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

CAT-20 Token Standard: OP_CAT Opcode Guide

Introduction

The CAT-20 token standard introduces an innovative framework for managing fungible tokens directly on the Bitcoin blockchain. By leveraging the OP_CAT opcode, it enables efficient and streamlined token operations. This guide provides an in-depth exploration of how OP_CAT functions within the CAT-20 standard, along with practical examples for deploying, minting, and transferring tokens.

How OP_CAT Works

OP_CAT is integral to the CAT-20 protocol, enabling the concatenation of values on the Bitcoin stack, which is critical 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: The OP_CAT opcode concatenates the top two stack items and pushes the result back onto the stack, repeating iteratively until the full operation string is constructed.
  3. Final Result: The resulting 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 represents a breakthrough in token management on the Bitcoin blockchain. By integrating the OP_CAT opcode, it reduces dependence on off-chain systems, enhances Bitcoin's native scripting capabilities, and fosters a decentralized approach. This versatile protocol encourages active community involvement and developer-driven innovation.

Deploying a CAT-20 Token

To deploy a new CAT-20 token, initialize it with key parameters such as the token ticker, maximum supply, mint limit, and decimal precision. This process ensures efficient setup and compatibility with the CAT-20 standard.

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 leverages the innovative OP_CAT opcode to provide a robust, on-chain framework for managing tokens directly on the Bitcoin blockchain. By reducing dependence on off-chain solutions, this approach enhances both security and decentralization. As the community adopts and contributes to this open standard, it unlocks new possibilities for advancing token management and fostering innovative applications.

Developers are encouraged to experiment with, refine, and extend the foundational scripts provided in this guide to create tailored solutions that meet their unique requirements. The dynamic evolution of CAT-20 on the Bitcoin blockchain presents exciting opportunities for growth and innovation within the cryptocurrency ecosystem.