Perpetually KYC'd Coins Using Evil Covenants

Perpetually KYC'd Coins Using Evil Covenants

Original Postby QcMrHyde

Posted on: February 13, 2024 22:17 UTC

Creating recursive covenants without the OP_CAT operation involves leveraging alternative mechanisms to achieve similar outcomes.

This approach necessitates a deeper understanding of how Bitcoin's script works and the exploration of inventive methodologies for implementing such covenants within the current limitations of the Bitcoin scripting language. The primary challenge lies in structuring transactions in a way that allows for the enforcement of specific conditions or rules without directly using OP_CAT, which concatenates two strings.

To address this challenge, developers can explore using existing script capabilities in novel combinations or seeking out less obvious functionalities within the script that can approximate the behavior of concatenating data. This might include using hashes in creative ways to ensure certain conditions are met or employing multi-signature setups that indirectly enforce the intended restrictions of a covenant.

Moreover, investigating past proposals and theoretical frameworks for expanding Bitcoin's scripting capabilities could provide valuable insights. There have been numerous discussions and BIPs (Bitcoin Improvement Proposals) suggesting enhancements and new operations that could facilitate more complex scripts. While these proposals may not be directly applicable in their current form, they could inspire innovative solutions that work within the existing script limitations.

In summary, while the absence of OP_CAT presents a significant obstacle to creating recursive covenants in Bitcoin, it also encourages a deeper dive into the scripting language's potential. By thoroughly understanding the available tools and creatively combining them, it is possible to approximate the desired functionality. Furthermore, ongoing developments and discussions within the Bitcoin community may eventually pave the way for more direct and efficient implementations of such features.