This proposal defines a new transaction digest algorithm for signature verification in version 0 witness program, in order to minimize redundant data hashing in verification, and to cover the input value by the signature.
There are 4 ECDSA signature verification codes in the original Bitcoin script system: <code>CHECKSIG</code>, <code>CHECKSIGVERIFY</code>, <code>CHECKMULTISIG</code>, <code>CHECKMULTISIGVERIFY</code> (“sigops”). According to the sighash type (<code>ALL</code>, <code>NONE</code>, <code>SINGLE</code>, <code>ANYONECANPAY</code>), a transaction digest is generated with a double SHA256 of a serialized subset of the transaction, and the signature is verified against this digest with a given public key. The detailed procedure is described in a Bitcoin Wiki article. <ref name=wiki>[https://en.bitcoin.it/wiki/OP_CHECKSIG]</ref>
* For the verification of each signature, the amount of data hashing is proportional to the size of the transaction. Therefore, data hashing grows in O(n<sup>2</sup>) as the number of sigops in a transaction increases. While a 1 MB block would normally take 2 seconds to verify with an average computer in 2015, a 1MB transaction with 5569 sigops may take 25 seconds to verify. This could be fixed by optimizing the digest algorithm by introducing some reusable “midstate”, so the time complexity becomes O(n). <ref>[https://web.nvd.nist.gov/view/vuln/detail?vulnId=CVE-2013-2292 CVE-2013-2292]</ref><ref>[https://bitcointalk.org/?topic=140078 New Bitcoin vulnerability: A transaction that takes at least 3 minutes to verify]</ref><ref>[http://rusty.ozlabs.org/?p=522 The Megatransaction: Why Does It Take 25 Seconds?]</ref>
* The algorithm does not involve the amount of Bitcoin being spent by the input. This is usually not a problem for online network nodes as they could request for the specified transaction to acquire the output value. For an offline transaction signing device ("cold wallet"), however, the unknowing of input amount makes it impossible to calculate the exact amount being spent and the transaction fee. To cope with this problem a cold wallet must also acquire the full transaction being spent, which could be a big obstacle in the implementation of lightweight, air-gapped wallet. By including the input value of part of the transaction digest, a cold wallet may safely sign a transaction by learning the value from an untrusted source. In the case that a wrong value is provided and signed, the signature would be invalid and no funding might be lost. <ref>[https://bitcointalk.org/index.php?topic=181734.0 SIGHASH_WITHINPUTVALUE: Super-lightweight HW wallets and offline data]</ref>
Deploying the aforementioned fixes in the original script system is not a simple task. That would be either a hardfork, or a softfork for new sigops without the ability to remove or insert stack items. However, the introduction of segregated witness softfork offers an opportunity to define a different set of script semantics without disrupting the original system, as the unupgraded nodes would always consider such a transaction output is spendable by arbitrary signature or no signature at all. <ref>[https://github.com/bitcoin/bips/blob/master/bip-0141.mediawiki BIP141: Segregated Witness (Consensus layer)]</ref>
# <code>OP_CODESEPARATOR</code>(s) after the last executed <code>OP_CODESEPARATOR</code> are not removed from the <code>scriptCode</code> (the last executed <code>OP_CODESEPARATOR</code> and any script before it are always removed);
# <code>SINGLE</code> does not commit to the input index. When <code>ANYONECANPAY</code> is not set, the semantics are unchanged since <code>hashPrevouts</code> and <code>outpoint</code> together implictly commit to the input index. When <code>SINGLE</code> is used with <code>ANYONECANPAY</code>, omission of the index commitment allows permutation of the input-output pairs, as long as each pair is located at an equivalent index.
*For <code>P2WPKH</code> witness program, the <code>scriptCode</code> is <code>0x1976a914{20-byte-pubkey-hash}88ac</code>.
*For <code>P2WSH</code> witness program,
**if the <code>witnessScript</code> does not contain any <code>OP_CODESEPARATOR</code>, the <code>scriptCode</code> is the <code>witnessScript</code> serialized as scripts inside <code>CTxOut</code>.
**if the <code>witnessScript</code> contains any <code>OP_CODESEPARATOR</code>, the <code>scriptCode</code> is the <code>witnessScript</code> but removing everything up to and including the last executed <code>OP_CODESEPARATOR</code> before the signature checking opcode being executed, serialized as scripts inside <code>CTxOut</code>. (The exact semantics is demonstrated in the examples below)
*If none of the <code>ANYONECANPAY</code>, <code>SINGLE</code>, <code>NONE</code> sighash type is set, <code>hashSequence</code> is the double SHA256 of the serialization of <code>nSequence</code> of all inputs;
*If the sighash type is neither <code>SINGLE</code> nor <code>NONE</code>, <code>hashOutputs</code> is the double SHA256 of the serialization of all output amount (8-byte little endian) with <code>scriptPubKey</code> (serialized as scripts inside CTxOuts);
*If sighash type is <code>SINGLE</code> and the input index is smaller than the number of outputs, <code>hashOutputs</code> is the double SHA256 of the output amount with <code>scriptPubKey</code> of the same index as the input;
*Otherwise, <code>hashOutputs</code> is a <code>uint256</code> of <code>0x0000......0000</code>.<ref>In the original algorithm, a <code>uint256</code> of <code>0x0000......0001</code> is commited if the input index for a <code>SINGLE</code> signature is greater than or equal to the number of outputs. In this BIP a <code>0x0000......0000</code> is commited, without changing the semantics.</ref>
The <code>hashPrevouts</code>, <code>hashSequence</code>, and <code>hashOutputs</code> calculated in an earlier verification may be reused in other inputs of the same transaction, so that the time complexity of the whole hashing process reduces from O(n<sup>2</sup>) to O(n).
