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Return-Path: <dev@jonasschnelli.ch>
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From: Jonas Schnelli <dev@jonasschnelli.ch>
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Subject: [bitcoin-dev] New serialization/encoding format for key material
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Hi

Extended public and private keys are defined in BIP32 [1].

Encoded extended private keys should not be confused with a wallet =
=E2=80=9Eseed=E2=80=9C
(proposals like BIP39) while they can also partially serve the purpose =
to
=E2=80=9Eseed=E2=80=9C a wallet (there may be an overlap in the =
use-case).

Recovering a wallet by its extended private master key (xpriv; may or =
may not
be at depth 0) is a complex task with risks of failing to recover all =
available
funds.

It may be reasonable to consider that recovering a wallet purely based =
on the
existence of an extended private master key is a forensic funds recovery
process and should probably be the last resort in case of a =
backup-recovery
situation. A simple example here is, that it was/is possible to have =
used an
xpriv (referring to extended private master key) in production that =
is/was used
to derive BIP45 based P2SH multisig addresses (1of1, used by Bitpays BWS =
for
while), later used for bare BIP45ish multisig 1of1 as well as for P2PKH =
after
BIP44 & vanilla BIP32 P2WPKH (m/0=E2=80=99/k=E2=80=99).
I=E2=80=99m not aware of any wallet that would recover 100% of those =
funds, leading to
the risk that forwarding the unspents and destroying the extended master =
key
may result in coins forever lost.

The case above may be an edge case, but I=E2=80=99m generally under the =
assumption that
recovering funds based on the sole existence of an xpriv (or seed) =
without further
metadata is a fragile concept.

Second, the missing birthday-metadata tend to lead to non-optimal =
blockchain
scans (eventually increased p2p traffic). Recovering funds can take =
hours.

Additionally, the BIP44 gap limit seems to be a weak construct. The =
current gap
limit in BIP44 is set to 20 [2] which basically means, handing out more =
then 20
incoming payment requests (addresses) results in taking the risks that =
funds
may be destroyed (or at least not detected) during a recovery.
The Gap limit value may also depend on the use case, but the current =
proposals
do not allow to set an arbitrary value. High load merchants very likely =
need a
different gap limit value then individuals create a transaction once a =
year.

During creation time of an xpriv/xpub, it is impossible to know if the =
created
xpriv will be used for an unforeseen derivation scheme. Future proposals =
may
want to limit an extended key to a single derivation scheme.


This is an early draft in order to allow discussion that may lead to a =
possible
proposal.
This proposals could also make BIP 178 obsolete since it can be replace =
the
WIF[3] standard.


Thanks for feedback
/jonas


------------------------------------


Titel
######
Bech32 encoded key material including metadata

Abstract
########
An error tolerant encoding format for key material up to 520bits with a =
minimal
amount of metadata.

Motivation
##########
(See above; intro text)


Specification
#############

## Serialization format

1 bit version bit
15 bits (bit 1 to 16) key-birthday (0-32767)
(12 bit gap limit)
3 or 5 bits script type
256 or 512 or 520 bits key material
=3D Total 275, 545, 553 bits

The initial version bit allows extending the serialization-format in =
future.
The encoding format must hint the total length and thus allow to =
calculate the
length of the key material.

The total length for 256 or 512 bit key material is optimised for Bech32 =
(power
of 5).

### Key material
If the key material length is 520 bits, it must contain an extended =
public key
If the key material length is 512 bits, it must contain an extended =
private key
Key material length other then 256, 512, 520 bits and invalid.

If 520 bits are present, first 256 bits are the BIP32 chain code, to =
second 264
bits (33 bytes) define the public key (according to BIP32)

If 512 bits are present, first 256 bits are the BIP32 chain code, to =
second 256
bits define the private key

If 256 bits are present, those bits represent a pure private key (or =
seed)

### Key birthday
A 15 bit timestamp expressed in days since genesis (valid up to ~2098). =
The
birthday must be set to the first possible derivation of the according =
extended
key, if unknown, the used seed birthday must be used. If both unknown, 0
(16x0bit) must be used.

