Author: Tamas Blummer 2019-06-29 05:53:57
Published on: 2019-06-29T05:53:57+00:00
The concept of generalized covenants is demonstrated in a more generic use, which allows for the creation of a federated side chain embedded into the Bitcoin block chain. A covenant can be created that puts a coin under the alternative control of Transfer and Exit keys together with the script in control of the current owner. The owner of such coins can transfer them to others provided an additional Transfer signature, in which case the coin remains encumbered with the same covenant. If both the Exit and owner sign, the covenant is dropped on the output and it becomes a plain Bitcoin again. The Transfer and Exit signatures could be threshold signatures of a federation, whereby members decide if the proposed transfer transaction complies with whatever unique rules they impose. Bob could purchase an asset guarded by the federation with a transaction. Alice might be approved to exit with the exit signature of the federation.
Updated on: 2023-06-13T19:59:35.706874+00:00