1 sat \ 10 replies \ @itsrealfake 19 Dec 2023 \ on: Opinion on Covenants? bitcoin
My concern is that if covenants are introduced powerful actors will coordinate to push coin into covenant designs which will not allow the coin to be used without meeting certain criteria (imagine on-chain morality police).
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433 sats \ 5 replies \ @benthecarman 19 Dec 2023
They can already do this with multisig or just custodial bitcoin. With custodial they have even more power and can rug pull and be fractional reserve, there's no reason they'd do it the 1000x more complicated way of covenants when they can do it with a custodial wallet.
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0 sats \ 4 replies \ @itsrealfake 20 Dec 2023
I imagine a scenario where adding covenants unlocks the ability for Uncle Gov to order Cashapp to send all withdrawals through a covenant to a user.
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159 sats \ 3 replies \ @benthecarman 20 Dec 2023
that is not how it works, covenants are something you put inside of your wallet/address. unless you opt into it, they can't effect you
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0 sats \ 2 replies \ @itsrealfake 20 Dec 2023
What's to prevent Uncle Gov from demanding that the exchange opt into a covenant at their wallet?
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0 sats \ 1 reply \ @21HunnyBilly 4 Jan
Nothing prevents Uncle Gov from demanding you use their KYC fork of bitcoin either.
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0 sats \ 0 replies \ @itsrealfake 4 Jan
it could be seen as serving the interests of such a hypothetical uncle gov to fork:
  • confuse the information space e.g. "yeah i heard bitcoin is forking a bunch, USDC is probably easier for me to use for now"
  • fork fail scenario == pump & dump, worst case
what does uncle lose for attempting at a fork?
maybe i'm completely dumb... my point in the parent is that: a) it's easier to get the exchange to engage w a forced covenant by the thumbscrews of access to banking services b) imagine the covenant which is written in such a way that only another covenant enforced wallet can be the receiver, receive.
a boa constrictor type situation. it's not hard to imagine this idea coming out of a scenario planning exercise, so it's reasonable to ask, at least.
@delete after 2 weeks
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10 sats \ 1 reply \ @21HunnyBilly 19 Dec 2023
Encumberance happens on the receiving software.
This is effectively the same attack as requiring KYC for all transactions, no covenants needed.
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1 sat \ 0 replies \ @itsrealfake 20 Dec 2023
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0 sats \ 1 reply \ @patrick1 20 Dec 2023
Why hasn't anyone added such encumbrances on Ethereum? I don't think this is actually a big threat.
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0 sats \ 0 replies \ @itsrealfake 20 Dec 2023
because ethereum is already controlled territory.
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