Author: Nadav Ivgi 2022-04-25 17:27:11
Published on: 2022-04-25T17:27:11+00:00
The discussion on the bitcoin-dev mailing list revolves around the security concerns of unvaulting an output to a hot wallet, which could result in theft by a waiting thief. Billy Tetrud suggests splitting up UTXOs to limit exposure, but also notes that theft of a single key could result in theft in a CTV vault compared to a multisig wallet. However, it is possible to have a CTV vault where the hot key signer is a multisig to get the advantages of both. Matt Corallo explains that rotating all CTV outputs and keeping them below the hot wallet risk tolerance amount are practical limitations rather than security ones. Russell O'Connor compares the advantages and drawbacks of CTV-based vaults versus MES-style vaults, where the latter offers more advantages for managing payments through a vault. The discussion also touches on fee management and the need for less constrained covenant designs.
Updated on: 2023-06-15T19:37:54.131417+00:00