What Do Bitcoin Stamps Refer To?

You are currently viewing What Do Bitcoin Stamps Refer To?

What Do Bitcoin Stamps Refer To?

Main Points:

  • Bitcoin STAMPS protocol integrates images into the Bitcoin blockchain, ensuring the security and permanence of digital artwork.
  • Bitcoin Stamps provide a more secure data storage method and greater adaptability compared to Bitcoin Ordinals.
  • This piece delves into the concept of Bitcoin Stamps, their functionality, and their distinctions from Bitcoin Ordinals.
As Bitcoin continues to develop, it has expanded its utility to encompass diverse applications beyond its original scope, such as the integration of supplementary data within transactions. The Bitcoin STAMPS protocol represents an advancement in data embedding, building upon the foundation laid by earlier technologies like the Ordinals protocol. This article endeavors to elucidate the concept of Bitcoin Stamps, elucidate their operational mechanics, and highlight their points of departure from Bitcoin Ordinals.

What Are Bitcoin Stamps?
Bitcoin Stamps denote a method employed to incorporate digital art into the Bitcoin blockchain. They encode data within unspent transaction outputs (UTXOs), thereby ensuring its immutable integration into the blockchain.

How Do Bitcoin Stamps Works?
The process of creating a Bitcoin Stamp involves converting a digital art piece into a base64 string. This string is appended to a Bitcoin transaction, distinguished by a “STAMP:” prefix. Subsequently, this data is dispersed across multiple outputs through multi-signature transactions, guaranteeing the enduring recording of digital artwork on the Bitcoin blockchain.

Each Bitcoin Stamp receives a unique identifier derived from the time of the transaction, facilitating orderly categorization. To attain official recognition, a Stamp must adhere to specified criteria, including being part of the inaugural transaction featuring a valid “STAMP:base64” string.

Bitcoin Stamps Protocols
Bitcoin Stamps utilize two primary protocols: SRC-20 and SRC-721.

1. SRC-20: The SRC-20 token standard is constructed on the open Counterparty protocol, incorporating arbitrary data within spendable data transactions. This stands in contrast to Ordinals, which position data within the witness section.

2. SRC-721: The SRC-721 standard streamlines the creation of detailed NFTs, leveraging the Bitcoin STAMPS protocol to store images in layers. This methodology reduces file size by employing techniques like indexed color palettes for each layer. These layers can then be combined into a singular NFT, facilitating the generation of high-quality images without incurring excessive costs.

Bitcoin Stamps vs. Bitcoin Ordinals
Bitcoin Stamps and Bitcoin Ordinals serve as inscription technologies on the Bitcoin blockchain, both enabling users to append additional data to the network. However, they differ in their approaches.

Data Pruning:
Bitcoin Ordinals store information as witness data within a distinct section of transaction blocks, subject to modification through data pruning by blockchain nodes. Conversely, the Bitcoin STAMPS protocol embeds image data within unspent transaction outputs (UTXOs), rendering digital artwork minted with Bitcoin Stamps immutable and resistant to pruning.

Data Size and Cost:
Bitcoin Stamps afford flexible data storage, accommodating images with resolutions of 24×24 pixels or higher. However, opting for larger images may escalate the data size, potentially resulting in increased transaction fees. In contrast, Bitcoin Ordinals impose limitations on embedded data size, aligned with the Bitcoin block size. This constraint on image resolution maintains consistent transaction fees while restricting flexibility.

Signature Type:
Bitcoin Stamps are inherently structured with a multi-signature framework, elevating data security. In contrast, Bitcoin Ordinals operate on a single-signature basis.

Closing Remarks:
Bitcoin Stamps serve as a means to embed digital artwork into the Bitcoin blockchain, safeguarding its integrity and immutability. Unlike Bitcoin Ordinals, constrained by block size and single-signature transactions, Bitcoin Stamps offer increased flexibility in data size and security through a multi-signature framework.