Published on: 2022-04-28T23:51:31+00:00
The discussion on the bitcoin-dev mailing list revolves around the benefits and tradeoffs of using multisig versus a wallet vault. Nadav Ivgi highlights the primary benefit of a vault, which is the ability to keep primary wallet keys in deep cold storage for enhanced security. On the other hand, Billy Tetrud argues that the purpose of a wallet vault is to gain the security of a multisig wallet without having to sign using as many keys. The conversation also delves into the COV proposal in MES, which allows users to check if an output's scriptPubKey matches the corresponding script item from the stack, while accommodating wildcard values. Signing the transaction with the hot wallet key removes third-party malleability.The discussions explore different setups and approaches to securing Bitcoin transactions. The use of a warmer model for covenant-encumbered two-step spending with more frequently used keys is suggested, while keeping primary keys in deep cold storage for increased security. The viability of a CTV vault where the hot key signer is a multisig is discussed, with some arguing that it does not offer the advantages of either wallet type. The COV proposal in MES allows checking if the output's scriptPubKey matches the corresponding script item from the stack, with wildcard values available. However, the signing of the transaction with the hot wallet key eliminates malleability issues.The conversation also touches on the limitations and risks associated with different vault schemes. The theft of a hot wallet key is highlighted as a security concern in CTV-based vaults, as it may not be immediately apparent that the key has been stolen. The MES vault scheme is compared to the CTV vault, with the former offering more advantages for managing payments through a vault. Fee management and less constrained covenant designs are identified as areas that could benefit from further exploration.In addition, there are discussions about the limitations and potential solutions to security issues in vault proposals. The theft of a hot key and the possibility of waiting for the user to unvault their funds are identified as concerns. Alternative solutions such as the OP_BEFOREBLOCKVERIFY opcode and encoding transactions with OP_POS and OP_CD are proposed. The MES vault design is mentioned as one that commits to the destination address during unvaulting, but this requires a less constrained covenant design. The CTV vault is acknowledged as potentially containing the damage from a hot key theft more effectively, but fee management remains an issue.Overall, the discussions highlight the advantages and disadvantages of different wallet vault setups and COV proposals in MES. The focus is on security concerns, risk management, and exploring alternative approaches to address limitations.
Updated on: 2023-08-02T06:15:08.265648+00:00