From b3654088ccc7d78f5ce45b1b3e68a4dd9e06658c Mon Sep 17 00:00:00 2001
From: Luke Dashjr <luke-jr+git@utopios.org>
Date: Fri, 23 Sep 2016 10:03:34 +0000
Subject: Assign BIP 134: Flexible Transactions

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+<pre>
+  BIP: 134
+  Title: Flexible Transactions
+  Author: Tom Zander <tomz@freedommail.ch>
+  Status: Draft
+  Type: Standards Track
+  Created: 2016-07-27
+</pre>
+
+==Abstract==
+
+This BIP describes the next step in making Bitcoin's most basic element,
+the transaction, more flexible and easier to extend. At the same time this
+fixes all known cases of malleability and resolves significant amounts of
+technical debt.
+
+==Summary==
+
+Flexible Transactions uses the fact that the first 4 bytes in a transaction
+determine the version and that the majority of the clients use a
+non-consensus rule (a policy) to not accept transaction version numbers
+other than those specifically defined by Bitcoin.
+This BIP chooses a new version number, 4, and defines that the data
+following the bytes for the version is in a format called Compact Message
+Format (CMF). CMF is a flexible, token based format where each token is a
+combination of a name, a format and a value. Because the name is added we
+can skip unused tokens and we can freely add new tokens in a simple manner
+in future. Soft fork upgrades will become much easier and cleaner this
+way.
+
+This protocol upgrade cleans up past soft fork changes like BIP68 which
+reuse existing fields and do them in a much better to maintain and easier
+to parse system. It creates the building blocks to allow new features to be
+added much cleaner in the future.
+
+It also shows to be possible to remove signatures from transactions with
+minimal upgrades of software and still maintain a coherent transaction
+history. Tests show that this can reduce space usage to about 75%.
+
+==Motivation==
+
+Token based file-formats are not new, systems like XML and HTMl use a
+similar system to allow future growth and they have been quite successful
+for decades in part because of this property.
+
+Bitcoin needs a similar way of making the transaction future-proof because
+re-purposing not used fields for new features is not good for creating
+maintainable code.
+
+Next to that this protocol upgrade will re-order the data-fields which
+allows us to cleanly fix the malleability issue which means that future
+technologies like Lightning Network will depend on this BIP being deployed.
+
+At the same time, due to this re-ordering of data fields, it becomes very
+easy to remove signatures from a transaction without breaking its tx-id,
+which is great for future pruning features.
+
+
+=== Tokens ===
+
+In the compact message format we define tokens and in this specification we
+define how these tokens are named, where they can be placed and which are
+optional.  To refer to XML, this specification would be the schema of
+a transaction.
+
+CMF tokens are triplets of name, format (like PositiveInteger) and value.
+Names in this scope are defined much like an enumeration where the actual
+integer value (id, below) is equally important to the written name.
+If any token found that is not covered in the next table will make the
+transaction that contains it invalid.
+
+{| class="wikitable"
+|-
+! Name !! id !! Format !! Default Value !! Description
+|-
+|TxEnd         ||  0 ||BoolTrue ||  Required    ||A marker that is end of the transaction.
+|-
+|TxInPrevHash  ||  1 ||ByteArray||  Required    ||TxId we are spending
+|-
+|TxPrevIndex   ||  2 ||Integer  ||      0       ||Index in prev tx we are spending (applied to previous TxInPrevHash)
+|-
+|TxInScript    ||  3 ||ByteArray||  Required    ||The 'input' part of the script
+|-
+|TxOutValue    ||  4 ||Integer  ||  Required    ||Amount of satoshi to transfer
+|-
+|TxOutScript   ||  5 ||ByteArray||  Required    ||The 'output' part of the script
+|-
+|LockByBlock   ||  6 ||Integer  ||  Optional    ||BIP68 replacement
+|-
+|LockByTime    ||  7 ||Integer  ||  Optional    ||BIP68 replacement
+|-
+|ScriptVersion ||  8 ||Integer  ||      2       ||Defines script version for outputs following
+|-
+|NOP_1x        || 1x || . ||  Optional    ||Values that will be ignored by anyone parsing the transaction
+|}
+
+
+=== Scripting changes ===
+
+In the current version of Bitcoin-script, version 1, there are various
+opcodes that are used to validate the cryptographic proofs that users have
+to provide in order to spend outputs.
+
+The OP_CHECKSIG is the most well known and, as its name implies, it
+validates a signature.
+In the new version of 'script' (version 2) the data that is signed is
+changed to be equivalent to the transaction-id. This is a massive
+simplification and also the only change between version 1 and version 2 of
+script.
