"Scriptless scripts" enhance privacy and functionality in Bitcoin smart contracts by allowing for the creation of complex smart contracts without revealing the details of the contract on the blockchain. This is achieved by using cryptographic techniques, such as zero-knowledge proofs, to validate transactions without the need to reveal the underlying script or contract logic. This enhances privacy by keeping the details of the smart contract hidden from the public, while still enabling complex and secure transactions to take place on the Bitcoin network. Additionally, scriptless scripts also improve the scalability of Bitcoin smart contracts by reducing the amount of data that needs to be stored on the blockchain, leading to more efficient and faster transaction processing.