Overview of BTC Ecosystem Programmability Expansion Plan

The Bitcoin ecosystem is rapidly evolving on the technical level, especially in terms of programmability expansion solutions. This article introduces several highly regarded solutions: Fractal, AVM, OP_NET, BRC100, and programmable runes.

Fractal

Fractal is a scalable framework virtualized based on the Bitcoin Core client software. It improves the overall network performance by recursively creating a tree structure and is fully compatible with Bitcoin and its infrastructure. Fractal activates the op_cat operator, allowing for more logic to be implemented.

Fractal will launch its mainnet in September 2024. Its tokenomics includes: 50% generated from mining, 15% for the ecosystem, 5% for early investor presale, 20% for advisors and core contributors, and 10% as community subsidies.

In terms of architectural design, Fractal packages the Bitcoin core client into a deployable blockchain software package (BCSP), running multiple BCSP instances on the Bitcoin mainnet through recursive anchoring. It makes some modifications to the Bitcoin core, such as shortening block confirmation times and increasing block sizes.

Fractal activates the op_cat operator, providing exploration space for BTC scaling solutions. Different instance chains can communicate, enabling seamless asset transfers. Bitcoin and other assets can enter the Fractal network through decentralized bridging.

To enhance security, Fractal introduces joint mining, with one out of every three blocks generated through merged mining with BTC miners. The newly created instance chain will have a protection period during its launch phase.

AVM

AVM(Atomicals Virtual Machine) is the BTC smart contract implementation of the Atomicals Protocol. It creates a virtual machine that simulates BTC scripts, opening up multiple raw BTC opcodes, allowing developers to implement smart contracts through combinations of Bitcoin scripts.

AVM achieves Turing completeness through a dual-stack PDA. It runs in a sandbox that includes an indexer, instruction parser, and global state, facilitating the processing of smart contracts and state synchronization verification.

The AVM instruction set includes the complete BTC opcodes, allowing developers to program using the unused features of BTC. It is suitable for various metadata protocols and only requires minor adjustments to the indexer.

OP_NET

OP_NET aims to introduce Ethereum-like smart contract functionality to the Bitcoin network, but in a way that is more in line with Bitcoin's characteristics. It provides a set of development libraries written in AssemblyScript, simplifying the creation and operation of Bitcoin-related technologies.

OP_NET retains the block consensus and data availability of Bitcoin, executing complex computations on Bitcoin blocks through the virtual machine (OP_VM). It supports multiple programming languages and utilizes Tapscript to enable advanced smart contract functionalities.

When interacting on the OP_NET network, users are required to pay an additional fee. To expand the use of BTC in DeFi, OP_NET provides a Proof of Authority system that allows BTC to be wrapped as WBTC.

The OP_NET ecosystem covers multiple fields such as decentralized trading, lending, and market making, including projects like Motoswap, Stash, and Ordinal Novus.

BRC100

BRC-100 is a decentralized computing protocol built on the Ordinals theory. It achieves complex DeFi operations by adding new operations such as "burn" and "mint" to brc20.

BRC-100 provides mint2/mint3 and burn2/burn3 operations, allowing tokens to be converted between the UTXO model and state machine model. It can be functionally extended through extension protocols, and all extension protocols are compatible with each other.

The BRC-100 ecosystem includes inBRC(, the first BRC-100 market and indexer ), 100Swap(, an AMM DEX) based on the BRC-102 protocol, and 100Layer(, a liquidity protocol on Bitcoin L1 ).

Programmability Runes ( Protorunes )

Programmable Runes are an extension layer of Runes that allow the creation of programmable assets with Runes. The Proto-Runes Protocol provides a framework for programmable Runes, supporting the management and transfer of Rune assets across sub-protocols.

The key mechanism of Proto-Runes is Protoburn, which allows the destruction of runes and their conversion into a form specific to the sub-protocol. Protomessage is used to execute operational instructions within the sub-protocol.

In the Proto-Runes protocol runtime, the indexer first processes the Runestone features in the rune protocol, and then processes the sub-protocol messages in order. To avoid complexity, recursive execution of prototype messages is prohibited.

Currently, the first Protorune (QUORUM•GENESIS•PROTORUNE) has completed Protoburn, demonstrating the functional model of on-chain governance implemented on Bitcoin L1.