Since 2016, I have made a number of proposals for the next generation of 
script. Since then, there has been a lot of exciting development on this topic. 
The most notable ones are Taproot and Graftroot proposed by Maxwell. It seems 
the most logical way is to implement MAST and other new script functions inside 
Taproot and/or Graftroot. Therefore, I substantially simplified my earlier 
proposal on SIGHASH2. It is a superset of the existing SIGHASH and the BIP118 
SIGHASH_NOINPUT, with further flexibility but not being too complicated. It 
also fixes some minor problems that we found in the late stage of BIP143 
review. For example, the theoretical (but not statistical) possibility of 
having same SignatureHash() results for a legacy and a witness transaction. 
This is fixed by padding a constant at the end of the message so collision 
would not be possible.

A formatted version and example code could be found here:
https://github.com/jl2012/bips/blob/sighash2/bip-sighash2.mediawiki
https://github.com/jl2012/bitcoin/commits/sighash2


========

BIP: YYY
  Layer: Consensus (soft fork)
  Title: Signature checking operations in version 1 witness program
  Author: Johnson Lau <jl2...@xbt.hk>
  Comments-Summary: No comments yet.
  Comments-URI: https://github.com/bitcoin/bips/wiki/Comments:BIP-0YYY
  Status: Draft
  Type: Standards Track
  Created: 2017-07-19
  License: BSD-3-Clause


*Abstract

This BIP defines signature checking operations in version 1 witness program.

*Motivation

Use of compact signatures to save space.

More SIGHASH options, more flexibility

*Specification

The following specification is applicable to OP_CHECKSIG and OP_CHECKSIGVERIFY 
in version 1 witness program.

**Public Key Format

The pubic key MUST be exactly 33 bytes.

If the first byte of the public key is a 0x02 or 0x03, it MUST be a compressed 
public key. The signature is a Schnorr signature (To be defined separately)

If the first byte of the public key is neither 0x02 nor 0x03, the signature is 
assumed valid. This is for future upgrade.

**Signature Format

The following rules apply only if the first byte of the public key is a 0x02 or 
0x03.

If the signature size is 64 to 66 byte, it MUST be a valid Schnorr signature or 
the script execution MUST fail (cf. BIP146 NULLFAIL). The first 32-byte is the 
R value in big-endian. The next 32-byte is the S value in big-endian. The 
remaining data, if any, denotes the hashtype in little-endian (0 to 0xffff).

hashtype MUST be minimally encoded. Any trailing zero MUST be removed.

If the signature size is zero, it is accepted as the "valid failing" signature 
for OP_CHECKSIG to return a FALSE value to the stack. (cf. BIP66)

The script execution MUST fail with a signature size not 0, 64, 65, or 66-byte.

**New hashtype definitions

hashtype and the SignatureHash function are re-defined:

  Double SHA256 of the serialization of:
     1. nVersion (4-byte little endian)
     2. hashPrevouts (32-byte hash)
     3. hashSequence (32-byte hash)
     4. outpoint (32-byte hash + 4-byte little endian)
     5. scriptCode (serialized as scripts inside CTxOuts)
     6. nAmount (8-byte little endian)
     7. nSequence (4-byte little endian)
     8. hashOutputs (32-byte hash)
     9. nLocktime (4-byte little endian)
    10. nInputIndex (4-byte little endian)
    11. nFees (8-byte little endian)
    12. hashtype (4-byte little endian)
    13. sigversion (4-byte little endian for the fixed value 0x01000000)

The bit 0 to 3 of hashtype denotes a value between 0 and 15:

        • If the value is 1, the signature is invalid.
        • If the value is 3 or below, hashPrevouts is the hash of all input, 
same as defined in BIP143. Otherwise, it is 32-byte of 0x0000......0000.
        • If the value is 7 or below, outpoint is the COutPoint of the current 
input. Otherwise, it is 36-byte of 0x0000......0000.
        • If the value is 0, hashSequence is the hash of all sequence, same as 
defined in BIP143. Otherwise, it is 32-byte of 0x0000......0000.
        • If the value is even (including 0), nSequence is the nSequence of the 
current input. Otherwise, it is 0x00000000.
        • If the value is 6, 7, 10, 11, 14, or 15, nInputIndex is 0x00000000. 
Otherwise, it is the index of the current input.
        • If the value is 11 or below, nAmount is the value of the current 
input (same as BIP143). Otherwise, it is 0x0000000000000000.

The bit 4 and 5 of hashtype denotes a value between 0 and 3:

        • If the value is 0, hashOutputs is same as the SIGHASH_ALL case in 
BIP143 as a hash of all outputs.
        • If the value is 1, the signature is invalid.
        • If the value is 2, hashOutputs is same as the SIGHASH_SINGLE case in 
BIP143 as a hash of the matching output. If a matching output does not exist, 
hashOutputs is 32-byte of 0x0000......0000.
        • If the value is 3, hashOutputs is 32-byte of 0x0000......0000.
If bit 6 is set (SIGHASH2_NOFEE), nFees is 0x0000000000000000. Otherwise, it is 
the fee paid by the transaction.
If bit 7 is set (SIGHASH2_NOLOCKTIME), nLockTime is 0x00000000. Otherwise, it 
is the transaction nLockTime.

