👋 Hi there
We’re at present exploring an environment friendly on-chain mechanism to allow multi-output funds inside a single Bitcoin transaction – with out custody, with out PSBT workflows for the sender, and with out further interplay for the primary recipient.
🔹 Core Idea:
A dynamically generated P2WSH deal with acts because the cost recipient.
Two predefined outputs are established when creating this deal with:
Output 1 = Most important recipient (e.g., service provider, service supplier, vendor).
Output 2 = Versatile occasion (multi-sig succesful, automated signature).
The sender (enter) merely sends a regular Bitcoin transaction to this deal with – no PSBT required.
The signing logic ensures BTC is robotically distributed on-chain with out requiring the recipient to manually signal something.
🛠 Technical Mechanism:
✅ P2WSH as a Native Splitting Mechanism
The P2WSH deal with is created based mostly on two mounted outputs.
Enter funds go on to this deal with, and the distribution is enforced by way of the script.
✅ No Interplay Required from the Most important Recipient (Output 1)
Output 1 receives BTC instantly, no multi-sig requirement for retailers.
If multi-sig is used, solely Output 2 acts because the versatile signing occasion.
✅ Automated Signing & Safety Mechanism by way of Output 2
If a 1-of-2 signature scheme is used, Output 2 handles validation.
If a 2-of-3 multi-sig scheme is used, Output 2 could be versatile (e.g., an HSM that indicators inside seconds).
✅ No Pockets Restrictions for Sender & Recipient
Sender (Enter): Solely wants a regular pockets that may ship BTC.
Recipient (Output 1): Solely wants a pockets that may obtain BTC.
Solely Output 2 must be multi-sig succesful, if an automatic mechanism is used.
🔥 Benefits of this Strategy:
✔ On-Chain UTXO Effectivity → No pointless transfers; BTC is instantly cut up.
✔ Full Consumer Management → No custody, no centralized holding of funds.
✔ Quick Execution With out PSBT Overhead → Retailers don’t must work together, no guide signing required.
✔ No Pockets Limitations for Sender & Service provider → Works with commonplace Bitcoin wallets.
May This Be MiCA-Free?
One of many greatest benefits of this method is that, if structured accurately, it may fall outdoors of MiCA regulation.
For the reason that platform by no means holds BTC, it may keep away from being labeled as a custodian.
All the transaction course of is self-executing on-chain, which means no funds are ever managed by a 3rd celebration.
The versatile Output 2 mechanism ensures safety with out creating an middleman danger.
Nonetheless, earlier than we finalize this method, we’d wish to get insights from Bitcoin builders on the technical feasibility of the system.
Open Technical Questions for the Neighborhood:
1️⃣ Can the sender’s regular P2WSH transaction be robotically counted as the primary signature?
2️⃣ Would a 1-of-2 signature setup work, the place Output 2 acts because the versatile validation occasion?
3️⃣ Can RBF be absolutely disabled for this particular transaction to forestall any modifications post-signing?
4️⃣ Are there alternate options to PSBT/HSM for the second signature that stay safe, scalable, and non-custodial?
We’re excited to listen to your suggestions – does this idea have potential, or are there technical limitations we could have ignored?
Greatest regards and thanks!
