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BIP-322 Message Signatures

Bitcoin Improvement Proposal 322 (BIP-322) provides a standardized way to create message signatures for any Bitcoin address type, enabling secure ownership verification without revealing private keys.

What is BIP-322?

BIP-322 is a Bitcoin Improvement Proposal that defines a standard for signing arbitrary messages for any Bitcoin script. Unlike older message signing methods that only worked with Legacy addresses, BIP-322 supports all address types including SegWit and Taproot.

Key Benefits:

  • ✅ Works with all Bitcoin address types (Legacy, SegWit, Taproot)
  • ✅ Provides cryptographic proof of address ownership
  • ✅ No private key exposure or Bitcoin transfer required
  • ✅ Industry-standard approach endorsed by the Bitcoin community
  • ✅ Future-proof design compatible with new Bitcoin features

How BIP-322 Works

1. Message Creation

A standardized message is created containing the text to be signed and address information

2. Signature Generation

The wallet creates a cryptographic signature using the private key associated with the address

3. Verification

Anyone can verify the signature mathematically proves ownership of the Bitcoin address

Technical Process:

1

Wallet constructs a virtual Bitcoin transaction that would spend from the address

2

The message is embedded in this virtual transaction using OP_RETURN

3

Wallet signs this virtual transaction with the appropriate signature method

4

The signature can be verified by anyone using standard Bitcoin script validation

Supported Bitcoin Address Types

Legacy (P2PKH)

Addresses starting with 1

✅ Full BIP-322 support

✅ Compatible with all wallets

SegWit (P2SH-P2WPKH)

Addresses starting with 3

✅ Full BIP-322 support

✅ Lower transaction fees

Native SegWit (P2WPKH)

Addresses starting with bc1

✅ Full BIP-322 support

✅ Lowest transaction fees

Taproot (P2TR)

Addresses starting with bc1p

✅ Full BIP-322 support

✅ Enhanced privacy features

Wallet Compatibility

Full Support

  • • Sparrow Wallet
  • • Electrum (latest)
  • • Bitcoin Core
  • • BlueWallet

Partial Support

  • • Wasabi Wallet
  • • Samourai Wallet
  • • Some hardware wallets
  • • Older wallet versions

Not Supported

  • • Very old wallets
  • • Some web wallets
  • • Custodial services
  • • Exchange wallets

💡 Pro Tip

If your wallet doesn't support BIP-322 yet, consider using Sparrow Wallet or Electrum for ReserveBTC verification. You can import your private key or seed phrase temporarily for signing, then remove it afterward.

Security Considerations

✅ Safe Practices

  • • Never share your private keys
  • • Only sign messages you understand
  • • Use wallets from trusted sources
  • • Verify signature contents before signing
  • • Keep wallet software updated
  • • Use hardware wallets when possible

❌ Avoid These

  • • Signing unknown or suspicious messages
  • • Using custodial wallets for signing
  • • Sharing signatures publicly
  • • Using unverified wallet software
  • • Signing with paper wallet tools online
  • • Reusing signatures across platforms

BIP-322 in ReserveBTC

Current Implementation Status

BIP-322 signature verification is currently implemented as a mock for testnet purposes. Full cryptographic verification will be implemented before mainnet deployment.

ReserveBTC is designed to use BIP-322 signatures for Bitcoin address ownership verification, enabling users to prove ownership without transferring Bitcoin to smart contracts.

Planned Message Format

ReserveBTC Verification Message
Bitcoin Address: [your-btc-address]
EVM Address: [your-evm-address]
Timestamp: [unix-timestamp]

Oracle-Based Process

  • 1. User proves Bitcoin address ownership
  • 2. Oracle adds address to monitoring list
  • 3. Oracle monitors Bitcoin balance changes
  • 4. Tokens auto-minted/burned on balance changes