sCrypt and Starkware brings OP_CAT-Enabled Bitcoin: A Proof of Concept

SAN FRANCISCO, Dec. 4, 2024 /PRNewswire/ -- sCrypt, a full-stack Web3/blockchain development platform, and Starkware, a STARK-based solution for the blockchain industry, have built a demo bridge covenant on Bitcoin. This proof-of-concept implementation aims to be the foundation of a production-grade bridge for the Starknet Layer 2 (L2) network.

The bridge allows multiple deposit or withdrawal request transactions to be batched into a single root transaction and merged into the central bridge covenant, updating its state, which consists of a set of accounts organised in a Merkle tree.

The solution leveraged the sCrypt domain-specific language (DSL) to write the implementation, and the bridge consists of a recursive covenant Bitcoin script. Here, 'covenant' means that the locking script can enforce conditions on the spending transaction, and 'recursive' means that the rules above are sufficiently robust to enable persistent logic and state on-chain (a requirement for any on-chain smart contract).

Xiaohui Liu, Founder and CEO at sCrypt, said: "This is a huge breakthrough: the first-ever bridge that does not rely on trusting any intermediatory on Bitcoin, using OP_CAT. It opens the door to trustless bridging bitcoin to L2, opening new possibilities for Bitcoin utilization and adoption previously impossible. It is also a foundation for a ZK-STARK rollup on Bitcoin."

In this proof-of-concept implementation, sCrypt developed a bridge covenant on OP_CAT-enabled Bitcoin using the sCrypt-embedded DSL. The bridge leverages recursive covenants and Merkle trees to efficiently batch and process deposit and withdrawal requests while maintaining the integrity and security of user accounts by designing and implementing four smart contracts — DepositAggregator, WithdrawalAggregator, Bridge, and WithdrawalExpander. 

sCrypt provided a method to manage stateful interactions on Bitcoin, facilitating interoperability with Layer 2 networks like Starknet. sCrypt and Starkware's work establishes a technical foundation for building production-grade bridges, potentially enhancing scalability and functionality within the Bitcoin ecosystem.

About sCrypt:

sCrypt is a UTXO-blockchain development platform that offers a suite of tools and infrastructure to enhance and accelerate the development process of decentralised applications (dApps). It provides a rich set of APIs and software development kits (SDKs) that simplify blockchain interactions, such as querying blockchain data, sending transactions, issuing tokens, and developing smart contracts. It specialises in UTXO blockchains and supports multiple of them, such as Bitcoin and Bitcoin SV.