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OP_NET and Arch: Similarities and Differences of New Bitcoin Smart Contracts Solutions and Their Prospects
New Bitcoin Smart Contracts Solution: Similarities and Differences between OP_NET and Arch
Recently, the two Bitcoin mainnet smart contract implementation solutions, OP_NET and Arch, have sparked widespread discussion. Although the name OP_NET is similar to OP_CAT, the nature of the two is completely different.
OP_CAT is an opcode in Bitcoin used for string concatenation. Its revival requires a soft fork, and relevant proposals are still underway. Although it has already been enabled on BCH and BSV, specific use cases remain somewhat abstract. The revival of OP_CAT may be the first step in the development of Bitcoin smart contracts, and more opcodes may be unlocked in the future.
In contrast, OP_NET belongs to the "protocol" category similar to runes, BRC-20, and ARC-20. Its technical framework includes the Bitcoin mainnet as the "action initiation layer" and "final confirmation layer", as well as the "execution layer" composed of OP_VM and OP_NET nodes.
The workflow of OP_NET is as follows: Users initiate transactions on the Bitcoin mainnet, and the transaction data contains the "BSI" identifier. After the transaction is confirmed, OP_VM executes contract operations and updates the status, which is confirmed by OP_NET nodes. The final result is provided to Bitcoin applications, and the operational results of the applications will also be submitted to the mainnet.
The transaction fees for OP_NET include Bitcoin network fees and OP_NET transaction fees. The latter consists of execution fees and priority fees, both paid in Bitcoin. Any amount exceeding 0.0025 Bitcoin will be "burned", and the remaining amount will serve as rewards for node operators.
Arch is positioned as "Bitcoin Layer 1.5", which is a layer of smart contracts built on the Bitcoin mainnet. It has raised $7 million in seed funding and will issue its own token as the Gas fee and staking token for PoS network validators.
The workflow of Arch is as follows: Users initiate transactions from the Bitcoin mainnet, Arch nodes process and validate the transactions, and the leader node is responsible for creating the Arch network block and submitting the finally confirmed transactions back to the mainnet. Arch uses the "FROST + ROAST" signature scheme, which ensures network stability as long as 51% of the network members cooperate honestly.
Although Arch has its own token as Gas fees, users can still pay with Bitcoin, and the backend will handle the fee conversion without the need for an additional wallet.
In general, OP_NET and Arch have similarities in technical implementation, both using the Bitcoin mainnet as the "initiating end" and "confirmation layer", while serving as the "execution layer". However, their positioning is different; OP_NET is more like a "protocol", while Arch is "Bitcoin Layer 1.5".
Although the block time of the Bitcoin mainnet may limit the application efficiency of these development schemes, their exploration still brings new possibilities for the development of the Bitcoin ecosystem. In the future, Arch plans to conduct a Token Generation Event (TGE) in the first quarter of next year, which may launch related testing activities or applications based on Arch. The current development of OP_NET may be influenced by the overall enthusiasm of the ecosystem.