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Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
LABS
Services

Covenant Transaction Design

Engineering advanced Bitcoin transaction constraints (covenants) using Script to control future spending of funds, enabling complex decentralized finance and vault-like security models.
Chainscore © 2026
overview
CORE ENGINEERING

Smart Contract Development

Secure, production-ready smart contracts built for scale and compliance.

We architect and deploy custom smart contracts that form the operational backbone of your Web3 application. Our development process is built on security-first principles, utilizing battle-tested libraries like OpenZeppelin and rigorous audit patterns to mitigate risk from day one.

  • Token Standards: Full-stack implementation of ERC-20, ERC-721, ERC-1155, and custom tokenomics.
  • Protocol Logic: Complex DeFi mechanisms, governance systems, and automated market makers.
  • Gas Optimization: Code reviews and architecture designed for up to 40% lower transaction costs.
  • Full Audit Trail: Comprehensive testing suite and preparation for third-party audits by firms like CertiK or Quantstamp.

From a 2-week MVP to a mainnet launch, we deliver contracts that are secure, efficient, and ready to handle real user volume.

key-features-cards
PRODUCTION-READY

Core Covenant Engineering Capabilities

We architect and implement Bitcoin covenants that are secure, efficient, and tailored to your specific business logic. Our engineering process ensures your transaction designs are production-ready from day one.

01

Custom Script & Taproot Design

We build complex spending conditions using P2TR, Tapscripts, and Miniscript, enabling sophisticated DeFi logic, vaults, and time-locked transactions directly on Bitcoin.

> 5 years
Bitcoin Script Experience
Miniscript
Formal Verification
02

Security-First Architecture

Every covenant design undergoes threat modeling and peer review. We implement best practices for key management, path validation, and fee management to eliminate attack vectors.

Multi-Sig
Default Architecture
Peer Review
Mandatory Process
03

Protocol Integration

Seamlessly integrate covenants with layer-2 solutions like Lightning Network, rollups, and sidechains. We ensure interoperability and optimal performance across the Bitcoin ecosystem.

RGB, Lightning
L2 Protocols
REST & gRPC
API Standards
04

Gas Optimization & Fee Management

We engineer covenants for minimal on-chain footprint and predictable fee costs. Our designs use sighash flags and input/output optimization to reduce transaction size by up to 40%.

≤ 40%
Size Reduction
Sighash_ANYONECANPAY
Fee Technique
05

Modular & Upgradeable Design

Build future-proof covenants with modular script components and planned upgrade paths using OP_CAT emulation or presigned transactions, avoiding protocol ossification.

Presigned TX
Upgrade Mechanism
Modular
Component Design
06

Full Lifecycle Support

From initial design and simulation to mainnet deployment and monitoring. We provide the tooling and expertise to manage your covenant's entire operational lifecycle.

Bitcoin Core
Test Environment
24/7
Monitoring Available
benefits
TANGIBLE RESULTS

Business Outcomes of Bitcoin Covenant Development

Our covenant transaction design delivers specific, measurable improvements to your Bitcoin-based applications, from enhanced security to new revenue streams.

01

Enhanced Asset Security & Control

Implement multi-signature vaults and time-locked recoveries to prevent unauthorized transfers and reduce custodial risk. We build with battle-tested Taproot scripts and PSBT workflows.

0
Critical Vulnerabilities
100%
Client Fund Safety
02

Automated Treasury Management

Deploy non-custodial DAO treasuries with automated, rule-based disbursements. Eliminate manual approval bottlenecks and enable transparent, on-chain governance for your organization.

90%
Faster Payouts
24/7
Automated Operation
03

New DeFi & Lending Primitives

Unlock Bitcoin-native DeFi with collateralized loans, non-custodial escrows, and trust-minimized swaps. We engineer covenants for platforms like Fedimint and Lightning to create novel financial products.

< 2 weeks
Prototype to MVP
Sub-Second
Settlement Finality
04

Regulatory Compliance by Design

Embed travel rule (FATF) logic and sanctioned address checks directly into transaction validation. Achieve compliance without centralized intermediaries, using decentralized attestations.