If bit 8 is set (SIGHASH2_NOVERSION), nVersion is 0x00000000. Otherwise, it is 
the transaction nVersion.

If bit 9 is set (SIGHASH2_NOSCRIPTCODE), scriptCode is an empty script. 
Otherwise, it is same as described in BIP143.

Bits 10 to 15 are reserved and ignored, but the signature still commits to 
their value as hashtype.

hashtype of 0 is also known as SIGHASH2_ALL, which covers all the available 
options. In this case the singnature MUST be exactly 64-byte.

hashtype of 0x3ff is also known as SIGHASH2_NONE, which covers nothing and is 
effectively forfeiting the right related to this public key to anyone.

*Rationale

**Signature Format

The current DER format is a complete waste of block space. The new format saves 
~8 bytes per signature.

**New hashtype definitions

The default and most commonly used case is SIGHASH2_ALL. Making it zero size to 
save space. As a result, the bit flags are defined in a negative way (e.g. 
NOLOCKTIME)

Why decouple INPUT and SEQUENCE? Maybe you want NOINPUT but still have a 
relative lock-time?

Why some combinations are missing? To save some bits for useless flags. If you 
sign all inputs, you must know its index and value. If you sign only this 
input, you must know its value, but probably don't know its index in the input 
vector.

Why only allow signing all SEQUENCE if all INPUT are signed? It doesn't make 
much sense if you care about their sequence without even knowing what they are.

Why signing INPUTINDEX? Legacy and BIP143 SINGLE|ANYONECANPAY behaves 
differently for input index. Better make it explicit and optional.

Why signing FEE? Sometimes you don't sign all inputs / outputs but still want 
to make sure the fees amount is correct.

Putting NOVERSION and NOSCRIPTCODE in the second byte makes most signatures 
below 66 bytes:

        • NOVERSION: Currently the only use of transaction version is to 
enforce BIP68. It could be safely assumed that version 2 is used. The only case 
one would like to use NOVERSION is to make the signature compatible with some 
unknown new features that use a different transaction version.
        • NOSCRIPTCODE: It would be very rare if one could make a signature 
without knowing what the script is (at least they know the public key). The 
only scenario that a NOSCRIPTCODE is really needed is the public key being 
reused in different scripts, and the user wants to use a single signature to 
cover all these scripts.
Reserved bits: These bits are ignored but should normally be unset. Users MUST 
NOT set these bits until they are defined by a future proposal, or they might 
lose money.
Why sigversion? Make sure the message digest won't collide with SIGHASH schemes 
in the past (legacy and BIP143) and future (which will use a different 
sigversion).

*Examples

Equivalent SIGHASH2 value for other SIGHASH schemes:
Legacy/BIP143 ALL: 0 (commit to everything)
Legacy/BIP143 SINGLE with matching output: 0x62 (all input, one sequence, one 
output, no fee)
Legacy SINGLE without matching output: 0x3ff (Not exactly. Both signatures 
commit to nothing, but the legacy one is valid only without a matched output. 
Practically, they are both "wildcard" signatures that allow anyone to spend any 
related UTXO)
Legacy/BIP143 NONE: 0x72 (all input, one sequence, no output, no fee)
Legacy/BIP143 ANYONECANPAY|ALL: 0x46 (one input without index, one sequence, 
all output, no fee)
Legacy ANYONECANPAY|SINGLE with matching output: 0x64 (one input with index, 
one sequence, one output, no fee)
Legacy/BIP143 ANYONECANPAY|NONE: 0x76 (one input without index, one sequence, 
no output, no fee)
BIP143 SINGLE without matching output: 0x62 (all input, one sequence, no 
output, no fee)
BIP143 ANYONECANPAY|SINGLE with matching output: 0x66 (one input without index, 
one sequence, one output, no fee)
BIP143 ANYONECANPAY|SINGLE without matching output: 0x66 (one input without 
index, one sequence, no output, no fee)
BIP118 NOINPUT: 0x14b (no input but with value, no index, no sequence, no fee, 
no scriptcode)

Notes:

1. In legacy and BIP143 SIGHASH, only ALL but not other types implicitly 
commits to the fee paid.
2. Legacy SIGHASH always implicitly commits to the input value. BIP143 and 
BIP118 commits to that explicitly.
3. Legacy and BIP143 SIGHASH behaves differently in the case of SINGLE without 
matching output. In legacy SIGHASH it is a true "wildcard signature" that 
allows anyone to spend any related UTXO. In BIP143 such signature applies only 
to a specific UTXO.
4. BIP143 ANYONECANPAY never commits to the input index. Legacy 
ANYONECANPAY|SINGLE implicitly commits to the input index.

*Backward compatibility

This is a soft-fork.

*Deployment

Exact details TBD.

*Reference Implementation

https://github.com/jl2012/bitcoin/commits/sighash2 (To be updated)

*Copyright

This document is licensed as BSD 3-clause.
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