Summary:
sCrypt wins the 2024 Bitcoin Olympics Hackathon showcasing cross-chain transactions.
Demonstrated a user using Litecoin to purchase BTC Ordinal tokens.
Simplified Payment Verification (SPV) was utilized for transaction validation.
OP_CAT opcode enables advanced functionalities like covenants and Merkle Proof validation.
The project emphasizes trustless exchanges without intermediaries.
sCrypt's Historic Win at the Bitcoin Olympics
sCrypt, a pioneering blockchain scripting and contract firm, made waves at the 2024 Bitcoin Olympics Hackathon by showcasing a remarkable transaction that enables payments across different blockchains. The dynamic duo of software engineers, Mihael Šinkec and Yusuf Idi Maina, leveraged the SPV (Simplified Payment Verification) and the Bitcoin opcode OP_CAT on the BTC Signet, demonstrating how a user can utilize Litecoin to acquire BTC Ordinal tokens.
The Innovative Approach
sCrypt emphasized that their demonstration paves the way for DeFi applications, allowing for the direct exchange of various digital assets without the need for intermediaries like exchanges. This trustless method eliminates the necessity for coordination between the involved parties.
Šinkec explained that creating such a transaction using raw BTC ASM (assembly code) would have been overly complex, which is why they opted for sCrypt’s SDK. This toolkit allows developers to write in TypeScript, focusing more on the logic of contracts than on intricate code details. They successfully verified transaction preimages and conducted a straightforward function call within a BTC covenant.
The Technical Details
The process further utilized Simplified Payment Verification (SPV) on Litecoin, reconstructing the Merkle Root of a transaction using its data and Merkle Path, thereby validating it against the transaction’s Block Header. This method allows clients to confirm the Block Header's integrity without needing to download the entire blockchain.
In a detailed explanation on Medium, Šinkec noted the challenges associated with verifying a Litecoin transaction proof using BTC script, citing the differing Proof of Work (PoW) algorithms of the two blockchains. They implemented an oracle to validate Litecoin transactions, utilizing Lamport signatures verifiable within BTC script.
The Litecoin SPV proof facilitated the unlocking of a BTC Ordinal token secured in a BTC covenant, allowing for the seamless transfer of assets to the recipient’s BTC address. A covenant imposes constraints on how specific coins can be utilized in future transactions.
The Importance of OP_CAT
Šinkec stated that enabling OP_CAT on BTC opens up numerous possibilities, including advanced functionalities like covenants and Merkle Proof validation. They used these mechanisms to create an Ordinal sales listing as a covenant on BTC, which accepts Litecoin as a payment method, bypassing traditional exchanges.
OP_CAT is an opcode that was part of the original Bitcoin protocol, allowing for the concatenation of two items on the stack, thus enhancing the sophistication of transaction scripts. Although originally disabled due to concerns about network spam, it was re-enabled on the BSV blockchain in recent years, allowing for more innovative uses of blockchain technology.
Currently, sCrypt’s cross-chain transaction operates solely on the BTC Signet, a testnet for blockchain applications. However, its functionality on BSV indicates a potential for future cross-chain payment solutions.
Watch: sCrypt wants to bring hackathon initiative to more people
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