Lock them up!

The importance of multi-signature, time-locked Bitcoin transactions in custody solutions

Good news everyone!
Institutional money is coming!

But the big question is: can custodians guarantee the security of the very-valuable Bitcoin that institutions are (will be) buying?


good news

P2PKH Bitcoin single signature transaction, compares to a private road.

Single Signature

Bitcoin assembly code

What does a P2PKH transaction loook like?

PubKeyScript - you can move my UTXOs if you can do one simple thing!


ScriptSig - I can do that one simple thing, here's my proof!

<sig> <pubKey> OP_DUP OP_HASH160 <hash160(pubKey)> OP_EQUAL OP_CHECKSIG

P2SKH Bitcoin multisig transaction requires two signatures, compares to a missle launch control center.

Two man rule

What if the locks could not (mechanically) be opened until the clock reaches 19:00:00?

Two man rule

Bitcoin assembly code

What does our P2SKH transaction loook like?

PubKeyScript - you can move my UTXOs if you can do two simple things and only after some point in time!

OP_HASH160 <redeemScript> OP_EQUAL

ScriptSig - I've waited for that block to be mined, and I can do those two things, here's my proof!

  OP_0 <sigA> <sigB> <redeemScript> OP_HASH160 <hash160(redeemScript)> OP_EQUAL

Consider all of the weaknesses of your system! Because...

existing concept
Two man rule

There is no margin for error.

existing concept

The reference client should be the weakest link in your system.

A theoretically perfect interface passes the security properties of the reference client to the end user(s) without increasing the attack/loss surface. This is probably not possible to achieve in the real world!