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CAT-20 Token Standard: OP_CAT Opcode Guide

Introduction

The CAT-20 token standard introduces a innovative framework for managing fungible tokens on the Bitcoin blockchain, leveraging the OP_CAT opcode for efficient and streamlined token operations. This provides an in-depth guide on how the OP_CAT opcode functions within the CAT-20 standards, and offers practical examples for deploying, minting, and transferring tokens.

How OP_CAT Works

OP_CAT plays a crucial role in the CAT-20 protocol, facilitating the concatenation of values on the Bitcoin stack, which is essential for various token operations:

  1. Stack Preparation: Components of a token operation, such as the protocol identifier, operation type, and ticker, are sequentially pushed onto the Bitcoin stack.
  2. Concatenation Process: Using OP_CAT, the script concatenates the top two stack items, pushing the result back onto the stack. This continues iteratively until the entire operation string is constructed.
  3. Final Result: The concatenated string represents the token operation—deployment, minting, or transfer—and is inscribed on the blockchain for execution.

Significance of CAT-20

The CAT-20 standard marks a significant advancement in token management on Bitcoin by integrating the OP_CAT opcode, which reduces reliance on off-chain systems and enhances Bitcoin's native scripting capabilities. It is a versatile protocol that encourages community participation and developer innovation.

Deploying a CAT-20 Token

To deploy a new CAT-20 token, initialize it with parameters like ticker, maximum supply, mint limit, and decimal precision.

Deployment Script

OP_FALSE OP_IF
    OP_PUSH "ord"          
    OP_PUSH 1              
    OP_PUSH "text/plain;charset=utf-8"  
    OP_PUSH 0              

    OP_PUSH "cat20:"
    OP_CAT

    OP_PUSH "deploy:"
    OP_CAT

    OP_PUSH "CAT="
    OP_CAT

    OP_PUSH "210000000,"
    OP_CAT

    OP_PUSH "lim=1,"
    OP_CAT

    OP_PUSH "dec=8"
    OP_CAT

OP_ENDIF

Concatenated String: "cat20:deploy:CAT=210000000,lim=1,dec=8"

This script, upon inscription, deploys a new CAT-20 token with specified parameters.

Minting CAT-20 Tokens

Minting involves creating new tokens according to the limits established during deployment.

Minting Script

OP_FALSE OP_IF
    OP_PUSH "ord"          
    OP_PUSH 1              
    OP_PUSH "text/plain;charset=utf-8"  
    OP_PUSH 0              

    OP_PUSH "cat20:"
    OP_CAT

    OP_PUSH "mint:"
    OP_CAT

    OP_PUSH "CAT="
    OP_CAT

    OP_PUSH "1"
    OP_CAT

OP_ENDIF

Concatenated String: "cat20:mint:CAT=1"

This script mints 1 CAT token, complying with the deployment limits.

Transferring CAT-20 Tokens

Transferring tokens moves a specific amount from one wallet to another.

Transfer Script

OP_FALSE OP_IF
    OP_PUSH "ord"          
    OP_PUSH 1              
    OP_PUSH "text/plain;charset=utf-8"  
    OP_PUSH 0              

    OP_PUSH "cat20:"
    OP_CAT

    OP_PUSH "transfer:"
    OP_CAT

    OP_PUSH "CAT="
    OP_CAT

    OP_PUSH "5"
    OP_CAT

OP_ENDIF

Concatenated String: "cat20:transfer:CAT=5"

This script transfers 5 CAT tokens from the sender to the receiver.

Advanced Example: Combined Operations

For complex scenarios, mint and transfer operations can be combined into a single script.

Combined Operations Script

OP_FALSE OP_IF
    OP_PUSH "ord"          
    OP_PUSH 1              
    OP_PUSH "text/plain;charset=utf-8"  
    OP_PUSH 0              

    OP_PUSH "cat20:"
    OP_CAT

    OP_PUSH "mint:"
    OP_CAT

    OP_PUSH "CAT="
    OP_CAT

    OP_PUSH "1"
    OP_CAT

    OP_PUSH "cat20:"
    OP_CAT

    OP_PUSH "transfer:"
    OP_CAT

    OP_PUSH "CAT="
    OP_CAT

    OP_PUSH "2"
    OP_CAT

OP_ENDIF

Concatenated String: "cat20:transfer:CAT=5"

Final Concatenated Strings:

  • Mint: "cat20:mint:CAT=1"
  • Transfer: "cat20:transfer:CAT=2"

Conclusion

The CAT-20 standard, through the innovative use of the OP_CAT opcode, offers a robust framework for managing tokens directly on the Bitcoin blockchain. This approach minimizes reliance on off-chain solutions, enhancing security, and decentralization. As the community engages with and builds upon this open standard, the potential for novel applications and improvements in token management will continue to expand.

Developers are encouraged to explore, test, and expand upon the basic scripts provided in this guide to tailor solutions to their specific needs. The evolving landscape of CAT-20 on the Bitcoin blockchain promises to deliver exciting opportunities for innovation and growth in the cryptocurrency ecosystem.

Contact info:

If you encounter any new technical issues or need development inquiries, please contact me.