Misha Komarov, founder of crypto research firm alloc init, announced a technology called PIPEs v2 at the Bitcoin 2026 event in Las Vegas on April 29 of this year.
This proposal addresses two limitations of Bitcoin: the inability to program sophisticated spending conditions without changing the protocol, and the difficulty of integrating zero-knowledge proofs (ZK proof), a cryptographic proof that allows you to verify that something is true without revealing the underlying information directly in a mainnet transaction.
The limits listed are derived from the intentionally simple and uncomplicated Bitcoin programming language. Supports some basic spending requirementsblocking funds until a certain date (the mechanism used by inheritance wallets to transfer Bitcoin to beneficiaries after the owner’s death).
Its simplicity leads to more complex conditions, such as releasing funds only if arbitrary cryptographic tests are met. Not possible without changing protocol rules. Some developers, like those of PIPEs v2, are working on extending this programmability without touching consensus.
How does PIPEs v2 work with Bitcoin?
All Bitcoin transactions require a digital signature generated using a private key known only to the owner of the funds. PIPEs v2 does exactly this. Instead of requiring Bitcoin to check additional conditions (things that cannot be done without changing the protocol), PIPEs v2 Encrypt and lock your private key based on predefined conditions.according to a technical document published in February last year.
The mechanism that allows this blocking is called token encryption (witness encryption), an encryption scheme that encrypts the signing key and allows the person attempting to spend the funds to recover it only if they can prove that specified conditions are met.
If the conditions are met, Signing is possible once the key is released. Otherwise, it is mathematically infeasible. From a Bitcoin perspective, this transaction looks like any other transaction. That is, a standard signature with a standard public key.
Regarding the integration of zero-knowledge proofs into Bitcoin transactions, they are used to verify, for example: If a user meets an eligibility condition without disclosing that condition. There’s no need for the main network to do that work either. Token encryption solves that off-chain.
Handan Kılınç Alper, a cryptologist and researcher on the PIPEs v2 team, summarized the principles behind this approach:
If signature validity is the only condition that Bitcoin verifies, then the most powerful spending policy that can be implemented without changing the protocol is one that controls whether valid signatures can be generated.
Handan Kılınç Alper, cryptografa de alloc init.
In response, and after the presentation, Peter Todd, one of Bitcoin Core’s historic developers, commented, “Never underestimate the mathematics of the moon.” This expression implied in the cryptocurrency ecosystem Developments that seem impossible until proven possiblesummarizes the challenges that PIPEs v2 must overcome in Todd’s vision. PIPEs v2 is a mathematically sound proposal, as its practical feasibility on a large scale has not yet been demonstrated.
What are PIPEs v2 actually for?
According to the document, the PIPEs v2 mechanism opens the door to use cases that currently require changes to protocols or more complex mechanisms.
The most specific is security safe (safe in English). These are contracts that lock your funds with strict withdrawal conditions, such as cryptographic verification or waiting period requirements, and prevent anyone from moving funds until those conditions are met. It also enables controlled egress of Layer 2 (L2) protocols such as Lightning Network (LN).
However, according to the alloc init team, PIPEs v2 is currently under research. Current running costs range between $100 and $200 per operation on cloud computing infrastructure. Good for expensive cases, but not for everyday useMeanwhile, the team is working on optimization techniques that can reduce it.
(Tag Translation) Bitcoin (BTC)
