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From: "'Misha Komarov' via Bitcoin Development Mailing List" <bitcoindev@googlegroups.com>
To: Bitcoin Development Mailing List <bitcoindev@googlegroups.com>
Subject: [bitcoindev] Bitcoin PIPEs v2. Overview and feedback request.
Date: Mon, 23 Feb 2026 11:25:41 -0800 (PST)	[thread overview]
Message-ID: <fcf7d14c-6860-4493-80d5-9959d3760cd1n@googlegroups.com> (raw)


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Heya list,

We recently published Bitcoin PIPEs v2 (
https://x.com/alloc_init_/status/2019411470232989918?s=20)(or an IACR link 
if anybody is interested: https://eprint.iacr.org/2026/186).

TL;DR: Bitcoin PIPEs v2 is an approach to induce covenants (by emulating 
missing opcodes) and pessimistic, single-transaction ZKPs verification on 
Bitcoin L1 without a softfork. The way it works is a DKG committee 
generates a key nobody knows (under 1-of-n assumption), issues a ciphertext 
which unlocks the private key only upon the successful verification of a 
ZKP. The existence of a transaction signed with a released private key is 
effectively attesting the successful verification of a ZKP to the Bitcoin 
L1. We’ve shifted from the Functional Encryption-based PIPEs v1 design (
https://x.com/nemothenoone/status/1843382870901235907?s=20) to an AADP 
Witness Encryption-based v2 design (
https://x.com/nemothenoone/status/2019431538207948812?s=20). This allowed 
us to move from “We can potentially run this in the future” to “We can run 
this for every block (~10 minutes), provided enough storage.” The cost is 
that each ciphertext currently requires approximately 330 TB of storage, 
though it is known how to decrease this number to around 100 GB in the near 
future. This approach still supports so-called “pre-covenants”.

There is also some discussion on Delving Bitcoin: 
https://delvingbitcoin.org/t/bitcoin-pipes-v2/2249.

The point of this email is to:

   1. *Revisit and potentially consolidate certain BIP proposals.* Several 
   BIPs propose new opcodes that many would like to see in Bitcoin Script 
   (e.g., OP_CTV, OP_VAULT, OP_CAT). However, given the lack of broad 
   consensus around these changes, PIPEs v2 may offer a way to deprecate or 
   supersede proposals such as the OP_CSFS BIP and vault-related BIPs 
   (including alternatives that aim to replicate vault functionality). We 
   would also like to explore which other proposals could reasonably be 
   deprecated or streamlined through this approach.
   2. *Clarify what improvements this enables — and how.* We would like to 
   better understand which systems could benefit from this design (e.g., 
   BitVM, Lightning liquidity efficiency, private transaction constructions 
   such as shielded CSV-style designs), and in what ways. For example, it 
   appears that BitVM can be improved via OP_VAULT-style emulation under this 
   framework.
   3. Gather feedback in general.

So, which covenants can PIPEs emulate?

PIPEs v2 enforces binary covenants — i.e., whether funds are authorized to 
be spent or not — by gating key recovery on an NP condition. It does not 
constrain transaction format or outputs once the private key is released.

Use cases aligning with binary authorization include:

   - *Vaults:* Funds unlock only when a beneficiary, recovery, or 
   eligibility condition is proven (thus BitVM get stripped from its 
   interactivity properties and operators liquidity requirements, Lightning 
   channel liquidity fragmentation can be reduced).
   - *Exit and Escape Conditions:* Off-chain protocol exits or rescue paths 
   unlocked upon proof.
   - *ZKPs:* Zero-knowledge proofs attesting to the correctness of 
   statements can gate spendability.
   - *Optimistic Protocol Finalization*: PIPEs allow such finalization 
   conditions to be enforced non-interactively; the existence of a valid proof 
   directly unlocks funds, without on-chain disputes or timing assumptions.
   - What else?

*Practicality & Performance*

Witness Encryption is often characterized as impractical. However, recent 
advances suggest that PIPEs v2 based on AADP WE (
https://eprint.iacr.org/2026/175) may be both practical and economically 
feasible. In our estimates, the scheme can be computed within Bitcoin’s 10 
minute block interval given parallelization and ongoing efficiency 
improvements.

Computationally, the dominant cost arises from determinant computation. If 
properly parallelized (e.g., following the approach in [1308.1536] A 
Parallel Algorithm for Calculation of Large Determinants with High Accuracy 
for GPUs and MPI clusters <https://arxiv.org/abs/1308.1536> ), the 
determinant can be computed within approximately one Bitcoin L1 block 
interval (~10 minutes) using 48 CPU machines, each equipped with 256 CPU 
cores and approximately 7 TB of storage. Memory requirements are 
comparatively modest and do not constitute a primary bottleneck.

At current cloud services pricing, renting such infrastructure amounts to 
approximately $100-200 per covenant execution, plus a negligible on-chain 
cost for signature verification. This makes the approach economically 
viable for near–real-time covenant emulation. Moreover, these execution 
costs can likely be further reduced (e.g. the ciphertext can theoretically 
be shrank to ~100 GB) through batching and more circuit reduction.

We invite BIP authors and Bitcoin contributors to help us evaluate where 
PIPEs v2 may reduce complexity, improve efficiency, or offer alternative 
design paths. If your proposal could benefit from this direction, we value 
your feedback.

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                 reply	other threads:[~2026-02-23 19:29 UTC|newest]

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