Audit-Ready
Code & Logic
KYC/AML
Programmable Rules
05

Scalable Payment Channels & Statechains

Build high-throughput payment systems with off-chain state transitions secured by on-chain covenants. Enable instant, low-fee micropayments for your users at scale.

10k+
TPS Capacity
< 1 cent
Avg. Tx Fee
Choose Your Implementation Path

Structured Covenant Development Packages

Compare our tiered service levels for Bitcoin covenant transaction design and development, from initial audit to full managed deployment.

Feature / DeliverableDesign & AuditFull ImplementationManaged Enterprise

Initial Architecture Review

Covenant Logic Design (e.g., CLTV, CSV, Taproot)

1 Complex Script

Up to 3 Script Templates

Custom Multi-Sig Schemes

Security Audit & Penetration Testing

Basic Review

Comprehensive Report

Comprehensive + Third-Party Verification

Transaction Mempool Simulation

Mainnet Deployment & Funding

Integration Support (Wallet/Light Client)

Documentation & Examples

Direct SDK Integration

Post-Deployment Monitoring (30 days)

Ongoing Support & Upgrade SLA

Ad-hoc

Business Hours

24/7 with 4h Response

Typical Timeline

2-3 weeks

4-6 weeks

8+ weeks (Custom)

Investment

From $15K

From $50K

Custom Quote

how-we-deliver
PROVEN METHODOLOGY

Our Bitcoin-First Development Process

A systematic approach to covenant transaction design that prioritizes Bitcoin's unique security model, ensuring robust, scalable, and maintainable solutions from day one.

01

Protocol & Use Case Analysis

We deconstruct your business logic to map it onto Bitcoin's UTXO model, identifying the optimal covenant primitives (e.g., CTV, APO, CSFS) and scripting patterns for your specific application.

2-3 days
Initial Design Sprint
100%
UTXO-First Design
02

Architecture & Script Design

Our engineers architect the transaction flow, design Taproot scripts (Schnorr/MuSig), and model the state machine, ensuring security and efficiency are baked into the covenant's structure.

Miniscript
Formal Verification
Taproot
Native Integration
03

Implementation & Simulation

We implement the covenant logic in Rust or C++, rigorously test it in a simulated environment (Bitcoin Inquisition, Signet), and validate all edge cases and failure modes before mainnet.

1000+
Test Cases
Signet
Live Simulation
04

Security Audit & Peer Review

Every covenant design undergoes internal review against Bitcoin's security assumptions and is prepared for external audit. We document attack vectors and mitigation strategies.

Internal Review
Mandatory Step
Audit-Ready
Deliverable
05

Integration & Wallet Support

We provide integration libraries (SDKs) and work with wallet providers to ensure compatibility, delivering a seamless developer and end-user experience for your application.

TypeScript/Python
SDK Support
BDK/LDK
Wallet Compatibility
06

Deployment & Monitoring

We assist with the mainnet deployment strategy, set up monitoring for covenant activity and fee management, and provide ongoing support for protocol upgrades.

Gradual Rollout
Deployment Plan
24/7
Post-Launch Monitoring
Technical & Commercial Insights

Bitcoin Covenant Development: Frequently Asked Questions

Get clear answers on timelines, costs, and technical specifics for implementing Bitcoin covenants to secure your protocol's logic.

Our process is structured for clarity and security. We begin with a Technical Specification & Threat Modeling phase (1-2 weeks) to define the covenant's logic, constraints, and attack vectors. This is followed by Implementation & Internal Review (2-3 weeks) where our senior developers write and test the Taproot scripts. The final phase is External Audit & Deployment (1-2 weeks), where a third-party auditor reviews the code before we assist with on-chain deployment. We provide a fixed-price quote after the specification phase.

ENQUIRY

Get In Touch
today.

Our experts will offer a free quote and a 30min call to discuss your project.

NDA Protected
24h Response
Directly to Engineering Team
10+
Protocols Shipped
$20M+
TVL Overall
NDA Protected Directly to Engineering Team
Covenant Transaction Design | Chainscore Labs | ChainScore Guides