Stamps Protocol & LeapX: A Revolutionary Asset Migration Tool for Bitcoin’s Diverse Protocol Ecosystem
With the trend of new Bitcoin asset issuance protocols such as Ordinals, Runes, Stamps, Atomicals, and RGB , the variety of assets on the Bitcoin chain has increased, providing more opportunities for future applications. However, the development of infrastructure is the necessary condition for determining how far these protocols can go. LeapX is a new Bitcoin all-protocol asset migration tool recently launched by
@btcOpenStamp. Below, we will start with the Stamps protocol to understand this new tool, LeapX.
Introduction to BTC STAMPS
BTC STAMPS is a new protocol that achieves true “blockchain art” by permanently storing image data in the transaction outputs of the Bitcoin blockchain in base64 encoded form. This protocol encodes the binary content of an image into a base64 string and broadcasts it as part of the transaction description using the Counterparty protocol. Due to the string length, Counterparty defaults to using bare multi-sig, splitting the data into outputs to avoid using the limited and unable OP_RETURN, ensuring the data cannot be pruned from full nodes. Typically, 24x24 pixel, 8-bit colour depth PNG or GIF images are used, suitable for pixel art.
Compared to Bitcoin Ordinals, which uses witness data that can be pruned, the Bitcoin STAMPS protocol embeds digital artwork data into UTXOs to ensure the data cannot be pruned, thus maintaining data integrity. Bitcoin STAMPS also supports higher image resolutions and flexible file sizes, which may increase transaction costs. The protocol uses two standards, SRC-20 and SRC-721, providing different functionalities for data embedding and high-quality image creation. Bitcoin STAMPS offers a more flexible and secure way to embed digital art into the blockchain.
What is the SRC Protocol
SRC-20
The SRC-20 token standard is a new protocol on the Bitcoin blockchain for creating fungible assets. It uses Bitcoin Stamp technology to embed data into transactions. Like Ethereum’s ERC-20 and Bitcoin’s BRC-20, SRC-20 is a technical token specification. Originating from the BTC Stamps protocol, it competes with the Ordinal project. After a block height of 796,000,
#SRC20 transactions are directly encoded on Bitcoin, reducing size and costs. To ensure ownership authenticity, these transactions must be signed and broadcast by addresses holding the tokens.
SRC-721
SRC-721 is a Bitcoin blockchain standard for creating and managing NFTs. It uses the Bitcoin Stamps protocol to store image data, employing layered storage technology to break down images into multiple layers with indexed colour palettes, reducing file size. This method allows for detailed NFT artworks with lower storage costs and transaction fees. Multiple layers can be combined into a single NFT, producing high-quality images without high costs.
#SRC721 extends the SRC-20 standard and uses Bitcoin’s Counterparty protocol, specifically targeting NFT creation and management.
Unlike BRC-20 tokens, which use the Bitcoin Ordinal protocol to store data in transaction witness data, SRC-20 tokens store data in UTXOs, ensuring permanence and immutability. SRC-20 minting requires only one transaction, while BRC-20 requires two, making it more convenient during network congestion. Although SRC-20 allows flexible data storage, larger data sizes can increase fees. In contrast, BRC-20 limits data size to ensure standard costs.
New Protocol Tool LeapX
OpenStamp is a one-stop trading and minting platform offering tools like transaction accelerators and UTXO splitting. In March of this year, it completed a seed round of financing valued at $50 million, led by Animoca Ventures. OpenStamp also has its own Layer 2 network
@ContinentxL2, built on
#CKB (Nervos) technology.
LeapX is an all-protocol asset migration tool that supports rapidly converting assets on the Bitcoin mainnet to protocol assets like RGB and BTC L2, enabling seamless and trustless transitions between L1 and L2. OpenStamp believes that the ultimate fate of Layer 1 assets should not be limited to MEME but should become core assets like
#Bitcoin. LeapX aims to break down barriers between protocols, allowing all Layer 1 assets to more natively participate in Layer 2 benefits and applications, becoming true core assets.
Currently, LeapX supports the integration of Bitcoin assets into UTXO-supported Layer 2s, such as CKB and OpenStamp’s native Bitcoin Layer 2 project ContinentX, as well as the UTXO Stack chain. Additionally, LeapX supports the seamless linking of Bitcoin Layer 1 assets with high-performance chains like Solana, leveraging its high-traffic and thriving ecosystem to provide more liquidity for Bitcoin assets.
Future Prospects
The launch of LeapX by OpenStamp provides a trading platform for assets from different protocols on Bitcoin’s Layer 1, allowing them to share resources and equally access the richer ecosystem applications of Layer 2. This eliminates user and liquidity fragmentation across protocols, integrating users and liquidity from different protocols, thereby significantly enhancing the efficiency of Bitcoin ecosystem development. This brings more resources and opportunities at both the asset protocol and overall ecosystem levels.
Currently, LeapX is in the experimental testing phase. There is hope for increased liquidity and protocol integration in the future, consolidating Bitcoin’s resources to make the Bitcoin ecosystem more prosperous.