CRYPTOCURRENCY

Ethereum: complete list of “special cases” when executing a Bitcoin Script (p2sh, p2wsh, etc.)?

Ethereum: Understanding Special Cases During Bitcoin Script Execution

When interacting with Bitcoin networks, particularly during the execution of Bitcoin Scripts, it’s essential to be aware of several “special cases” that deviate from the standard procedure. These exceptions require a deeper understanding of both Bitcoin and Ethereum ecosystems, as well as their respective scripts.

۱. p2sh (Pay-to-ScriptHash)

The p2sh script type is used for payments, where the recipient’s address is derived from the scriptPubKey instead of a hardcoded address. When executing a p2sh transaction, the interpreter performs extra verification to ensure that the sender has sufficient funds in their wallet.

To understand this process, it’s crucial to grasp how Bitcoin Script executes:

  • The script is executed by the node, which verifies its validity and integrity.

  • The scriptSig is verified using a hash of the entire script, including the p2sh instruction.

  • The scriptPubKey is then extracted from the resulting hash and used for payment.

Example:

Suppose Alice wants to send 10 BTC to Bob’s address derived from his scriptPubKey (0x...). During execution:

  • The node verifies the validity of the Bitcoin transaction, including the recipient address.

  • It extracts the p2sh instruction and creates a hash that includes the entire script (scriptSig + p2sh).

  • This resulting hash is then used to derive Bob’s payment address (0x...).

۲. p2wsh (Pay-to-Wealth)

The p2wsh script type is similar to p2sh, but with an additional layer of complexity:

  • The recipient’s wealth is derived from their wallet balance instead of a hardcoded address.

  • When executing a p2wsh transaction, the interpreter performs extra verification to ensure that the sender has sufficient funds in their wallet.

Example:

Suppose Alice wants to send 10 BTC to Bob’s address derived from his wallet balance (0x...). During execution:

  • The node verifies the validity of the Bitcoin transaction, including the recipient address.

  • It extracts the p2wsh instruction and creates a hash that includes the entire script (scriptSig + p2wsh).

  • This resulting hash is then used to derive Bob’s wealth (0x...).

۳. p2co (Pay-to-Contract)

Ethereum: Full list of

The p2co script type allows for the execution of contracts on other nodes:

  • The contract’s bytecode is extracted from a contract address.

  • When executing a p2co transaction, the interpreter performs extra verification to ensure that the sender has sufficient funds in their wallet.

Example:

Suppose Alice wants to execute a contract created by Bob (0x...) on another node. During execution:

  • The node verifies the validity of the Bitcoin transaction.

  • It extracts the contract bytecode from the contract address (0x...).

  • This resulting bytecode is then used for the p2co instruction.

۴. p2pay (Pay-to-Address)

The p2pay script type allows for the payment of a specific address:

  • The sender’s address is derived from their wallet balance.

  • When executing a p2pay transaction, the interpreter performs extra verification to ensure that the recipient has sufficient funds in their wallet.

Example:

Suppose Alice wants to send 10 BTC to Bob’s address (0x...). During execution:

  • The node verifies the validity of the Bitcoin transaction.

  • It extracts Bob’s wealth balance from his wallet.

  • This resulting balance is then used for the p2pay instruction.

۵. p2wshPay (Pay-to-Wealth and Pay-to-Address)

The p2wshPay script type combines both p2wsh and p2pay:

  • The recipient’s wealth is derived from their wallet balance.

  • When executing a p2wshPay transaction, the interpreter performs extra verification to ensure that the sender has sufficient funds in their wallet.

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