As a default policy, only compressed public keys are accepted in <code>P2WPKH</code> and <code>P2WSH</code>. Each public key passed to a sigop inside version 0 witness program must be a compressed key: the first byte MUST be either <code>0x02</code> or <code>0x03</code>, and the size MUST be 33 bytes. Transactions that break this rule will not be relayed or mined by default.
Since this policy is preparation for a future softfork proposal, to avoid potential future funds loss, users MUST NOT use uncompressed keys in version 0 witness programs.
To ensure consistency in consensus-critical behaviour, developers should test their implementations against all the tests below. More tests related to this proposal could be found under https://github.com/bitcoin/bitcoin/tree/master/src/test/data .
The serialized signed transaction is: 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
The following is an unsigned transaction: 0100000001db6b1b20aa0fd7b23880be2ecbd4a98130974cf4748fb66092ac4d3ceb1a54770100000000feffffff02b8b4eb0b000000001976a914a457b684d7f0d539a46a45bbc043f35b59d0d96388ac0008af2f000000001976a914fd270b1ee6abcaea97fea7ad0402e8bd8ad6d77c88ac92040000
The serialized signed transaction is: 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
The serialized signed transaction is: 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
The following is an unsigned transaction: 010000000136641869ca081e70f394c6948e8af409e18b619df2ed74aa106c1ca29787b96e0100000000ffffffff0200e9a435000000001976a914389ffce9cd9ae88dcc0631e88a821ffdbe9bfe2688acc0832f05000000001976a9147480a33f950689af511e6e84c138dbbd3c3ee41588ac00000000
hash preimage for ALL: 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
hash preimage for NONE: 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
hash preimage for SINGLE: 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
hash preimage for ALL|ANYONECANPAY: 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
hash preimage for NONE|ANYONECANPAY: 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
hash preimage for SINGLE|ANYONECANPAY: 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
The serialized signed transaction is: 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
These examples show that <code>FindAndDelete</code> for the signature is not applied. The transactions are generated in an unconventional way. Instead of signing using a private key, the signatures are pre-determined as part of <code>witnessScript</code>. The public keys are generated with key recovery, using the fixed signatures and the <code>sighash</code> defined in this proposal. Therefore, the private keys are unknown.
The following is an unsigned transaction: 010000000169c12106097dc2e0526493ef67f21269fe888ef05c7a3a5dacab38e1ac8387f14c1d000000ffffffff0101000000000000000000000000
The serialized signed transaction is: 034830450220487fb382c4974de3f7d834c1b617fe15860828c7f96454490edd6d891556dcc9022100baf95feb48f845d5bfc9882eb6aeefa1bc3790e39f59eaa46ff7f15ae626c53e012102a9781d66b61fb5a7ef00ac5ad5bc6ffc78be7b44a566e3c87870e1079368df4c4aad4830450220487fb382c4974de3f7d834c1b617fe15860828c7f96454490edd6d891556dcc9022100baf95feb48f845d5bfc9882eb6aeefa1bc3790e39f59eaa46ff7f15ae626c53e0100000000
The following transaction is a <code>OP_CHECKMULTISIGVERIFY</code> version of the <code>FindAndDelete</code> examples: 010000000001019275cb8d4a485ce95741c013f7c0d28722160008021bb469a11982d47a6628964c1d000000ffffffff0101000000000000000007004830450220487fb382c4974de3f7d834c1b617fe15860828c7f96454490edd6d891556dcc9022100baf95feb48f845d5bfc9882eb6aeefa1bc3790e39f59eaa46ff7f15ae626c53e0148304502205286f726690b2e9b0207f0345711e63fa7012045b9eb0f19c2458ce1db90cf43022100e89f17f86abc5b149eba4115d4f128bcf45d77fb3ecdd34f594091340c0395960101022102966f109c54e85d3aee8321301136cedeb9fc710fdef58a9de8a73942f8e567c021034ffc99dd9a79dd3cb31e2ab3e0b09e0e67db41ac068c625cd1f491576016c84e9552af4830450220487fb382c4974de3f7d834c1b617fe15860828c7f96454490edd6d891556dcc9022100baf95feb48f845d5bfc9882eb6aeefa1bc3790e39f59eaa46ff7f15ae626c53e0148304502205286f726690b2e9b0207f0345711e63fa7012045b9eb0f19c2458ce1db90cf43022100e89f17f86abc5b149eba4115d4f128bcf45d77fb3ecdd34f594091340c039596017500000000
As a soft fork, older software will continue to operate without modification. Non-upgraded nodes, however, will not see nor validate the witness data and will consider all witness programs, including the redefined sigops, as anyone-can-spend scripts.
