Chia-style Clawbacks on Bitcoin with OP_VAULT

Bitcoin custody is going to get a lot safer with vaults (BIP-345). It will allow a time window for users to clawback BTC from their wallets in case of a compromise.

Deposit your BTC into a vault address and any BTC that leaves the vault will have a clawback period (e.g. 10 blocks) where you can sweep the BTC to a preconfigured recovery address, or just let the clawback period expire and the withdraw can be finalized.

Diagram of user flow for a clawback using OP_VAULT

Check out this demo of OP_VAULT by the original proposer @jamesob to see it in action. Obviously a final implementation within wallets will be much more user friendly.

Crypto needs more robust custody solutions to protect users and BIP-345 is a big step towards that.

Vaults are also the basis of Chia’s improved custody solutions that go beyond clawback and is already in use today securing the pre-farm.

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