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Bitcoin covenants

Malte Möser, Ittay Eyal, Emin Gün Sirer

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This paper presents an extension to Bitcoin’s script language enabling covenants, a primitive that allows transactions to restrict how the value they transfer is used in the future. Covenants expand the set of financial instruments expressible in Bitcoin, and enable new powerful and novel use cases. We illustrate two novel security constructs built using covenants. The first, vaults, focuses on improving the security of private cryptographic keys. Historically, maintaining these keys securely and reliably has been a critical vulnerability for Bitcoin users.We show how covenants enable vaults, which disincentivize key theft by preventing an attacker from gaining full access to stolen funds. The second construct, poison transactions, is a generally useful mechanism for penalizing double-spending attacks. Bitcoin-NG, a protocol that has been recently proposed to improve Bitcoin’s throughput, latency and overall scalability, requires this feature. We show how covenants enable poison transactions, and detail how Bitcoin-NG can be implemented progressively as an overlay on top of the Bitcoin blockchain.

Original languageEnglish
Title of host publicationFinancial Cryptography and Data Security - International Workshops, FC 2016, BITCOIN, VOTING, and WAHC, Revised Selected Papers
EditorsKurt Rohloff, Jeremy Clark, Sarah Meiklejohn, Dan Wallach, Michael Brenner, Peter Y.A. Ryan
Pages126-141
Number of pages16
DOIs
StatePublished - 2016
Externally publishedYes
EventInternational Workshops on Financial Cryptography and Data Security, FC 2016 and 3rd Workshop on Bitcoin and Blockchain Research, BITCOIN 2016, 1st Workshop on Advances in Secure Electronic Voting Schemes, VOTING 2016, and 4th Workshop on Encrypted Comp... - Christ Church, Barbados
Duration: 26 Feb 201626 Feb 2016

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume9604 LNCS

Conference

ConferenceInternational Workshops on Financial Cryptography and Data Security, FC 2016 and 3rd Workshop on Bitcoin and Blockchain Research, BITCOIN 2016, 1st Workshop on Advances in Secure Electronic Voting Schemes, VOTING 2016, and 4th Workshop on Encrypted Comp...
Country/TerritoryBarbados
CityChrist Church
Period26/02/1626/02/16

All Science Journal Classification (ASJC) codes

  • Theoretical Computer Science
  • General Computer Science

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