❔How It Work
A cash token system native to UTXO/Ordinals secured by 100% hashpower
Background
The Bitcoin Protocol created by Satoshi Nakamoto introduced a digital cash system that is open source and transparent by each and every node on the network tracking and authenticating the coin flow in the form of UTXOs (Unspent Transaction Outputs). In this system, UTXO = Cash/Coins on the network.
A UTXO can contain any number of Sats (Satoshis, the smallest denomination of Bitcoin = 0.00000001 Bitcoin) and can be combined with other UTXOs to form a bigger UTXO or be divided into smaller UTXOs with fewer Sats down to a single Sat.
The Ordinals Protocol by Casey Rodarmor introduced a new way of writing data onto a UTXO-based network.
By inscribing the data onto a single Sat contained in any UTXO, it creates an Inscription (the data package) and an Ordinal (the inscribed Sat).
The inscription will be included in the block space and stored on-chain in every node on the network, and be given an ID and a serial number by the Ordinals Protocol.
The Ordinal itself becomes a transferrable/tradable item, which represents the inscription that is timestamped and packaged into an existing block on the chain.
This new standard has been used to store images/texts/files and created a wide variety of NFTs (Non-Fungible Tokens) that can be traded on multiple UTXO-based networks, including BTC/BCH/BSV/LTC/DOGE...
Innovations like:
and
has brought a new wave of JSON-based protocols which utilize the inscriptions like an immutable database that enabled Layer 1 native domain names and token protocols to emerge on all UTXO-based networks.
Design Philosophy
The design of the ORC-CASH Protocol is based on a few fundamental ideas:
A token protocol on UTXO-based networks like Bitcoin should be a Cash System just like the native coins
Tokens deployed on such networks should be maximumly protected by all the Hash Powers on each network
A complete transaction record should be kept fully on-chain to be Immutable and Transparent for any indexer with the correct rulesets to interpret and conclude exactly the same result
A token protocol should be Project-Friendly and allows Multi-Purpose deployments
A token protocol should have a Stable foundation but also be Flexible and Expandable
A token protocol should be fully OpenSource and Community-Driven
The 'O' in ORC-CASH stands for Ordinals & Openness.
'CASH' as it suggests, introduces a cash system that utilizes the Ordinals/Inscriptions as the tokens themselves which can be transferred freely and securely through the network that is authenticated by each and every node on the network.
Once a token was deployed, the 'Deployer' inscription/ordinal represents the ownership of the token project itself and allows the holder of the Deployer future upgrades to the token specs, this ownership can be traded/transferred by changing ownership of the Deployer ordinal. The same ticker name can be deployed multiple times, each time with a different Token ID.
When a token balance is minted or transferred, the inscriptions/ordinals (Mint/Send Inscriptions) themselves become Cash Bills with a serial number and can be traded/transferred freely and securely through the network, the token balance is always attached to and follows the UTXO that contains the inscriptions/ordinals unless they have to be Split into smaller denominations.
Splitting the cash bills that carry the token balance works with a designated burn/blackhole wallet address (Burn Wallet) on each network, the cash bills to be split need to be sent to the designated Burn Wallet address on each network that functions like a universal ATM (Automated Teller Machine). Sending any valid cash bills to the Burn Wallet will create a Token Credit to the sender's wallet address, which enables the wallet holder to create additional valid cash bills in smaller denominations to their own wallet, by inscribing Send Inscriptions with smaller amounts until the Token Credit runs out.
The Token Credit system is an important addition to the cash system:
It floats on top of wallet addresses, and can only be moved by inscribing additional inscriptions/ordinals (Send/Sell/Airdrop...).
It adds more flexibility for the token holders in how they manage their token balances
It enables the introduction of additional features that also cost Token Credits, like Sell and Airdrop which can move them in more interesting ways but still have immutable on-chain records
The combination of the Cash System and the Token Credit System gives the ORC-CASH Protocol the security and simplicity of the UTXO cash function in daily usage, while also providing more functionalities to potential token projects that want to adopt and utilize the token standard.
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