• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

This Hidden Operation Enables Bitcoin Smart Contracts

user avatar

by Giorgi Kostiuk

a year ago


  1. What Is OP_CAT?
  2. What Is Taproot?
  3. What Can OP_CAT Do?

  4. Bitcoin is the OG of crypto. Satoshi Nakamoto launched it in 2009. However, Bitcoin didn’t have a smart contract option. Or did it? In 2010, Nakamoto disabled a function that indirectly allowed for smart contracts. That’s OP_CAT. The times they are a-changin, and we may see a comeback of this piece of script.

    What Is OP_CAT?

    Nakamoto created OP_CAT in 2009 when he created Bitcoin. However, in 2010, he disabled it. OP_CAT can bring smart contracts to Bitcoin. This would allow BTC holders to use it in BTCFi and make their BTC work for them. Currently, there’s a DeFi network on Bitcoin, but that’s all happening on layer 2 chains like Stacks or Rootstock. Putting the OP_CAT script back into action would allow for this to happen on the Bitcoin blockchain itself. It allows two pieces of data, like ‘A’ and ‘B’ to merge and become ‘AB’. Thus, making complex operations easier and simpler. This process is also known as concatenation. Now, the reason Nakamoto disabled OP_CAT is that it took too much memory to execute back in those days.

    What Is Taproot?

    Taproot is a soft fork upgrade for the Bitcoin blockchain. It dates from November 2021. Taproot increases scalability. It also improves efficiency and privacy. Taproot also opened the doors for smart contracts on Bitcoin. Now, with Tapscript, OP_CAT could start to play a role again.

    What Can OP_CAT Do?

    OP_CAT allows developers to build and manipulate larger integers straight within Bitcoin scripts. It also makes creating zero-knowledge apps easier. OP_CAT can allow Bitcoin to have smart contracts, leading to the rise of BitVM.

    Adding the OP_CAT script back into the Bitcoin script would add plenty of advantages. BTCFi would get a strong injection. OP_CAT would open plenty of new BTCFi opportunities. However, new developments in Bitcoin take time. It may not be until 2025 before we see OP_CAT being reactivated.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Starknet STRK Experiences Corrective Phase After Rally

chest

Starknet STRK has entered a corrective phase after a significant rally, showing signs of potential recovery despite bearish trends.

user avatarFilippo Romano

Bitcoin's Resilience Dismisses Tulip Bubble Comparison

chest

Eric Balchunas argues that Bitcoin's endurance over 17 years makes it incomparable to the Tulip Bubble.

user avatarEmily Carter

HBAR Price Experiences Significant Drop Despite Institutional Developments

chest

HBAR price drops by 24% despite institutional developments and increased trading volumes.

user avatarTomas Novak

Rising Bitcoin Liveliness Indicates Mature Bull Market

chest

Bitcoin's liveliness indicator is on the rise, suggesting a continued bull market as long-term holders redistribute their assets.

user avatarKaterina Papadopoulou

Japan's Frustration with US Over Taiwan Tensions

chest

Japan expresses frustration with the US over its silence on escalating tensions with China regarding Taiwan, highlighting geopolitical strains.

user avatarLeo van der Veen

Unverified Surge in Web3 Employment on DeJob

chest

DeJob, a Chinese Web3-focused job platform, has reportedly seen a rise in job seekers, indicating a notable shift in interest towards Web3 employment. However, this surge remains unverified as there are no official announcements or primary sources confirming this significant increase.

user avatarAisha Farooq

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.