StarkWare, the pioneering team behind zero-knowledge-based rollups and instrumental in scaling Ethereum through its Layer 2 Starknet, has unveiled an ambitious plan to scale Bitcoin. “We want to seize the moment,” StarkWare’s Co-founder and CEO Eli Ben-Sasson told The Defiant. “In the time since the Taproot upgrade, research has helped us to appreciate that it has unlocked pathways to new possibilities over BTC.”
The Potential of Taproot
Taproot, implemented in November 2021, is the latest and largest of Bitcoin’s upgrades. It aims to enhance smart contracts and privacy for Layer 1 transactions. However, according to a dashboard by Bitcoin core contributor Luke Dash Jr., only about 12% of Bitcoin nodes are running an upgraded Taproot version of the software.
Despite this, Ben-Sasson is determined to capitalize on this improvement. The team has allocated a $1 million fund for research and development to support StarkWare’s Bitcoin scaling plan. Funds will be directed towards researchers focusing on OP_CAT, a script initially proposed by Bitcoin’s creator, Satoshi Nakamoto.
The Controversial OP_CAT Revival
OP_CAT, short for “Operation Concatenate,” allows the combination of two pieces of data into a single piece during a Bitcoin transaction. This opcode, reintroduced in discussions, can enable secure vaults for reversible transactions, automated recurring payments, and time-locked transfers for inheritance schemes.
However, Satoshi removed OP_CAT in 2011, citing concerns about potential security issues, such as denial-of-service (DoS) attacks. Ben-Sasson believes that the probability of OP_CAT being adopted is high, positioning StarkWare’s plan in an exciting light. “It will retain all Bitcoin values unchanged,” he explained, “while providing a bare-bones framework that is just enough to bring STARK scaling to Bitcoin.”
Mixed Reactions from the Community
Reactivating OP_CAT has sparked a mix of support and criticism. Udi Wertheimer, a well-known Bitcoin personality, supports the script, claiming it allows scaling without altering Bitcoin’s core fundamentals. However, others like Robin Linus, creator of BitVM, argue that OP_CAT introduces new vulnerabilities.
Matt Corrallo, a Bitcoin core contributor, noted potential issues with MEV (Maximal Extractable Value) extraction if OP_CAT is implemented. Corrallo’s concerns, although not explicitly against OP_CAT, reflect apprehensions shared by other Bitcoiners. Additionally, the pseudonymous technical editor for Bitcoin Magazine, Shinobi, expressed caution about implementing unknown changes to Bitcoin.
StarkWare’s Vision for Bitcoin
Despite the controversy, Ben-Sasson’s team remains committed to their plan. StarkWare, known for its success with StarkNet on Ethereum, aims to replicate this success on Bitcoin using zero-knowledge rollups. These rollups verify transactions with minimal information, reducing the data load on the network and potentially solving Bitcoin’s slow transaction throughput and high fees.
Zero-knowledge rollups have been hailed as a solution to blockchain scaling issues. They maintain security by inheriting protections from Layer 1 while enabling faster, more efficient transactions off-chain. Ben-Sasson believes that these could significantly benefit Bitcoin, even if OP_CAT remains a contentious choice.
As OP_CAT continues to be tested on Bitcoin’s testnet, launched in early April 2024, the challenge will be to gain community support for its revival. Whether the community will accept this ten-line code script remains to be seen.
