In this episode, Stephan sits down with Arbedout to explore one of the most debated technical topics in Bitcoin today: covenants, vaults, and the future of Bitcoin custody infrastructure.

They discuss why many people may be misunderstanding where the real demand for covenants comes from, and how covenant-related features could improve Bitcoin self-custody through vaults, spending limits, recovery mechanisms, and more secure long-term storage setups.

The conversation also explores Bitcoin adoption, conviction, long-term store of value dynamics, and the psychological challenges of holding Bitcoin through volatility.

Timestamp:

(00:00) – The privacy problem with co-signing today

(03:25) – What does Sigbash allow us to do?

(08:15) – What is Oblivious Signing? 

(12:20) – Privacy, Regulation, and Reducing Multisig Honeypot Risks

(15:10) - What does Sigbash use look like in practice? Inheritance, Vaults, and Multisig

(19:50) - Can the server grief the user?

(21:10) – Mobile Wallets, Assisted Self-Custody, and NeoBank Possibilities

(25:50) - Sigbash project and product

(28:29) – Sigbash vs PIPES vs BinoHash Explained

(33:01) – Covenant Demand, Bitcoin Security, and the Future of Self-Custody

(36:33) – Closing Thoughts

Links: 

• https://sigbash.com/

• https://x.com/arbedout

Stephan Livera links:

• Follow me on X: @stephanlivera

• Subscribe to the podcast

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