Guides / Glossary / Timelock
Glossary

Timelock: spending rules that wait

A rule in a bitcoin script that stops a coin, or a particular way of spending it, from being used until a set time or block height.

Education only

Definition. A spending condition that cannot be used until a set block height, date or age of the coin is reached.

How it works

Bitcoin scripts can include time conditions. An absolute timelock, introduced by BIP 65 as CHECKLOCKTIMEVERIFY, says a path cannot be used before a given block height or date. A relative timelock, introduced by BIP 68 and BIP 112 as CHECKSEQUENCEVERIFY, says a path cannot be used until a coin has been unspent for a given number of blocks or a given amount of time. A relative lock measured in blocks can be set up to 65,535 blocks, a little over a year at the ten minute average.

Wallets built on miniscript can combine these conditions with multisig. A common pattern is a primary path, for example 2 of 3 company keys at any time, plus a recovery path, for example a single recovery key or a different set of keys that only becomes usable after a delay.

Why it matters for a company

Timelocks let a company plan for loss without weakening day to day control. If the primary keys are lost, the recovery path becomes available after the delay. If someone tries to misuse the recovery path early, the network simply rejects it. That can make inheritance and keyholder departure easier to plan.

The detail matters. With relative timelocks the clock runs separately for each coin, starting when that coin was received. If the company never moves its coins, the recovery path eventually opens on its own. Wallets that use this pattern therefore expect the company to refresh coins on a schedule, which costs fees and needs a calendar owner. The recovery path also needs the same care as any other key: if it is a single key, it is a single point of failure once the delay has passed.

Example only, fictional. A company sets a primary 2 of 3 path and a recovery path of 2 of 3 different keys held by its solicitor and two non executive directors, usable after about nine months. The finance director diarises a coin refresh every six months, recorded in the key register.

Common mistakes

Sources

Primary sources only. Each link was checked on 9 November 2026. Rules change, so confirm the current version with your adviser.

  1. Bitcoin BIPsBIP 65: CHECKLOCKTIMEVERIFY, absolute locks
  2. Bitcoin BIPsBIP 68: relative lock-time, per-input age and units
  3. Bitcoin BIPsBIP 112: CHECKSEQUENCEVERIFY and delayed script paths
  4. Miniscript authorsMiniscript: structured policies, analysis and compatibility
Education, not advice.

This is general information and education only. It is not financial, investment, tax, accounting, legal or regulatory advice, and it is not a recommendation to buy, sell or hold bitcoin or any other asset. It does not take account of your circumstances or those of your company. You must obtain your own official professional advice to confirm this information is correct before acting on it.

Rules change. This information is correct to our understanding at the last-reviewed date, but it may be incomplete or out of date, and official sources take precedence. Bitcoin is volatile. A company that buys it could lose some or all of the money it puts in.

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