Bitcoin PIPEs v2 | Misha Komarov SLP776

<p></p><p>Bitcoin soft-fork debates around CTV, CSFS, OP_CAT, and OP_VAULT keep stalling — and Misha Komarov of Allocinit argues you can emulate much of that covenant behavior with cryptography instead of changing consensus.</p><p>Misha joins Stephan to unpack Bitcoin PIPEs v2: a Witness Encryption design that locks a signing key under an NP statement so a valid zero-knowledge proof decrypts the key and produces an ordinary Schnorr spend. Bitcoin L1 only checks a normal signature.</p><p>They compare PIPEs v1 (Functional Encryption / richer post-covenants) with v2 (Witness Encryption / binary pre-covenants), ciphertext sizes from ~300 TB toward single-digit terabytes, DKG and 1-of-n setup assumptions, non-custodial vault and shared-pool use cases, contrasts with cosigner models like Sigbash, and how Allocinit’s Shielded Bitcoin design differs from Shielded CSV’s client-side validation approach — plus open cryptanalysis challenges and a path toward implementable code.</p><p>Timestamps:</p><p>00:00 — Intro: Misha &amp; Bitcoin PIPEs v2</p><p>00:27 — Background: BitMessage to =nil;</p><p>01:31 — Soft-Fork Fatigue &amp; Nice-to-Haves</p><p>03:24 — Emulate Opcodes Without Soft Forks</p><p>04:54 — Witness Encryption Unlocks Keys</p><p>06:01 — Witness Encryption vs Bitcoin Witness</p><p>09:00 — PIPEs v1 vs v2: FE to WE</p><p>11:39 — Ciphertext Size &amp; Cost Trade-offs</p><p>15:28 — Vaults as the Unhappy Path</p><p>16:23 — PIPEs vs Sigbash Cosigner</p><p>18:05 — DKG Setup &amp; 1-of-n Trust</p><p>21:11 — Shared Vaults &amp; Lending Use Cases</p><p>23:24 — Beyond Canonical OP_VAULT</p><p>26:35 — Shielded Bitcoin vs Shielded CSV</p><p>32:17 — Self-Custody Peg-In and Peg-Out</p><p>37:14 — On-Chain Footprint Walkthrough</p><p>39:42 — Security Challenges &amp; Code Roadmap</p><p>Links: </p><ul><li><p><a href="https://x.com/nemothenoone"><u>https://x.com/nemothenoone</u></a></p></li><li><p>https://x.com/allocinitxyz</p></li></ul><p>Stephan Livera links:</p><ul><li><p>Follow me on X:<a href="https://twitter.com/stephanlivera"> @stephanlivera</a></p></li><li><p><a href="https://plinkhq.com/i/1415720320">Subscribe to the podcast</a></p></li><li><p><a href="https://stephanlivera.substack.com/">Subscribe to Substack</a></p></li></ul><p><br></p>