### Gap limit delta
12 bits, results in a possible range from 0 to 4095.

If the total decoded serialization length is 275 bits (decode) or if the =
key
material is 256 bits (encode), the gap limit must not be present.

The base gap limit value is 20 (to disallow insane gap limits). The =
final gap
limit is the base value + the gap limit delta stored in those 12 bits.
Key derivation gap limit must not be exceeded when deriving child keys =
and must
be respected during transaction rescans.
Child key derivation must not be possible if gap limit is hit.

### Script type restriction
3 or 5 bits (range 0-7 / 0-31)
0 no restriction
1 P2PKH compressed
2 P2PKH | P2SH
3 P2WPKH P2WSH nested in P2SH
4 P2WPKH | P2WSH

If the total decoded serialization length is 275 bits (decode) or if the =
key
material is 256 bits (encode), 3 bits are used for the script type. 5 =
bits are
used for key material with the size of 512, 520 bits.

If the script type restriction is set, the according extended key must =
only be
used to derive addresses with the selected script type.
This does not stands in contradiction to derivation path proposals =
([4]). It
does allow to derive and encode an extended key at a keypath where users =
assume
restricted script types in derivation due to other supported proposals.


Encoding
########

Bech32 must be used as encoding format (see the Bech32 rational [5]). =
Encoding
545 or 553 bits (results in 109 resp. 111 x 5 bits) will exceed the =
Bech32 property of a
guaranteed detection of 4 errors (only 3 are).
It is possible that there are more efficient BCH codes, especially for =
encoding
extended private keys. Since a Bech32 implementation needs to be present =
in
modern Bitcoin software, re-using Bech32 will allow to migrate to this =
proposal
with a minimal implementation effort.
Forensic, cpu-intense key-recovery (including brute-force techniques) =
may allow
to recover keys beyond the guaranteed error detection limits.

Bech32 HRPs
Mainnet Private Extended: xp
Mainnet Public Extended: xpu
Testnet Private Extended: tp
Testnet Public Extended: tpu
Mainnet Key: pk-
Testnet Key: tk-

Compatibility
###########
Only new software will be able to use these serialization and encoding =
format.

References
##########


[1] https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki =
<https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki>
[2] https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki
[3] https://github.com/bitcoin/bips/blob/master/bip-0178.mediawiki
[4] https://github.com/bitcoin/bips/blob/master/bip-0049.mediawiki
[5] =
https://github.com/bitcoin/bips/blob/master/bip-0173.mediawiki#rationale


