Published on: 2017-07-27T16:52:52+00:00
Bitcoin developers have proposed a standard for timelocked funds that can be used across multiple Bitcoin wallet implementations. This proposal allows users to voluntarily lock their funds for a specified period of time and creates timelocked addresses redeemable at set dates each month. The proposal ensures that the redemption codes for these funds will still be usable even if the software or service is no longer available in the future.The proposed standard outlines formats for specifying an address that locks funds until a specified date and a redemption code that allows the funds to be swept on or after the specified date. Both addresses use the characters 'hodl' followed by a date in YYYYMMDD form, and a network code of either tb for testnet or bc for Bitcoin mainnet. The lock time is calculated based on the day before the lock date and the time 1000h of that date.To ensure backwards compatibility with wallets that do not support this proposal, a simple service can translate from a public timelocked address to a P2SH address. The proposal also recommends that wallets supporting payment to various Bitcoin address types should reuse the same interface for paying into timelocked addresses.The public address format starts with "hodl" while the private key (redemption code) uses "hedl". This provides a mnemonic for users: "Pay into the hodl code to hold your coins until the given date. After you've held the coins (on or after the given date) use the hedl code to redeem the coins." The misspelling of "hodl" is a homage to a common meme within the Bitcoin community.The proposal includes a version quintet in case of future changes that affect the interpretation of dates or scripting. It also offers three options for indicating the timezone: using the earliest timezone (UTC+14 0000h), using the standard timezone (UTC+0 0000h), or allowing users to indicate their local timezone. The bech32 separator digit of 1 can be used to compare different versions of a Bitcoin address.The BIP proposal aims to provide a standard address format for timelocked funds using the OP_CHECKLOCKTIMEVERIFY opcode. This will benefit long-term investors who want to lock their funds until a specific date. The proposal specifies formats for timelocked addresses and redemption codes, and provides instructions for providing funds to a timelocked address and sweeping a timelocked redemption code.The proposal outlines several expected use cases for timelocked funds, including waiting before cashing out, gifting Bitcoin to minors, providing monthly subsidies or allowances, and protecting against future duress or ransom. It also emphasizes the importance of having a shared standard for timelocked funds among multiple wallet implementations to ensure usability over time.Overall, this proposal offers a comprehensive approach to timelocked funds in Bitcoin, with detailed specifications for address formats, redemption codes, lock time computation, and backward compatibility. If implemented, this standard could provide valuable options for users looking to secure and manage their funds for specific periods of time.
Updated on: 2023-08-01T21:18:30.867973+00:00