Author: Greg Sanders 2021-07-05 13:51:25
Published on: 2021-07-05T13:51:25+00:00
The discussion on enabling covenants in Bitcoin has been ongoing, with some concerns being raised about the implications of unbounded covenants. However, as more research is conducted on what covenants can achieve, arguments against them naturally lose weight. Multisig alone enables recursive covenants, such as when a government requires funds to be deposited into a multisig that can only be spent if certain conditions are met. This approach is more efficient than using explicit covenants and is already being used in permissioned systems like Liquid. While there are ways to escape from such recursive covenants, they are not fundamentally different from consensus-enforced covenants. Therefore, multisig-based covenants should be considered in the ongoing discussions about enabling covenants in Bitcoin.
Updated on: 2023-06-15T00:01:25.672826+00:00