Bitcoin PIPEs v2

The discussion revolves around the technical intricacies of implementing covenants in cryptocurrency transactions without relying on traditional methods such as 3-of-3 multisig. It is highlighted that Function Encryption (FE)-based PIPEs (Private Information into Public Enclave) offer a viable solution for emulating post-covenant structures cryptographically. However, there's an acknowledgment of the practical limitations currently faced with deploying PIPEs v1, which necessitates the use of PIPEs v2-based pre-covenants or binary-predicate covenants in the interim.

Further examination reveals that PIPEs v2 possesses the capability to accommodate covenants of varying complexities through the utilization of zero-knowledge virtual machines (zkVM) or zero-knowledge LLVM (zkLLVM), suggesting that transaction pre-conditions can be defined with significant flexibility. This opens up possibilities for integrating additional restrictions directly within the covenant's circuit design.

The conversation also touches upon an interest in identifying which Bitcoin Improvement Proposals (BIPs) could potentially become obsolete through the application of PIPEs technology, either version 1 or 2. The goal here is to streamline the existing wishlist by eliminating the need for extra opcodes, thereby simplifying the current landscape. There’s an open invitation for collaboration, indicating a community-driven approach towards exploring and enhancing the effectiveness of PIPEs in this context.