Bitcoin Scripts using Node.JS, Kobi Gurkan

Overview
Scripts in Bitcoin
Bitcoin Scripts using Node.JS
Kobi Gurkan
2016-06-11
Kobi Gurkan Bitcoin Scripts using Node.JS

Overview
Scripts in Bitcoin
Outline
1 Overview
Me
Goals
Bitcoin
Scripting language
2 Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
Topic
1 Overview
Me
Goals
Bitcoin
Scripting language
Simple example
Standard Scripts
Special. . .

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
Chief Scientist at Ownership - anti-counterfeiting, supply
chain and certiﬁcation
Founded Shield128 - Blockchain security company
Founded EPOK
Math geek
Blockchain and security enthusiast

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
Understand the Bitcoin scripting language
Review Bitcoin scripts, standard and non-standard
Learn to interpret, craft and test Bitcoin scripts using
Node.JS

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
What is Bitcoin?
Created in 2008 by Satoshi Nakamoto
Uses elliptic curves - asymmetric encryption,
public/private keys
P2P
Proof of work - solves Byzantine Generals Problem in
decentralized way!
For the ﬁrst time, a decentralized system of money
Ledger of transactions
Everyone sees every transaction from the creation of the
network - end of 2008

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
What is Bitcoin?

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
What is Bitcoin?
What is a Bitcoin transaction? Transfer of value from A
to B. Or that’s what they want you to believe. . .
But ﬁrst, let’s review some Bitcoin constructs.

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
Keys

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
Keys
Bitcoin private key - random 256-bit number
Public key - derived from private key directly
Address
Version = 1 byte of 0 (zero); on the test network, this is
1 byte of 111
Key hash = Version concatenated with
RIPEMD-160(SHA-256(public key))
Checksum = 1st 4 bytes of SHA-256(SHA-256(Key
hash))
Bitcoin Address = Base58Encode(Key hash
concatenated with Checksum)
You prove ownership of an address by signing using your
private key - ECDSA

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
Transactions
Source: http://www.righto.com/2014/02/bitcoins-hard-way-using-raw-bitcoin.htmlKobi Gurkan Bitcoin Scripts using Node.JS

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
Transactions
Every transaction has inputs and outputs
Output - credit 100 bitcoins to someone under conditions
- scriptPubKey
Input - spend 100 bitcoins from a previous output by
fulﬁlling the condition - scriptSig
That is, every input spends a previous output
Where are the initial Bitcoins to spend from? As we saw
in the diagram, mining
Because the ledger is public - i.e. you can see the move
of Bitcoins from the miner up to the moment you
received them

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
Source: http://www.righto.com/2014/02/bitcoins-hard-way-using-raw-bitcoin.html

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
So in reality, you can do much more.

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
117 Opcodes (some disabled, some placeholders)
1 byte
Simple language
No loops (=> no inﬁnite loops)
Not turing-complete, intentionally

Overview
Scripts in Bitcoin
Me
Goals
Bitcoin
Scripting language
Stack starts empty
scriptSig is evaluated
scriptPubKey is evaluated
If top of stack is non-zero then the transaction is valid

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Topic
1 Overview
Me
Goals
Bitcoin
Scripting language
Simple example
Standard Scripts
Special. . .

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Stack scriptSig scriptPubKey
5 OP_SUB
2

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
5 2 OP_SUB

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
3
This is actually valid, because the top of the stack is
non-zero.
We could also check the result to verify that we know
math.

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
5 OP_SUB
2 3
OP_EQUAL

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
5 2 OP_SUB
3
OP_EQUAL

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
3 3
OP_EQUAL

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
3 OP_EQUAL
3

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
1 (True)
Transaction valid too, and we indeed know to subtract!

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
This was easy, but might be hard to do by hand for more
complex scripts.
Luckily, BitPay did an awesome job by developing bitcore.

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
> npm install bitcore
> node

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
var bitcore = require(’bitcore’);
var interpreter = bitcore.Script.Interpreter();
interpreter.set({script: ’OP_2 OP_1 OP_SUB’})
interpreter.evaluate()

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Let’s see an interactive step session!
https://asciinema.org/a/bkznx7286g09jleitqdu641xm

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
OK, but on to more honesty. The transaction was not
valid.
There are only a few standard scripts.
But don’t despair - arbitrary scripts are still allowed. I’ll
explain later.

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
P2PK
scriptSig scriptPubKey
<sig> <pubkey>
OP_CHECKSIG
https:
//asciinema.org/a/82dplmciis241l3slxdee5h09
Not widely used anymore because public key is. . . public.

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
P2PKH
<sig> OP_DUP
<pubkey> OP_HASH160
OP_EQUALVERIFY
OP_CHECKSIG
Most used transaction - credit 100 Bitcoins to a hash of a
public key.
Prove you own the address by signing the entire
transaction - OP_CHECKSIG.

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Multisig
OP_0 <m>
<A sig> <A pubkey>
[B sig] <B pubkey>
[C sig...] <C pubkey. . . >
<n>
OP_CHECKMULTISIG
Divide ownership of Bitcoins
Not widely used. Multisig is implemented as script
hash. . .

