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Author: Four Pillars Source: @wowitsjun and @xparadigms Translation: Shan Oppa, Bitchain Vision
Many people believe that Bitcoin remains static due to its unchanging architecture.There is no clear roadmap that goes beyond its halving plan, and predicting the future of Bitcoin is challenging.However, Bitcoin can be upgraded through community consensus.If most full nodes agree, Bitcoin can be upgraded through soft forks and introduce new features.
This article examines the major past upgrades of Bitcoin and explores OP_CAT, the next important upgrade expected.Let’s dig into the importance of these upgrades and explain why they represent important milestones in Bitcoin’s history.
1. Background – Main upgrades: SegWit, Taproot, and OP_CAT
1.1 Segregation Witness (SegWit) (2017) – Expand Bitcoin Block Space and Birth Bitcoin Cash
The Quarantine Witness upgrade was implemented in August 2017 and is the first major attempt by Bitcoin to solve the scalability problem.Before the quarantine witness, the Bitcoin block stores a combination of signature and transaction data.This approach is inefficient because the space allocated to the signature is disproportionately large compared to the actual size of the signature data.
Two opposite solutions emerged: one advocates increasing the block size of Bitcoin, while the other seeks to maintain existing block size but improve efficiency.Isolation Witness, the latter solution, separates signature data from transaction data through core logic upgrades.It creates a separate storage space called “Witness Area” that allows more transaction data to be recorded in each Bitcoin block.
Due to the quarantine witness upgrade, the amount of transaction data that can be stored in each block is quadrupled.This improvement results in faster transaction processing and lower fees.
1.2 Taproot (2021) – Improve Bitcoin’s efficiency and privacy
Taproot was implemented in November 2021 and is another important upgrade for Bitcoin after the quarantine witness.This upgrade enhances Bitcoin’s efficiency and privacy by introducing Schnorr signatures and Merkle Abstract Syntax Tree (MAST).
Before Taproot, Bitcoin’s signature method relied on the elliptic curve digital signature algorithm (ECDSA), and each transaction required one signature.This approach results in an increase in the signed data size and makes it easier to track transactions when multiple wallets send funds to a single address.
Schnorr signatures resolve ECDSA restrictions by combining multiple signatures into a unique signature.This greatly reduces the proportion of signature size in the block.In addition, even transactions with multiple functions are displayed as single transactions, thereby enhancing user privacy.
In addition, the Merkle Abstract Syntax Tree (MAST) allows Taproot to handle complex Bitcoin transactions more efficiently.It does this by introducing logic to extract and validate the hash of the required script.
Unlike the Quarantine Witness escalation, Taproot has received almost consistent support in the Bitcoin community.
1.3 OP_CAT (also known as BIP-420) – The basis for the growth of Bitcoin ecosystem
OP_CAT is widely regarded as the next upgrade for Bitcoin.It is a simple 13-line code that Satoshi Nakamoto deactivated in 2010 to protect Bitcoin from DDoS attacks.OP_CAT allows multiple elements to be connected in the Bitcoin system.Today, people are pushing for the reintroduction of OP_CAT and taking steps to prevent DDoS attacks, such as limiting replication size.This reintroduction, known as the BIP-420, could be an important milestone in the Bitcoin ecosystem, enabling a variety of developments, including layer 2 solutions.
As emphasized in “The Real Way to Extend Bitcoin with L2”, Bitcoin’s scripts are stateless.However, combining OP_CAT with Schnorr signatures allows Bitcoin to enforce specific actions and verify state changes.This is crucial because blockchains essentially store state.If the status changes can be confirmed inside Bitcoin, the door is opened for internal smart contracts.Additionally, OP_CAT can enable STARK verification to facilitate Bitcoin deposits and withdrawals with zero-knowledge proof.Starkware has demonstrated zero-knowledge proofs on Bitcoin Signet.Many expect soft forks to introduce OP_CAT in the near future, which could revolutionize the Bitcoin ecosystem and even the entire cryptocurrency space.
2. Summary
2.1 @wowitsjun_ From Hashed
The next direction of Bitcoin’s upgrade will be an upgrade that directly helps expand the Bitcoin ecosystem rather than improve its efficiency.Unlocking Bitcoin’s potential is much more than the emergence of another ecosystem.Expanding the Bitcoin ecosystem will pave the way for integrating the decentralized blockchain space into one, leveraging synergies with the Ethereum ecosystem.As the clues of Bitcoin’s scalability are uncovered one by one through future upgrades, the Bitcoin ecosystem will inevitably expand.Here, we need to think about what the financial system will look like in the future.
2.2 @xparadigms from Four Pillars – “The Next Stage of Digital Gold”
Bitcoin is known for its resistance to change, and past disagreements have led to forks such as Bitcoin Cash and Bitcoin SV.Despite the controversy, the proposed OP_CAT addition is expected to have a greater impact than any previous upgrades.
Introducing OP_CAT into Bitcoin can enable secure scaling solutions and foster a strong Bitcoin ecosystem.It is able to connect multiple elements, allowing proof verification, including zkRollup deployment.For example, Starkware recently tested a STARK-based zkRollup on the Test Network.
The value of gold stems from its scarcity and recognized practicality.Similarly, Bitcoin, as the now established “digital gold”, is entering a new stage of exploring its applications.With the upgrade of OP_CAT, this digital gold can become the cornerstone of building digital infrastructure and finance.
