Misha Komarov resurrects and proves viable an old idea: can we implement covenants on Bitcoin by using Functional Encryption & predicate verification? Komarov explains Bitcoin PIPEs, AKA “Polynomial Inner-Product Encryption scheme” where an encrypted key can be decoded with a ciphertext, producing only transactions valid from a covenant.
- Discusses cryptographic techniques, such as Schnorr signatures and zero-knowledge proofs, to overcome Bitcoin Script limitations and enable advanced verification methods.
- Bitcoin PIPEs open up Stateless Covenants, “enabling CTV functionality”
- Implementation requires solving 60,000+ blob equations and extensive matrix operations.
- Relies on pairing-based cryptography and advanced mathematical frameworks.