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	charset=utf-8

<html><body style=3D"word-wrap: break-word; -webkit-nbsp-mode: space; =
line-break: after-white-space;" class=3D""><div class=3D""><div =
class=3D"">Hi</div><div class=3D""><br class=3D""></div><div =
class=3D"">Extended public and private keys are defined in BIP32 =
[1].</div><div class=3D""><br class=3D""></div><div class=3D"">Encoded =
extended private keys should not be confused with a wallet =
=E2=80=9Eseed=E2=80=9C&nbsp;</div><div class=3D"">(proposals like BIP39) =
while they can also partially serve the purpose to&nbsp;</div><div =
class=3D"">=E2=80=9Eseed=E2=80=9C a wallet (there may be an overlap in =
the use-case).</div><div class=3D""><br class=3D""></div><div =
class=3D"">Recovering a wallet by its extended private master key =
(xpriv; may or may not&nbsp;</div><div class=3D"">be at depth 0) is a =
complex task with risks of failing to recover all =
available&nbsp;</div><div class=3D"">funds.</div><div class=3D""><br =
class=3D""></div><div class=3D"">It may be reasonable to consider that =
recovering a wallet purely based on the&nbsp;</div><div =
class=3D"">existence of an extended private master key is a forensic =
funds recovery&nbsp;</div><div class=3D"">process and should probably be =
the last resort in case of a backup-recovery&nbsp;</div><div =
class=3D"">situation. A simple example here is, that it was/is possible =
to have used an&nbsp;</div><div class=3D"">xpriv (referring to extended =
private master key) in production that is/was used&nbsp;</div><div =
class=3D"">to derive BIP45 based P2SH multisig addresses (1of1, used by =
Bitpays BWS for&nbsp;</div><div class=3D"">while), later used for bare =
BIP45ish multisig 1of1 as well as for P2PKH after&nbsp;</div><div =
class=3D"">BIP44 &amp; vanilla BIP32 P2WPKH (m/0=E2=80=99/k=E2=80=99).</di=
v><div class=3D"">I=E2=80=99m not aware of any wallet that would recover =
100% of those funds, leading to&nbsp;</div><div class=3D"">the risk that =
forwarding the unspents and destroying the extended master =
key&nbsp;</div><div class=3D"">may result in coins forever =
lost.</div><div class=3D""><br class=3D""></div><div class=3D"">The case =
above may be an edge case, but I=E2=80=99m generally under the =
assumption that&nbsp;</div><div class=3D"">recovering funds based on the =
sole existence of an xpriv (or seed) without further&nbsp;</div><div =
class=3D"">metadata is a fragile concept.</div><div class=3D""><br =
class=3D""></div><div class=3D"">Second, the missing birthday-metadata =
tend to lead to non-optimal blockchain&nbsp;</div><div class=3D"">scans =
(eventually increased p2p traffic). Recovering funds can take =
hours.</div><div class=3D""><br class=3D""></div><div =
class=3D"">Additionally, the BIP44 gap limit seems to be a weak =
construct. The current gap&nbsp;</div><div class=3D"">limit in BIP44 is =
set to 20 [2] which basically means, handing out more then =
20&nbsp;</div><div class=3D"">incoming payment requests (addresses) =
results in taking the risks that funds&nbsp;</div><div class=3D"">may be =
destroyed (or at least not detected) during a recovery.</div><div =
class=3D"">The Gap limit value may also depend on the use case, but the =
current proposals&nbsp;</div><div class=3D"">do not allow to set an =
arbitrary value. High load merchants very likely need a&nbsp;</div><div =
class=3D"">different gap limit value then individuals create a =
transaction once a year.</div><div class=3D""><br class=3D""></div><div =
class=3D"">During creation time of an xpriv/xpub, it is impossible to =
know if the created&nbsp;</div><div class=3D"">xpriv will be used for an =
unforeseen derivation scheme. Future proposals may&nbsp;</div><div =
class=3D"">want to limit an extended key to a single derivation =
scheme.</div><div class=3D""><br class=3D""></div><div class=3D""><br =
class=3D""></div><div class=3D"">This is an early draft in order to =
allow discussion that may lead to a possible</div><div =
class=3D"">proposal.</div><div class=3D"">This proposals could also make =
BIP 178 obsolete since it can be replace the&nbsp;</div><div =
