Is OP_CAT happening? The covenants proposal was just assigned BIP number #347. But before we delve deeper, let’s explore what covenants are and why Bitcoiners may want them.

Is Bitcoin an ideal state of digital e-cash or do we want more from our coins on-chain?

Scratching the Surface: Bitcoin Scripts Limitations

To understand covenant proposals like OP_CAT, it’s crucial to grok the fundamental limitations of Bitcoin Script as it is today. Under the hood, Bitcoin allows for the creation of basic smart contracts through codes that define the rules for locking and unlocking funds. However, Bitcoin Script, as a programming language, is fairly limited to basic logic that comes into play only when moving coins in a new transaction.

In Bitcoin today there is no way to pre-configure or dictate your coins’ transaction paths, or how fast coins can move at the time they’re being locked up (aside from hacky workflows using PSBT, partially signed bitcoin transactions, which cannot properly…



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