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Date: Thu, 3 Feb 2022 16:17:14 +1000
From: Anthony Towns <aj@erisian.com.au>
To: Matt Corallo <lf-lists@mattcorallo.com>,
 Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
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Subject: Re: [bitcoin-dev] Unlimited covenants,
 was Re: CHECKSIGFROMSTACK/{Verify} BIP for Bitcoin
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On Mon, Jul 05, 2021 at 09:46:21AM -0400, Matt Corallo via bitcoin-dev wrote:
> More importantly, AJ's point here neuters anti-covanent arguments rather
> strongly.
>
> On 7/5/21 01:04, Anthony Towns via bitcoin-dev wrote:
> > 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.

I couldn't remember where I'd heard this, but it looks like I came
across it via Andrew Poelstra's "CAT and Schnorr Tricks II" post [0]
(Feb 2021), in which he credits Ethan Heilman for originally coming up
with the analogy (in 2019, cf [1]).

[0] https://medium.com/blockstream/cat-and-schnorr-tricks-ii-2f6ede3d7bb5
[1] https://twitter.com/Ethan_Heilman/status/1194624166093369345

Cheers,
aj