class=3D"">WIF[3] standard.</div><div class=3D""><br class=3D""></div><div=
 class=3D""><br class=3D""></div><div class=3D"">Thanks for =
feedback</div><div class=3D"">/jonas</div><div class=3D""><br =
class=3D""></div><div class=3D""><br class=3D""></div><div =
class=3D"">------------------------------------</div><div class=3D""><br =
class=3D""></div><div class=3D""><br class=3D""></div><div =
class=3D"">Titel</div><div class=3D"">######</div><div class=3D"">Bech32 =
encoded key material including metadata</div><div class=3D""><br =
class=3D""></div><div class=3D"">Abstract</div><div =
class=3D"">########</div><div class=3D"">An error tolerant encoding =
format for key material up to 520bits with a minimal&nbsp;</div><div =
class=3D"">amount of metadata.</div><div class=3D""><br =
class=3D""></div><div class=3D"">Motivation</div><div =
class=3D"">##########</div><div class=3D"">(See above; intro =
text)</div><div class=3D""><br class=3D""></div><div class=3D""><br =
class=3D""></div><div class=3D"">Specification</div><div =
class=3D"">#############</div><div class=3D""><br class=3D""></div><div =
class=3D"">## Serialization format</div><div class=3D""><br =
class=3D""></div><div class=3D"">1 bit version bit</div><div class=3D"">15=
 bits (bit 1 to 16) key-birthday (0-32767)</div><div class=3D"">(12 bit =
gap limit)</div><div class=3D"">3 or 5 bits script type</div><div =
class=3D"">256 or 512 or 520 bits key material</div><div class=3D"">=3D =
Total 275, 545, 553 bits</div><div class=3D""><br class=3D""></div><div =
class=3D"">The initial version bit allows extending the =
serialization-format in future.</div><div class=3D"">The encoding format =
must hint the total length and thus allow to calculate =
the&nbsp;</div><div class=3D"">length of the key material.</div><div =
class=3D""><br class=3D""></div><div class=3D"">The total length for 256 =
or 512 bit key material is optimised for Bech32 (power&nbsp;</div><div =
class=3D"">of 5).</div><div class=3D""><br class=3D""></div><div =
class=3D"">### Key material</div><div class=3D"">If the key material =
length is 520 bits, it must contain an extended public key</div><div =
class=3D"">If the key material length is 512 bits, it must contain an =
extended private key</div><div class=3D"">Key material length other then =
256, 512, 520 bits and invalid.</div><div class=3D""><br =
class=3D""></div><div class=3D"">If 520 bits are present, first 256 bits =
are the BIP32 chain code, to second 264&nbsp;</div><div class=3D"">bits =
(33 bytes) define the public key (according to BIP32)</div><div =
class=3D""><br class=3D""></div><div class=3D"">If 512 bits are present, =
first 256 bits are the BIP32 chain code, to second 256&nbsp;</div><div =
class=3D"">bits define the private key</div><div class=3D""><br =
class=3D""></div><div class=3D"">If 256 bits are present, those bits =
represent a pure private key (or seed)</div><div class=3D""><br =
class=3D""></div><div class=3D"">### Key birthday&nbsp;</div><div =
class=3D"">A 15 bit timestamp expressed in days since genesis (valid up =
to ~2098). The&nbsp;</div><div class=3D"">birthday must be set to the =
first possible derivation of the according extended&nbsp;</div><div =
class=3D"">key, if unknown, the used seed birthday must be used. If both =
unknown, 0&nbsp;</div><div class=3D"">(16x0bit) must be used.</div><div =
class=3D""><br class=3D""></div><div class=3D"">### Gap limit =
delta</div><div class=3D"">12 bits, results in a possible range from 0 =
to 4095.</div><div class=3D""><br class=3D""></div><div class=3D"">If =
the total decoded serialization length is 275 bits (decode) or if the =
key&nbsp;</div><div class=3D"">material is 256 bits (encode), the gap =
limit must not be present.</div><div class=3D""><br class=3D""></div><div =
class=3D"">The base gap limit value is 20 (to disallow insane gap =
limits). The final gap&nbsp;</div><div class=3D"">limit is the base =
value + the gap limit delta stored in those 12 bits.</div><div =
class=3D"">Key derivation gap limit must not be exceeded when deriving =
child keys and must&nbsp;</div><div class=3D"">be respected during =
