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[2003:dd:6712:6454:40cf:41c9:eae1:4e3e]) by smtp.gmail.com with ESMTPSA id x83sm4524369wmb.42.2019.06.28.22.53.59 for (version=TLS1_2 cipher=ECDHE-RSA-AES128-GCM-SHA256 bits=128/128); Fri, 28 Jun 2019 22:53:59 -0700 (PDT) From: Tamas Blummer Content-Type: multipart/signed; boundary="Apple-Mail=_05ED2CAE-02FA-42F2-82B0-04638939F790"; protocol="application/pgp-signature"; micalg=pgp-sha512 Mime-Version: 1.0 (Mac OS X Mail 10.3 \(3273\)) Message-Id: <7856AC5A-D2AD-4C94-99BC-AA0F948E2B40@gmail.com> Date: Sat, 29 Jun 2019 07:53:57 +0200 To: Bitcoin Protocol Discussion X-Mailer: Apple Mail (2.3273) X-Spam-Status: No, score=-2.0 required=5.0 tests=BAYES_00,DKIM_SIGNED, DKIM_VALID, DKIM_VALID_AU, FREEMAIL_FROM, HTML_MESSAGE, RCVD_IN_DNSWL_NONE autolearn=ham version=3.3.1 X-Spam-Checker-Version: SpamAssassin 3.3.1 (2010-03-16) on smtp1.linux-foundation.org X-Mailman-Approved-At: Sat, 29 Jun 2019 06:20:23 +0000 Subject: [bitcoin-dev] Generalized covenant to implement side chains embedded into the bitcoin block chain X-BeenThere: bitcoin-dev@lists.linuxfoundation.org X-Mailman-Version: 2.1.12 Precedence: list List-Id: Bitcoin Protocol Discussion List-Unsubscribe: , List-Archive: List-Post: List-Help: List-Subscribe: , X-List-Received-Date: Sat, 29 Jun 2019 05:54:03 -0000 --Apple-Mail=_05ED2CAE-02FA-42F2-82B0-04638939F790 Content-Type: multipart/alternative; boundary="Apple-Mail=_6966DAA7-0226-4B47-BBDE-E8014BD42EE9" --Apple-Mail=_6966DAA7-0226-4B47-BBDE-E8014BD42EE9 Content-Transfer-Encoding: quoted-printable Content-Type: text/plain; charset=us-ascii I introduced you to gerneralized covenants[1] earlier, but in a domain = specific context that de-routed us from technical discussion. Let me = demonstrate the concept in a more generic use: A covenant or(and(pk(Transfer), _) covenant transitive, and(pk(Exit),_) covenant = drop) would put a coin under the alternative control of a Transfer and Exit = keys together with the script in control of the current owner. Additional transaction level validations of transactions spending input = with covenants apply as in [1] Owner of such coins would be able to transfer them to others provided an = addtional Transfer signature, in which case the coin remains encumbered = with the same covenant. If Exit and owner signs the covenant is dropped on the output, it = becomes a plain Bitcoin again. The Thransfer and Exit signatures could be threshold signatures of a = federation, whereby member decide if the proposed transfer transaction = complies with whatever unique rules they impose. The result is a federated side chain embedded into the Bitcoin block = chain. Bob could purchase some asset guarded by the federation with a = transaction: Inputs 100.0001 pk(Bob) Outputs 0.1 or(and(pk(Transfer), pk(Bob)), and(pk(Exit), pk(Bob)) covenant = or(and(pk(Transfer), _) covenant transitive, and(pk(Exit),_) covenant = drop) 99.9 pk(Transfer) Transfer to Alice with consent of the transfer validators: Inputs 0.1 or(and(pk(Transfer), pk(Bob)), and(pk(Exit), pk(Bob)) covenant = or(and(pk(Transfer), _) covenant transitive, and(pk(Exit),_) covenant = drop) 100.001 pk(Alice) Outputs 0.1 or(and(pk(Transfer), pk(Alice)), and(pk(Exit), pk(Alice)) covenant = or(and(pk(Transfer), _) covenant transitive, and(pk(Exit),_) covenant = drop) 100 pk(Bob) Alice might be approved to exit with the exit signature of the = federation: Inputs 0.1 or(and(pk(Transfer), pk(Alice)), and(pk(Exit), pk(Alice)) covenant = or(and(pk(Transfer), _) covenant transitive, and(pk(Exit),_) covenant = drop) 99.9 pk(Transfer) Outputs 99.9999 pk(Alice) Tamas Blummer [1] = https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2019-June/017059.h= tml = --Apple-Mail=_6966DAA7-0226-4B47-BBDE-E8014BD42EE9 Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset=us-ascii I introduced you to gerneralized covenants[1] earlier, but in = a domain specific context that de-routed us from technical discussion. = Let me demonstrate the concept in a more generic use:

A covenant 
or(and(pk(Transfer), _) covenant = transitive, and(pk(Exit),_) covenant drop) 

would put a coin under the alternative = control of a Transfer and Exit keys together with the script in control = of the current owner. 
Additional transaction = level validations of transactions spending input with covenants apply as = in [1]

Owner = of such coins would be able to transfer them to others provided an = addtional Transfer signature, in which case the coin remains encumbered = with the same covenant.
If Exit and owner signs the = covenant is dropped on the output, it becomes a plain Bitcoin = again.

The = Thransfer and Exit signatures could be threshold signatures of a = federation, whereby member decide if the proposed transfer transaction = complies with whatever unique rules they impose. 

The result is a = federated side chain embedded into the Bitcoin block chain.

Bob could purchase some = asset guarded by the federation with a transaction:

Inputs =
100.0001 pk(Bob)

Outputs
0.1 = or(and(pk(Transfer), pk(Bob)), and(pk(Exit), pk(Bob)) covenant = or(and(pk(Transfer), _) covenant transitive, and(pk(Exit),_) covenant = drop) 
99.9 pk(Transfer)

Transfer = to Alice with consent of the transfer validators:
Inputs
0.1 = or(and(pk(Transfer), pk(Bob)), and(pk(Exit), pk(Bob)) covenant = or(and(pk(Transfer), _) covenant transitive, and(pk(Exit),_) covenant = drop) 
100.001 pk(Alice)

Outputs
0.1 or(and(pk(Transfer), pk(Alice)), and(pk(Exit), pk(Alice)) = covenant or(and(pk(Transfer), _) covenant transitive, and(pk(Exit),_) = covenant drop) 
100 pk(Bob)

Alice might be approved = to exit with the exit signature of the federation:

Inputs
0.1 or(and(pk(Transfer), pk(Alice)), and(pk(Exit), pk(Alice)) = covenant or(and(pk(Transfer), _) covenant transitive, and(pk(Exit),_) = covenant drop) 
99.9 pk(Transfer)

Outputs
99.9999 pk(Alice)

Tamas Blummer
[1] https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2019-Ju= ne/017059.html
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