirm a signature in opposition to the transaction being verified. There may be some flexibility, i.e. you’ll be able to determine with a point of freedom what elements of the transaction the signature applies to, however that’s it.
CSFS goals to alter this by permitting a signature to be verified in opposition to any arbitrary message that’s pushed instantly onto the stack, as an alternative of being restricted to the verification of signatures in opposition to the transaction itself. The opcode follows a really primary operational construction:
The signature and message are dropped on high of the stack, then the general public key on high of them, and at last CSFS grabs the highest three objects from the stack assuming them to be the general public key, message, and signature from high to backside, verifying the signature in opposition to the message. If the signature is legitimate, a 1 is positioned on the stack.
That’s it. A easy variant of CHECKSIG that lets customers specify arbitrary messages as an alternative of simply the spending transaction.
What Is CSFS Helpful For
So what precisely is that this good for? What’s using checking a signature in opposition to an arbitrary message on the stack as an alternative of in opposition to the spending transaction?
Firstly, together with CTV it may well present a performance equal to one thing that Lightning builders have wished because the very starting, floating signatures that may connect to completely different transactions. This was initially proposed as a brand new sighash flag for signatures (the sphere that dictates what elements of a transaction a signature applies to). This was wanted as a result of a transaction signature covers the transaction ID of the transaction that created the output being spent. This implies a signature is barely legitimate for a transaction spending that actual output.
This can be a desired conduct for Lightning as a result of it will enable us to eliminate channel penalties. Each previous Lightning state wants a penalty key and transaction with the intention to be certain that your channel counterparty by no means makes use of any of them to attempt to declare funds they don’t personal. If they struggle you’ll be able to declare all their cash. A superior performance can be one thing that permits you to merely “connect” the present state transaction to any earlier one to cease the theft try by distributing funds accurately versus confiscating them.
This may be completed with a primary script that takes a CTV hash and a signature over it that’s checked utilizing CSFS. This might enable any transaction hash signed by that CSFS key to spend any output that’s created with this script.
One other helpful function is delegation of management of a UTXO. The identical approach that any CTV hash signed by a CSFS key can validly spend a UTXO with a script designed for that, different variables might be handed into the script to be checked in opposition to, resembling a brand new public key. A script might be constructed that enables a CSFS key to log out on any public key, which then might be validated utilizing CSFS and used for a traditional CHECKSIG validation. This might assist you to delegate the flexibility to spend a UTXO to anybody else with out having to maneuver it on-chain.
Lastly, together with CAT, CSFS can be utilized to compose far more advanced introspection performance. As we’ll see later within the collection although, CSFS shouldn’t be really required to emulate any of this extra superior conduct, as CAT alone is ready to take action.
Closing Ideas
CSFS is a really primary opcode that along with providing easy helpful performance in its personal proper composes very properly with even the most straightforward covenant opcodes to create very helpful performance. Whereas the instance above relating to floating signatures particularly references the Lightning Community, floating signatures are a usually helpful primitive which are relevant to any protocol constructed on Bitcoin making use of pre-signed transactions.
Along with floating signatures, script delegation is a really helpful primitive that generalizes far past delegating management over a UTXO to a brand new public key. The identical primary capability to “sideload” variables after the actual fact right into a script validation move can apply to something, not simply public keys. Timelock values, hashlock preimages, and so on. Any script that hardcodes a variable to confirm in opposition to can now have these values dynamically added after the actual fact.
On high of that, CSFS is a really mature proposal. It has an implementation that has been stay on the Liquid Community and Components (the codebase Liquid makes use of) since 2016. As well as Bitcoin Money has had a model of it since 2018.
CSFS is a really mature proposal that goes again conceptually virtually so long as I’ve been on this area, with a number of mature implementations, and really clear use instances it may be utilized to.
