covenants

📰 The main point of this article isn’t how to hide assets, but that trading plans—what to do and when to do it—need to be kept private too. Public on-chain ledgers reveal holdings, trading habits, and strategies; when traders’ intentions and parameters are exposed, others may get the chance to front-run them.

🔥 XMR and ZEC prove that the market needs private money, but they mainly address privacy in value transfers. That doesn’t mean they can protect trading intentions in smart contracts. Existing tools each cover only part of the problem: Renegade enables confidential matching, Aster isolates and hides orders and positions, while Flashbots Protect, MEV Blocker, and Shutter try to keep transactions from being exposed before confirmation.

💡 The article describes Nillion’s Covenants, which take a somewhat different approach: seal instructions that say “execute once certain conditions are met,” then unseal them only when those conditions are satisfied. Examples include hidden bids, private conditional orders, or automatically executing actions when risk controls are triggered. Developers can experiment with building these kinds of applications without having to handle complex cryptography from scratch.

👀 Of course, this isn’t a finished product that’s already deployed across all chains. The article says the first implementation will launch during the Dusk phase on Ethereum mainnet, with plans to expand to multiple chains, external data sources, and more complex private logic later. The extent of the protection it can provide in practice remains to be seen.

🤔 If you could hide both a transaction’s trigger conditions and execution parameters, which strategy would you most want to protect?

#链上隐私 #Nillion #Covenants #DeFi

The Bitcoin community is buzzing with a technical debate that could be a game changer: Covenants. Putting aside short-term price volatility, what's being discussed is the future of programmability on the number one blockchain.

In simple terms, this mechanism allows for conditions to be placed on how UTXO will be spent in the future. It's not just about sending to address A or B anymore; it could be bound to go into a vault, go through multi-sig, or comply with a certain structure.

Currently, there are at least 12 competing proposals, from OP_CTV, OP_TXHASH to a revival of OP_CAT. Each has its own approach. For traders, this opens up a long-term narrative: Bitcoin could have DEX, more sophisticated hack-proof vaults, and a more flexible Lightning Network.

However, the road to consensus is still long. The Bitcoin community is notoriously conservative. They weigh carefully between innovation and security risks.

What to watch: Which proposal will rise to lead? Part 2 of the report will dive deep into each proposal. Keep an open mind, but don’t rush to dream about an "Ethereum on Bitcoin" just yet. This is a long game.

#BTC #Côngnghệ #Bitcoin #Covenants

Bitcoin Covenants Part 4: OP_CHECKSIGFROMSTACK and OP_CAT

- OP_CSFS verifies a signature over arbitrary data.
- OP_CAT concatenates values on the stack into a single message.
- Together, they allow a Bitcoin script to verify the transaction structure at the time of spending, without needing to manage pre-signed keys or introduce any new consensus rules beyond these two opcodes.

#Bitcoin #CryptoNews #Blockchain #BTC #Covenants

$btc

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Source: CoinTelegraph