Jeremy Rubin released a proposal two weeks ago titled Un’FE’d Covenants (FE = Functional Encryption). Given the ongoing debate over covenant proposals for Bitcoin the last year or two, his proposal marks a new practical option. All covenant proposals so far require a soft fork (actual opcodes), the development and implementation of unproven cryptography (Functional Encryption), or an absurdly high monetary cost to use (ColliderScript).
Jeremy’s proposal requires no softforks, and does not impose a burdensome and impractical cost on users to utilize. The trade off for that capability is a radically different security model. By using a system of oracles, and BitVM based bonds capable of slashing, covenants can be emulated on Bitcoin right now.
The Oracles
The first part of the scheme is obviously the oracles that enforce different covenant conditions. This is a relatively straightforward set up, and the first building block necessary for Jeremy’s proposal. The oracle has custody
We współpracy z: https://bitcoinmagazine.com/technical/a-last-resort-unfed-covenants-for-bitcoin
