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How does a cryptocurrency puzzle/challenge transaction work?

Bitcoin Stack Exchange

Bitcoin News / Bitcoin Stack Exchange 144 Views

The answer completely depends on the nature of the bounty / puzzle that is to be solved.

For example, if the solution to the puzzle is (or leads to) a BIP-39 mnemonic seed phrase or WIF private key, then the solver could use that information to recover a wallet that contains the prize funds, and thus would not need to contact anyone in order to claim it.

On the other hand, if the solution to the puzzle isn't related to a key that allows you to claim the prize coins, then the solver would obviously need to contact the puzzle-maker in order to claim their prize.

Note that there other ways to create anonymously-claimable bounties/puzzles as well, such that the locking script to the transaction is itself the puzzle. For example, the hash collision bounties that exist in the bitcoin UTXO set. Claiming that sort of prize requires additional considerations though: since there is no zero-knowledge proof component to the scriptsig, you'd have to mine the block that includes the prize-claiming transaction yourself.


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