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Security: foli-sketch/bitcoin-0.2

Security

SECURITY.md

Security Model

Bitcoin Revelation follows a local-verification security model.

Each node independently validates:

  • blocks
  • transactions
  • Proof-of-Work
  • consensus rules

No trust is placed in peers, infrastructure, or external services.


Wallet Security

  • Recovery phrase is displayed once at creation
  • The phrase is never stored on disk
  • Wallet data is encrypted using AES-256-GCM
  • Key derivation uses PBKDF2

Loss of the recovery phrase or wallet password results in permanent loss of funds.

There is no recovery mechanism.


Node Security

  • All data is validated locally
  • Invalid blocks or transactions are rejected
  • Consensus rules are enforced deterministically

Nodes do not rely on:

  • trusted peers
  • checkpoints
  • signed binaries
  • centralized infrastructure

Network Security

  • No trusted bootstrap nodes
  • No privileged peers
  • No network-level authority

Network messages are treated as untrusted input. Consensus validity is determined solely by local verification.


Threat Model Notes

The system is designed to resist:

  • invalid Proof-of-Work
  • invalid transactions
  • timestamp manipulation
  • difficulty collapse
  • transaction forgery

The system does not claim to prevent:

  • 51% hash-power attacks
  • deep historical re-organizations
  • network partitions

These risks are inherent to Proof-of-Work systems.


User Responsibility

Users are responsible for:

  • backing up recovery phrases
  • securing their machines
  • running trusted builds
  • understanding protocol risks

No guarantees are provided.


🧭 CONSENSUS v4 — PLANNING ONLY (NO CODE)

Now, very important: CONSENSUS v4 should not exist yet — only as a design envelope.

This is healthy.


Purpose of Consensus v4

Consensus v4 exists only if one or more of the following become true:

  • sustained hash-rate volatility causes instability
  • difficulty oscillation harms liveness
  • long-range reorgs become a real economic issue
  • network size materially increases

Until then, v3 remains law.


Allowed Scope for v4 (Hard Limits)

Consensus v4 may consider only:

  1. Difficulty Adjustment Improvements

    • Longer adjustment window
    • EMA-style smoothing
    • Better resistance to hash-rate cliffs
  2. Explicit Fork Activation Rules

    • Fixed activation height
    • Explicit version gating
    • No silent behavior changes
  3. Formal Finality Signaling (Optional)

    • Soft finality hints
    • No economic guarantees
    • No checkpoints

Explicitly Out of Scope for v4

Consensus v4 must not include:

  • Proof-of-Stake
  • Checkpoints
  • Trusted signers
  • Governance mechanisms
  • On-chain voting
  • Monetary policy changes
  • Genesis changes

These are non-negotiable exclusions.


Activation Principles

If Consensus v4 ever exists:

  • It must be opt-in
  • It must be version-gated
  • It must be documented before coding
  • It must be announced well in advance
  • It must tolerate permanent forks

No emergency forks. No silent upgrades.


Current Status

  • Consensus v4: NOT IMPLEMENTED
  • Consensus v3: FINAL / FROZEN

Any future work on v4 begins with:

  1. written specification
  2. public review
  3. explicit fork height
  4. independent implementations

There aren’t any published security advisories