By the end, you’ll be able to…
- Explain locking conditions and satisfying data.
- Recognize why arbitrary contract assumptions do not transfer.
Three questions to carry into this lesson.
An output carries a condition
Bitcoin transactions create outputs whose scripts constrain how they may be spent. A later spending transaction supplies the required data. In a simple key-based example, the conditions involve a valid signature for the relevant key. More complex constructions can express combinations such as multiple keys and time constraints.
Execution answers a bounded question
Script evaluation determines whether a proposed spend satisfies the applicable rules. It does not consult an external website to determine whether a meal happened. Bitcoin’s model is different from an application with a mutable account database or a general-purpose EVM contract. Familiar words such as contract can hide important differences in state, execution and available primitives.
Review the whole condition
A diagram saying two signatures required is incomplete if there is also an alternative recovery branch after a delay. Conversely, a script that is elegant mathematically may be difficult to back up or operate with available wallets. Separate what the script permits from what a user interface claims and what the organization intends. This lesson explains conditions; it does not ask you to construct or fund a custom script with real assets.
Practice on paper
A fictional spending policy has one path requiring two keys and another available after a delay. What must a reviewer inspect beyond the phrase “two-key wallet”?
I’ve tried it — show the worked answer
They must inspect the alternative path, timing conditions, who controls its keys, wallet support and recovery behavior. A summary that omits a valid branch can misrepresent who can ultimately spend.
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One idea to take with you
A spending policy is the complete set of allowed paths.
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