A surge of support has emerged recently for the reintroduction of Bitcoin’s (BTC) Operation Concatenate (OP_CAT), a feature created by Satoshi Nakamoto in the original Bitcoin script allowing users to merge two data sets into a single transaction script. However, concerns over security risks due to large stack elements led Nakamoto to disable this code back in 2010.
The revival of OP_CAT has the potential to enable asset tokenization, building on the success of Ordinals. This proposed opcode addition would make it easier to manipulate asset metadata and advanced data structures within transaction scripts. Yet, implementing this too quickly could jeopardize Bitcoin’s status as the most secure blockchain.
The Rise of OP_CAT and Ordinals Renaissance (and resistance)
To comprehend why Ordinals and OP_CAT are gaining traction, one must explore Bitcoin’s history with tokenization and non-fungible tokens (NFTs). Before Ethereum (ETH) and CryptoKitties took the spotlight, NFTs made their debut on Bitcoin through metaprotocols like Colored Coins. These initiatives, such as Colored Coins proposed by Yoni Assia in 2012 and Counterparty’s creation of “Rare Pepe Nakamoto” in 2016, were hindered by Bitcoin’s limitations of slow processing, poor scalability, and high transaction costs.
Fast forward over a decade later, enthusiasts are eager to reintroduce NFTs to Bitcoin. Supporters of Ordinals are utilizing the OP_RETURN output to embed arbitrary data into Bitcoin transactions, circumventing the 80-byte limit by spreading data across multiple outputs. While some commend this technical workaround, others view it as spam on the secure Bitcoin network.
For instance, Ocean Mining is actively working to remove Ordinals data, considering it a form of a Denial of Service (DoS) attack. In a tweet from December 2023, Ocean Mining CTO Luke Dash highlighted the issue of data obfuscation as a bug in Bitcoin Knots v25.1. Responding to the notion that Ordinals were permitted on Bitcoin, Dash emphasized that it has always been an attack on the system.
It is worth noting that Ocean Mining, formerly known as Eligius, has mined close to 350,000 Bitcoin across more than 11,000 blocks. Several node operators have aligned with Ocean’s stance and are filtering out “spam” generated by Ordinals inscriptions.
OP_CAT versus Bitcoin purists
The future of Bitcoin NFTs in 2024 appears uncertain. Ordinals are not only facing scrutiny from node operators filtering out their inscriptions but also grappling with network congestion and high fees due to Bitcoin’s low transactions per second (TPS). With numerous challenges on the horizon, how will Bitcoin meet the demand for secure and scalable tokenization/NFTs? Will Ordinals fade into obscurity like their predecessors, Colored Coins?
The focus now shifts to integrating OP_CAT into the Bitcoin protocol to address base layer limitations. StarkWare has announced a $1 million fund dedicated to researching OP_CAT and its potential to drive Bitcoin adoption. The community is eager about potential use cases like secure document signing and vaults.
However, the same security vulnerabilities that led to OP_CAT’s disablement in 2010 are now reasons why developers are cautious about implementing OP_CAT’s BIP 420. This debate has sparked discussions within the community about the legitimacy and future of Ordinals. Insider communities can sometimes diverge from mainstream signals for demand, as seen with this innovation.
Introducing OP_CAT could streamline asset tokenization on Bitcoin, but it necessitates a soft fork and poses risks of potential hacks with any backward-compatible update to the Bitcoin protocol. Rushed adoption without additional opcode integration may limit its functionality.
Security Remains Paramount
The rush to adopt OP_CAT poses an existential threat to Bitcoin’s history as a secure protocol. The clamor for OP “CATs” and #BIP420 in social bios underscores the demand for tokenization and NFTs. Instead of rushing to implement changes that compromise Bitcoin’s security and functionality, solutions should be pursued through layer-2 technologies.
This isn’t the first time pressure for rapid protocol adoption has surfaced. Bitcoin must prioritize security above all else to maintain its integrity. It is up to the community, not just the loudest voices, to safeguard it. The future of cryptocurrency and blockchain technology hinges on Bitcoin’s untarnished security reputation. Why rush to fix something that isn’t fundamentally broken?
Afnan Rahman, co-founder and CEO of AYCE & Co., previously co-founded OpenNode and helped develop the Bitcoin wallet Zap (Strike). He is a UC Santa Barbara graduate.
This article serves as general information and should not be construed as legal or investment advice. The author’s views expressed here are personal and do not necessarily reflect those of Cointelegraph.