Concept Review: B-SSL (Bitcoin Secure Signing Layer) — Covenant-Free Vault Model Using Taproot, CSV, and CLTV

The discussion revolves around the intricacies of a CSV (CheckSequenceVerify) timelock mechanism and its practical application in cryptocurrency transactions, specifically within the context of a vault-like wallet setup. The CSV timelock is set to initiate a countdown of 15 days once coins are deposited into the wallet. During this period, key C is rendered inactive for signing any transactions due to the constraints imposed by the CSV timelock. The focal point of confusion arises after the expiration of the CSV timelock period; theoretically, key C should become active and capable of authorizing transactions. However, it remains inactive because its operational readiness is contingent upon the coordination with a Custodial Service (CS), which only starts its own countdown following a transaction that moves funds out of the vault.

This raises questions about the utility and rationale behind implementing a CSV timelock when, in practice, the security mechanism seems to be bypassed or rendered moot by the operational parameters of key C and the Custodial Service's procedures. The underlying assumption might be that users prefer to store their coins in the vault for periods extending beyond 15 days, thereby making the CSV timelock appear redundant under normal circumstances where no immediate transactions are intended post the deposit phase. This scenario highlights a potential disconnect between the envisioned security features of the CSV timelock and the practical realities of user behavior and system design, suggesting a need for reevaluation of the mechanism’s application or a clearer explanation of its intended benefits and operational logic.