👋 Hiya
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 extra interplay for the primary recipient.
🔹 Core Idea:
A dynamically generated P2WSH handle acts because the cost recipient.
Two predefined outputs are established when creating this handle:
Output 1 = Primary recipient (e.g., service provider, service supplier, vendor).
Output 2 = Versatile occasion (multi-sig succesful, automated signature).
The sender (enter) merely sends a typical Bitcoin transaction to this handle – no PSBT required.
The signing logic ensures BTC is routinely distributed on-chain with out requiring the recipient to manually signal something.
🛠 Technical Mechanism:
✅ P2WSH as a Native Splitting Mechanism
The P2WSH handle is created based mostly on two fastened outputs.
Enter funds go on to this handle, and the distribution is enforced by way of the script.
✅ No Interplay Required from the Primary Recipient (Output 1)
Output 1 receives BTC straight, 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 may be versatile (e.g., an HSM that indicators inside seconds).
✅ No Pockets Restrictions for Sender & Recipient
Sender (Enter): Solely wants a typical 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 straight cut up.
✔ Full Consumer Management → No custody, no centralized holding of funds.
✔ Quick Execution With out PSBT Overhead → Retailers don’t have to work together, no guide signing required.
✔ No Pockets Limitations for Sender & Service provider → Works with customary Bitcoin wallets.
Might This Be MiCA-Free?
One of many largest benefits of this method is that, if structured accurately, it might fall outdoors of MiCA regulation.
Because the platform by no means holds BTC, it might keep away from being categorized as a custodian.
Your complete 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 threat.
Nevertheless, 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 routinely 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 totally disabled for this particular transaction to stop any modifications post-signing?
4️⃣ Are there 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 might have missed?
Greatest regards and thanks!
