That is the second article in a sequence deep diving into particular person covenant proposals which have reached a degree of maturity meriting an in-depth breakdown.
CHECKSIGFROMSTACK (CSFS), put ahead by Brandon Black and Jeremy Rubin with BIP 348, just isn’t a covenant. As I mentioned within the introductory article to this sequence, a number of the proposals I’d be masking will not be covenants, however synergize or interrelate with them not directly. CSFS is the primary instance of that.
CSFS is a quite simple opcode, however earlier than we undergo the way it works let’s have a look at the fundamentals of how a Bitcoin script really works.
Script is a stack based mostly language. That implies that knowledge is “stacked” collectively on high of one another on the stack, and operated on by eradicating an merchandise from the highest of the stack to function on based mostly on what an opcode does, both returning the information or a consequence from it to the highest of the stack.
There are two components of a script when it’s in the end executed and verified, the “witness” supplied to unlock the script, and the script included within the output being spent. The witness/unlocking script is “added” to the left facet of the locking script, after which every ingredient is added to (or operates on) the stack one after the other left to proper. Have a look at this instance (the “|” marks the boundary between the witness and script):
1 2 | OP_ADD 3 OP_EQUAL
This instance script provides the worth “1” to the stack, then the worth “2” on high of that. OP_ADD takes the highest two parts of the stack and provides them collectively, placing the consequence again on to the stack (so now all that’s on the stack is “3”). One other “3” is then added to the stack. The final merchandise, OP_EQUAL, takes the highest two gadgets of the stack and returns a “1” to the stack (1 and 0 can characterize True or False in addition to numbers).
A script should finish with the final merchandise on the highest of the stack being True, in any other case the script (and transaction executing it) fails and is taken into account consensus invalid.
It is a primary instance of a pay-to-pubkey-hash (P2PKH) script, i.e. the legacy addresses that begin with a “1”:
<signature> <pubkey> | DUP HASH160 <pubkey-hash> EQUALVERIFY CHECKSIG
First the signature and the general public key are added to the stack. Then DUP is named, which takes the highest stack merchandise and duplicates it, returning it to the highest of the stack. HASH160 takes the highest stack merchandise (the general public key duplicate), hashes it, then returns it to the highest of the stack. The general public key hash from the script is placed on high of the stack. EQUALVERIFY features the identical as EQUAL, it grabs the 2 high stack gadgets and returns a 1 or 0 based mostly on the result. The one distinction is EQUALVERIFY additionally runs VERIFY after EQUAL, which fails the transaction if the highest stack merchandise just isn’t 1, and likewise removes the highest stack merchandise. Lastly CHECKSIG is run, which grabs the highest two stack gadgets assuming them to be a signature and a pubkey, and verifies the signature implicitly towards the hash of the transaction being verified. Whether it is legitimate it places a 1 on high of the stack.
How CSFS Works
CHECKSIG is among the most used opcodes in Bitcoin. Each transaction, with virtually no exceptions, makes use of this opcode in some unspecified time in the future in one among its scripts. Signature verification is a foundational part of the Bitcoin protocol. The issue is, there’s virtually no flexibility when it comes to what message you might be checking the signature towards. CHECKSIG will solely confirm a signature towards the transaction being verified. There’s some flexibility, i.e. you may resolve with a point of freedom what components of the transaction the signature applies to, however that’s it.
CSFS goals to vary this by permitting a signature to be verified towards any arbitrary message that’s pushed instantly onto the stack, as a substitute of being restricted to the verification of signatures towards the transaction itself. The opcode follows a really primary operational construction:
<signature> <message> | <pubkey> CSFS
The signature and message are dropped on high of the stack, then the general public key on high of them, and eventually CSFS grabs the highest three gadgets from the stack assuming them to be the general public key, message, and signature from high to backside, verifying the signature towards the message. If the signature is legitimate, a 1 is positioned on the stack.
That’s it. A easy variant of CHECKSIG that lets customers specify arbitrary messages as a substitute of simply the spending transaction.
What Is CSFS Helpful For
So what precisely is that this good for? What’s using checking a signature towards an arbitrary message on the stack as a substitute of towards the spending transaction?
Firstly, together with CTV it will probably present a performance equal to one thing that Lightning builders have wished for the reason that very starting, floating signatures that may connect to totally different transactions. This was initially proposed as a brand new sighash flag for signatures (the sector that dictates what components of a transaction a signature applies to). This was wanted as a result of a transaction signature covers the transaction ID of the transaction that created the output being spent. This implies a signature is simply legitimate for a transaction spending that precise output.
It is a desired conduct for Lightning as a result of it could permit us to eliminate channel penalties. Each previous Lightning state wants a penalty key and transaction with a view to be certain that your channel counterparty by no means makes use of any of them to attempt to declare funds they don’t personal. If they struggle you may declare all their cash. A superior performance could be one thing that means that you can merely “connect” the present state transaction to any earlier one to cease the theft try by distributing funds appropriately versus confiscating them.
This may be completed with a primary script that takes a CTV hash and a signature over it that’s checked utilizing CSFS. This is able to permit any transaction hash signed by that CSFS key to spend any output that’s created with this script.
One other helpful characteristic is delegation of management of a UTXO. The identical approach that any CTV hash signed by a CSFS key can validly spend a UTXO with a script designed for that, different variables may be handed into the script to be checked towards, akin to a brand new public key. A script may very well be constructed that permits a CSFS key to log off on any public key, which then may very well be validated utilizing CSFS and used for a standard CHECKSIG validation. This is able to help you delegate the power to spend a UTXO to anybody else with out having to maneuver it on-chain.
Lastly, together with CAT, CSFS can be utilized to compose far more complicated introspection performance. As we’ll see later within the sequence although, CSFS just isn’t really required to emulate any of this extra superior conduct, as CAT alone is in a position to take action.
Closing Ideas
CSFS is a really primary opcode that along with providing easy helpful performance in its personal proper composes very properly with even the most straightforward covenant opcodes to create very helpful performance. Whereas the instance above relating to floating signatures particularly references the Lightning Community, floating signatures are a usually helpful primitive which can be relevant to any protocol constructed on Bitcoin making use of pre-signed transactions.
Along with floating signatures, script delegation is a really helpful primitive that generalizes far past delegating management over a UTXO to a brand new public key. The identical primary skill to “sideload” variables after the very fact right into a script validation stream can apply to something, not simply public keys. Timelock values, hashlock preimages, and many others. Any script that hardcodes a variable to confirm towards can now have these values dynamically added after the very fact.
On high of that, CSFS is a really mature proposal. It has an implementation that has been reside on the Liquid Community and Components (the codebase Liquid makes use of) since 2016. As well as Bitcoin Money has had a model of it since 2018.
CSFS is a really mature proposal that goes again conceptually virtually so long as I’ve been on this house, with a number of mature implementations, and really clear use instances it may be utilized to.