Redeem Script
The script that defines spending conditions for a P2SH output; revealed and executed when the coins are spent.
In Pay-to-Script-Hash (P2SH), the output locks coins to the hash of a script instead of placing the full script on-chain immediately. When spending, the transaction reveals the redeem script plus the required data, and nodes verify both the hash match and the script result.
Redeem scripts make complex spending policies possible, but the full script becomes public when used and increases the size of the spending input. Simple single-signature payments usually use simpler address types, while newer script systems may offer different privacy and efficiency trade-offs.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
P2SH
→A script type where the output is locked to the hash of a redeem script, enabling features like multi-sig.
Multi Signature
→A type of digital wallet that requires signatures from multiple private keys to authorize transactions.
Unspent Transaction Output (UTXO)
→A discrete spendable output on a UTXO blockchain, similar to a digital coin that must be spent whole.
Transaction
→A signed data message that asks a blockchain to transfer value, execute code, or update state.
All terms and definitions may update as the Cryptionary improves.
