Mastering Bitcoin

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Mastering Bitcoin ( mastering-bitcoin )

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digital notarization service uses the 8-byte prefix “DOCPROOF” which is ASCII en‐ coded as 44f4350524f4f46 in hexadecimal. Keep in mind that there is no “unlocking script” that corresponds to OP_RETURN that could possibly be used to “spend” an OP_RETURN output. The whole point of OP_RE‐ TURN is that you can’t spend the money locked in that output and therefore it does not need to be held in the UTXO set as potentially spendable - OP_RETURN is provably un-spendable. OP_RETURN is usually an output with a zero bitcoin amount, since any bitcoin assigned to such an output is effectively lost forever. If an OP_RETURN is en‐ countered by the script validation software, it results immediately in halting the exe‐ cution of the validation script and marking the transaction as invalid. Thus, if you accidentally reference an OP_RETURN output as an input in a transaction, that trans‐ action is invalid. A standard transaction (one that conforms to the isStandard() checks) can have only one OP_RETURN output. However, a single OP_RETURN output can be combined in a transaction with outputs of any other type. Pay to Script Hash (P2SH) Pay-to-Script-Hash (P2SH) was introduced in the winter of 2012 as a powerful new type of transaction that greatly simplifies the use of complex transaction scripts. To explain the need for P2SH, let’s look at a practical example. In Chapter 1 we introduced Mohammed, an electronics importer based in Dubai. Mo‐ hammed’s company uses bitcoin’s multi-signature feature extensively for its corporate accounts. Multi-signature scripts are one of the most common uses of bitcoin’s advanced scripting capabilities and are a very powerful feature. Mohammed’s company uses a multi-signature script for all customer payments, known in accounting terms as “ac‐ counts receivable” or AR. With the multi-signature scheme, any payments made by customers are locked in such a way that they require at least two signatures to release, from Mohammed and one of his partners or from his attorney who has a backup key. A multi-signature scheme like that offers corporate governance controls and protects against theft, embezzlement or loss. The resulting script is quite long and looks like this: 2 \ 5 OP_CHECKMULTISIG While multi-signature scripts are a powerful feature, they are cumbersome to use. Given the script above, Mohammed would have to communicate this script to every customer prior to payment. Each customer would have to use special bitcoin wallet software with the ability to create custom transaction scripts and each customer would have to un‐ derstand how to create a transaction using custom scripts. Furthermore, the resulting transaction would be about five times larger than a simple payment transaction, as this 134 | Chapter 5: Transactions

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