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Null Data
OP_RETURN
<0 to 80 bytes of data>
https:
//asciinema.org/a/0llb5rtakanx3to35lvcdul39
Can put arbitrary data on Blockchain!
https://twitter.com/op_return_ack/status/
705968000688455684
Open Assets (colored coins) - https:
//github.com/OpenAssets/open-assets-protocol/
blob/master/specification.mediawiki

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
P2SH
<additional opcodes. . . > OP_HASH160
<redeemScript> <Hash160(redeemScript)>
OP_EQUAL
Supports arbitrary scripts!

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
P2SH-based 2-of-3 Multisig
scriptSig redeemScript scriptPubKey
OP_0 <OP_2> OP_HASH160
<A sig> <A pubkey> <PubKeyHash>
[C sig] <B pubkey> <Hash160(redeemScript)>
<redeemScript> <C pubkey. . . > OP_EQUAL
<OP_3>
OP_CHECKMULTISIG
Widely used form of Multisig

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Transaction Puzzle
<data> OP_SHA256
<given_hash>
OP_EQUAL
https://live.blockcypher.com/btc/tx/
9969603dca74d14d29d1d5f56b94c7872551607f8c2d6837ab9715c60721
https://asciinema.org/a/aj92zdz3m61kjkqfg0nghxiq7
Or as P2SH:
https://asciinema.org/a/5sumtxdthpgza5f8z8s1t8jzb
But this is insecure because anyone can see the solution, since
everything is public. . .

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Secure Transaction Puzzle
<sig> OP_SHA256
<pubkey> <given_hash>
<data> OP_EQUALVERIFY
OP_DUP
OP_HASH160
<pubkeyHash>
OP_EQUALVERIFY
OP_CHECKSIG
This is non-standard, of course. But, we can put this script as a
P2SH script.
https://asciinema.org/a/bvk8nockh7dq715qp8avhiw8h

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Zero Knowledge Contingent Payment
OP_SHA256
<Y>
OP_EQUAL
OP_IF
<Seller pubkey>
OP_ELSE
<block_height + 100>
OP_CHECKLOCKTIMEVERIFY
OP_DROP
<Buyer pubkey>
OP_ENDIF
OP_CHECKSIG
https://bitcoincore.org/en/2016/02/26/zero-knowledge-contingent-payments-announcement/
Deposit - https://live.blockcypher.com/btc/tx/
8e5df5f792ac4e98cca87f10aba7947337684a5a0a7333ab897fb9c9d616ba9e
Spend - https://live.blockcypher.com/btc/tx/
200554139d1e3fe6e499f6ffb0b6e01e706eb8c897293a7f6a26d25e39623fae/

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
OP_IF
<now + 3 months>
OP_DROP
<Lenny’s pubkey>
OP_CHECKSIGVERIFY
1
OP_ELSE
2
OP_ENDIF
<Alice’s pubkey>
<Bob’s pubkey>
2
OP_CHECKMULTISIG
Allows to lock Bitcoins until a speciﬁc date!
https://github.com/bitcoin/bips/blob/master/bip-0065.mediawiki

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
At any time:
0
<Alice’s signature>
<Bob’s signature>
0
After 3 months:
0
<Alice/Bob’s signature>
<Lenny’s signature>
1

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Puzzle time!
var bitcore = require(’bitcore’);
var request = require(’request’);
var utxo = {
’txId’ : ’0c5d827a24b0822abbff73f1adbfd2be7efaf4e368b4baac7e280865eb13f497’,
’outputIndex’ : 1,
’script’ : ’a91431f2ae5b333c56a4f01df6209382ec8f892e4f3687’,
’satoshis’ : 1000000
};
//you can see it here:
//https://live.blockcypher.com/btc/tx/0c5d827a24b0822abbff73f1adbfd2be7efaf4e368b4baac7e280865eb13f497
var address = ’YOUR_ADDRESS’;
var tx = new bitcore.Transaction().from(utxo).to(address, 900000);
var redeemScript = bitcore.Script.fromASM(’
OP_SHA256
1bc273366856a5fb0bfd0611f57b7d4ae8e709dbe30fa207729f74716fd4e877
OP_EQUAL’);
//this is your task! what is the total number of Bitcoins that will
//ever be created, in hex format (don’t forget the leading zero!)?
var solutionScript = ’’;
var scriptSig = bitcore.Script.fromASM(solutionScript + ’ ’ + redeemScript);
tx.inputs[0].setScript(scriptSig);
var rawTx = tx.toString(’hex’);

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
var pushTx = {
tx: rawTx
};
//for simplicity, we’ll use the awesome BlockCypher API.
//You could also submit this raw transaction using Bitcoin Core.
request({
url: ’https://api.blockcypher.com/v1/btc/main/txs/push’,
method: ’POST’,
json: true,
body: pushTx
}, function (err, response, body) {
if (err) {
return console.log(’Error: ’, err);
}
console.log(body);
});

Overview
Scripts in Bitcoin
Simple example
Standard Scripts
Special. . .
Questions?
kobigurk@gmail.com
kobigurk.com
@kobigurk
We are hiring!

Bitcoin Scripts using Node.JS, Kobi Gurkan

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Bitcoin Scripts using Node.JS, Kobi Gurkan