+
+=== Serialization order===
+
+The tokens defined above shall be serialized in a certain order for the
+transaction to be valid.  Not serializing transactions in the
+order specified would allow multiple interpretations of the data which
+can't be allowed.
+There is still some flexibility and for that reason it is important for
+implementors to remember that the actual serialized data is used for the
+calculation of the transaction-id. Reading and writing it may give you a
+different output and when the txid changes, the signatures will break.
+
+At a macro-level the transaction has these segments. The order of the
+segments can not be changed, but you can skip segments.
+
+{| class="wikitable"
+!Segment !! Description
+|-
+|   Inputs   || Details about inputs.
+|-
+|  Outputs   || Details and scripts for outputs
+|-
+| Additional || For future expansion
+|-
+| Signatures || The scripts for the inputs
+|-
+|   TxEnd    || End of the transaction
+|}
+
+The TxId is calculated by taking the serialized transaction without the
+Signatures and the TxEnd and hashing that.
+
+
+{| class="wikitable"
+!Segment !! Tags !! Description
+|-
+|Inputs||TxInPrevHash and TxInPrevIndex||Index can be skipped, but in any input the PrevHash always has to come first
+|-
+|Outputs||TxOutScript, TxOutValue||Order is not relevant
+|-
+|Additional||LockByBlock  LockByTime NOP_1x
+|-
+|Signatures||TxInScript||Exactly the same amount as there are inputs
+|-
+|TxEnd||TxEnd
+|}
+
+TxEnd is there to allow a parser to know when one transaction in a stream
+has ended, allowing the next to be parsed.
+
+Notice that the token ScriptVersion is currently not allowed because we
+don't have any valid value to give it. But if we introduce a new script
+version it would be placed in the outputs segment.
+
+=== Script v2 ===
+
+The default value of ScriptVersion is number 2, as opposed to the version 1
+of script that the is in use today.  The version 2 is mostly identical
+to version one, including upgrades made to it over the years and in the 
+future. The only exception is that the OP_CHECKSIG is made dramatically
+simpler.  The input-type for OP_CHECKSIG is now no longer configurable, it is
+always '1' and the content that will be signed is the txid.
+
+TODO: does check-multisig need its own mention?
+
+
+=== Block-malleability ===
+
+The effect of leaving the signatures out of the calculation of the
+transaction-id implies that the signatures are also not used for the
+calculation of the merkle tree.  This means that changes in signatures
+would not be detectable. Except naturally by the fact that missing or
+broken signatures breaks full validation. But it is important to detect
+modifications to such signatures outside of validating all transactions.
+
+For this reason the merkle tree is extended to include (append) the hash of
+the v4 transactions. The markle tree will continue to have all the
+transactions' tx-ids but appended to that are the v4 hahes that include the
+signatures as well.  Specifically the hash is taken over a data-blob that
+is build up from:
+
+1. the tx-id
+2. the CMF-tokens 'TxInScript'
+
+
+=== Future extensibility ===
+
+The NOP_1x wildcard used in the table explaining tokens is actually a list
+of 10 values that currently are specified as NOP (no-operation) tags.
+
+Any implementation that supports the v4 transaction format should ignore
+this field in a transaction. Interpreting and using the transaction as if
+that field was not present at all.
+
+Future software may use these fields to decorate a transaction with
+additional data or features. Transaction generating software should not
+trivially use these tokens for their own usage without cooperation and
+communication with the rest of the Bitcoin ecosystem as miners certainly
+have the option to reject transactions that use unknown-to-them tokens.
+
+==Backwards compatibility ==
+
+Fully validating older clients are not compatible with this change.
+
+SPV (simple payment validation) wallets need to be updated to receive or
+create the new transaction type.
+
+This BIP introduces a new transaction format without changing or
+deprecating the existing one or any of its practices. Therefor it is
+backwards compatible for any existing data or parsing-code.
+
+==Reference Implementation==
+
+Bitcoin Classic includes this in its beta releases and a reference
+implementation can be found at;
+
+https://github.com/bitcoinclassic/bitcoinclassic/pull/186
+
+
+==Deployment==
+
+To be determined
+
+==References==
+
+[https://github.com/bitcoinclassic/documentation/blob/master/spec/compactmessageformat.md] CMF
+
+==Copyright==
+
+Copyright (c) 2016 Tom Zander <tomz@freedommail.ch>
+
+This document is licensed under the Open Publication License v1.0
+
+Distribution of substantively modified versions of this document is prohibited without the explicit permission of the copyright holder.
+Distribution of the work or derivative of the work in any standard (paper) book form is prohibited unless prior permission is obtained from the copyright holder.
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