transaction rescans.</div><div class=3D"">Child key derivation must not =
be possible if gap limit is hit.</div><div class=3D""><br =
class=3D""></div><div class=3D"">### Script type restriction</div><div =
class=3D"">3 or 5 bits (range 0-7 / 0-31)</div><div class=3D"">0 no =
restriction</div><div class=3D"">1 P2PKH compressed</div><div class=3D"">2=
 P2PKH | P2SH</div><div class=3D"">3 P2WPKH P2WSH nested in =
P2SH</div><div class=3D"">4 P2WPKH | P2WSH</div><div class=3D""><br =
class=3D""></div><div class=3D"">If the total decoded serialization =
length is 275 bits (decode) or if the key&nbsp;</div><div =
class=3D"">material is 256 bits (encode), 3 bits are used for the script =
type. 5 bits are&nbsp;</div><div class=3D"">used for key material with =
the size of 512, 520 bits.</div><div class=3D""><br class=3D""></div><div =
class=3D"">If the script type restriction is set, the according extended =
key must only be&nbsp;</div><div class=3D"">used to derive addresses =
with the selected script type.</div><div class=3D"">This does not stands =
in contradiction to derivation path proposals ([4]). It&nbsp;</div><div =
class=3D"">does allow to derive and encode an extended key at a keypath =
where users assume&nbsp;</div><div class=3D"">restricted script types in =
derivation due to other supported proposals.</div><div class=3D""><br =
class=3D""></div><div class=3D""><br class=3D""></div><div =
class=3D"">Encoding</div><div class=3D"">########</div><div class=3D""><br=
 class=3D""></div><div class=3D"">Bech32 must be used as encoding format =
(see the Bech32 rational [5]). Encoding&nbsp;</div><div class=3D"">545 =
or 553 bits (results in 109 resp. 111 x 5 bits) will exceed the Bech32 =
property of a&nbsp;</div><div class=3D"">guaranteed detection of 4 =
errors (only 3 are).</div><div class=3D"">It is possible that there are =
more efficient BCH codes, especially for encoding&nbsp;</div><div =
class=3D"">extended private keys. Since a Bech32 implementation needs to =
be present in&nbsp;</div><div class=3D"">modern Bitcoin software, =
re-using Bech32 will allow to migrate to this proposal&nbsp;</div><div =
class=3D"">with a minimal implementation effort.</div><div =
class=3D"">Forensic, cpu-intense key-recovery (including brute-force =
techniques) may allow&nbsp;</div><div class=3D"">to recover keys beyond =
the guaranteed error detection limits.</div><div class=3D""><br =
class=3D""></div><div class=3D"">Bech32 HRPs</div><div class=3D"">Mainnet =
Private Extended: xp</div><div class=3D"">Mainnet Public Extended: =
xpu</div><div class=3D"">Testnet Private Extended: tp</div><div =
class=3D"">Testnet Public Extended: tpu</div><div class=3D"">Mainnet =
Key: pk-</div><div class=3D"">Testnet Key: tk-</div><div class=3D""><br =
class=3D""></div><div class=3D"">Compatibility</div><div =
class=3D"">###########</div><div class=3D"">Only new software will be =
able to use these serialization and encoding format.</div><div =
class=3D""><br class=3D""></div><div class=3D"">References</div><div =
class=3D"">##########</div><div class=3D""><br class=3D""></div><div =
class=3D""><br class=3D""></div><div class=3D"">[1] <a =
href=3D"https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki" =
class=3D"">https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki<=
/a></div><div class=3D"">[2] <a =
href=3D"https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki" =
class=3D"">https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki<=
/a></div><div class=3D"">[3] <a =
href=3D"https://github.com/bitcoin/bips/blob/master/bip-0178.mediawiki" =
class=3D"">https://github.com/bitcoin/bips/blob/master/bip-0178.mediawiki<=
/a></div><div class=3D"">[4] <a =
href=3D"https://github.com/bitcoin/bips/blob/master/bip-0049.mediawiki" =
class=3D"">https://github.com/bitcoin/bips/blob/master/bip-0049.mediawiki<=
/a></div><div class=3D"">[5] <a =
href=3D"https://github.com/bitcoin/bips/blob/master/bip-0173.mediawiki#rat=
ionale" =
class=3D"">https://github.com/bitcoin/bips/blob/master/bip-0173.mediawiki#=
rationale</a></div></div><div class=3D""><br =
class=3D""></div></body></html>=

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