• 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 Adoption Predicted to Thrive in Easing Cycles, Says Schwab

chest

Bitcoin adoption is expected to thrive during accommodative monetary policies, particularly by 2026.

user avatarAyman Ben Youssef

Charles Schwab to Expand Cryptocurrency Trading by 2026

chest

Charles Schwab plans to expand its cryptocurrency trading offerings, focusing on Bitcoin and Ethereum, by 2026.

user avatarTando Nkube

Cardano Midnight Climbs to 66th in Crypto Rankings

chest

Cardano Midnight has rapidly climbed to the 66th position in the crypto market rankings since its launch.

user avatarKofi Adjeman

Midnight NIGHT Achieves Milestone with eToro Listing

chest

Midnight NIGHT has achieved a milestone with its listing on eToro, expanding access to the Cardano Midnight ecosystem for investors and traders.

user avatarNguyen Van Long

Noble Blockchain Transitions to Standalone EVM Layer 1

chest

Noble announces its migration from the Cosmos ecosystem to become a standalone Ethereum Virtual Machine-compatible Layer 1 network, set to launch on March 18, 2025.

user avatarRajesh Kumar

Experts Warn of Job Displacement Due to AI Automation

chest

Experts warn of potential job displacement due to AI automation, highlighting the need for economic safeguarding and skill development.

user avatarJesper Sørensen

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.