• 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

Bitcoin Network Difficulty Set for Significant Increase

chest

The Bitcoin network is expected to see a major increase in mining Difficulty due to faster block production rates.

user avatarTando Nkube

Goldman Sachs CEO Criticizes Crypto Leaders Over Market Structure Bill

chest

Goldman Sachs CEO David Solomon criticizes crypto leaders for disregarding the market structure bill, emphasizing the need for a rules-based framework in the industry.

user avatarKofi Adjeman

Concerns Over Legal Liabilities for Crypto Developers

chest

Recent prosecutions highlight the risks faced by developers in the crypto industry amid ongoing legislative debates.

user avatarNguyen Van Long

Laurore Ltd Surfaces as Major Player in Bitcoin ETF Market

chest

Laurore Ltd has emerged as a significant buyer of BlackRock's iShares Bitcoin Trust, acquiring 8,786,279 shares valued at approximately $337.3 million, raising questions about its identity and motivations.

user avatarSatoshi Nakamura

Citigroup Raises Nvidia Stock Price Target to $270

chest

Citigroup has raised its price target for Nvidia stock to $270, anticipating strong revenue growth and performance in the AI sector.

user avatarJesper Sørensen

Robert Kiyosaki Predicts Market Slide and Advocates for Accumulation

chest

Robert Kiyosaki anticipates a significant market downturn and encourages investors to buy assets like Bitcoin and Ethereum during market panic.

user avatarRajesh Kumar

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.