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Bitcoin Script Learning Lab

🎯 Goal

Learn Bitcoin Script through hands-on experimentation with real testnet transactions. Understand how Bitcoin's scripting language enables custom spending conditions, multisig wallets, timelocks, and more.

🛠️ Tools & Libraries

  • bitcoinjs-lib - JavaScript Bitcoin library
  • Hiro's multisig repo - Stacks-over-Bitcoin multisig tools
  • Testnet - Safe environment for experimentation
  • Web Interface - Transaction creation and signing

📚 What You'll Learn

1. Basic Bitcoin Script Concepts

  • P2SH (Pay-to-Script-Hash) - How Bitcoin wraps complex scripts
  • Redeem Scripts - The actual spending conditions
  • OpCodes - Bitcoin Script instructions
  • Stack Operations - How Bitcoin Script executes

2. Script Types & Use Cases

  • Multisig - Multiple signatures required
  • Timelocks - Time-based spending conditions
  • Escrow - Dispute resolution mechanisms
  • Hash Locks - Secret-based spending (HTLCs)

3. Real-World Applications

  • Custody Solutions - Secure key management
  • Lightning Network - Payment channels
  • Atomic Swaps - Cross-chain transactions
  • Smart Contracts - Programmable money

🚀 Getting Started

1. Generate Your First Script

# Basic 2-of-2 multisig
node scripts/multisig.js

# Timelock script
node scripts/timelock.js

# Escrow script
node scripts/escrow.js

# Hash lock script
node scripts/hashlock.js

2. Fund Your Scripts

  • Get testnet coins from faucets (see testnet/README.md)
  • Send coins to your generated addresses
  • Monitor on testnet block explorers

3. Test Spending

  • Use the web interface to create transactions
  • Sign with your private keys
  • Broadcast to testnet

📖 Script Examples

Multisig Script

OP_2 <pubkey1> <pubkey2> OP_2 OP_CHECKMULTISIG
  • Requires 2 signatures from 2 public keys
  • Used for shared custody and security

Timelock Script

<locktime> OP_CHECKLOCKTIMEVERIFY OP_DROP <pubkey> OP_CHECKSIG
  • Funds locked until specified time
  • Used for time-based releases and escrow

Hash Lock Script

OP_SHA256 <hash> OP_EQUALVERIFY <pubkey> OP_CHECKSIG
  • Requires knowledge of secret (preimage)
  • Used for atomic swaps and Lightning Network

🔧 Advanced Topics

Script Execution

  1. Input Script - Provides data and signatures
  2. Output Script - Defines spending conditions
  3. Execution - Bitcoin validates the combination
  4. Result - Transaction succeeds or fails

Common OpCodes

  • OP_CHECKSIG - Verify signature
  • OP_CHECKMULTISIG - Verify multiple signatures
  • OP_CHECKLOCKTIMEVERIFY - Check timelock
  • OP_SHA256 - Hash operation
  • OP_EQUALVERIFY - Verify equality

P2SH Benefits

  • Privacy - Script hash hides spending conditions
  • Efficiency - Smaller transaction sizes
  • Flexibility - Complex scripts without revealing details

🧪 Experimentation Ideas

Beginner

  • Create different multisig configurations (2-of-3, 3-of-5)
  • Experiment with timelock durations
  • Test script validation with wrong signatures

Intermediate

  • Combine multiple conditions (multisig + timelock)
  • Create custom escrow scenarios
  • Build hash lock contracts

Advanced

  • Design your own script opcodes
  • Create complex conditional logic
  • Explore Lightning Network scripts

📁 Project Structure

btc-script-lab/
├── scripts/           # Bitcoin Script examples
│   ├── multisig.js    # 2-of-2 multisig
│   ├── timelock.js    # Time-based spending
│   ├── escrow.js      # Dispute resolution
│   └── hashlock.js    # Secret-based spending
├── multisig-stx-btc/  # Web interface for Stacks
├── testnet/           # Testnet guides and tools
└── notes.md           # This learning guide

🔗 Resources

Documentation

Tools

Learning

🎓 Next Steps

  1. Run the examples - Start with multisig.js
  2. Fund your scripts - Get testnet coins and send them
  3. Test spending - Use the web interface to create transactions
  4. Experiment - Try different script combinations
  5. Build - Create your own custom scripts
  6. Explore - Learn about Lightning Network and Layer 2

💡 Tips for Success

  • Start simple - Begin with basic multisig
  • Test everything - Use testnet for all experiments
  • Read the code - Understand how scripts are constructed
  • Experiment freely - Testnet coins have no value
  • Document your learning - Keep notes on what you discover

Happy scripting! 🚀