Author: alicexbt 2023-03-30 18:12:46
Published on: 2023-03-30T18:12:46+00:00
Zac Greenwood and alicexbt had an email exchange discussing the use of new opcodes to facilitate parasitical use cases of blockchain and whether Bitcoin should add any functionality intended to support private businesses that rely on on-chain storage for their business model. Zac argued that such businesses must be made less feasible as they abuse the blockchain as a data store without compensating node operators who incur additional costs for supporting them. Alicexbt disagreed and shared how certain developers have been exploring multisig and taproot, and several investors are exploring funding projects related to Bitcoin. The discussion included several links and technical details about using new opcodes to create a fair, non-custodial, on-chain auction of ordinals. The proposed opcodes come close to making this possible, according to Anthony Towns via bitcoin-dev. He explained how the ordinal auction could work, which involves creating a utxo on chain that contains the ordinal in question, committing to the address of the current leading bidder, and can be spent in two ways. Towns proposed a script to implement this idea, assuming the availability of several opcodes.Recently, the bitcoin-dev mailing list discussed a new auction mechanism for Bitcoin ordinals. The auction uses the OP_FORWARD_LEAF_UPDATE and OP_VAULT opcodes from the TAPROOT proposal. The auction script contains several steps including checking that a new bid is higher than the previous bid plus a given increment and checking that the output of the previous bid spends back to the same script. The script is resistant to MEV (miner-extractable value) since users only pay fees if their bid succeeds. The auction mechanism is regarded as a limited approach, but it could be improved with further development. Scammers have previously attempted to use various auction models for Bitcoin NFTs. In conclusion, the proposed mechanism is a clever use of TAPROOT opcodes that could be useful in future auction models.
Updated on: 2023-06-16T15:38:45.131497+00:00