Bitcoin-Backed Wrapped Assets

Bitcoin's locking script (also known as scriptPubKey):

A Bitcoin locking script is a piece of code written in Bitcoin's Script language that sets the conditions required to spend Bitcoin or, in our case, move an Ordinal inscription. It's like creating specific rules that must be met to access the locked asset.

Key Components:

Script Conditions

• Defines who can spend/move the Bitcoin/inscription

• Specifies what conditions need to be met

• Can include multiple requirements (multi-sig, timelock, etc.)

Common Types:

• P2PKH (Pay to Public Key Hash)

OP_DUP 
OP_HASH160 
<Public Key Hash> 
OP_EQUALVERIFY 
OP_CHECKSIG

• P2SH (Pay to Script Hash)

# P2SH (Pay to Script Hash) Example

# Redeem Script (this gets hashed)
# This is a 2-of-3 multisig script
OP_2                    # Require 2 signatures
<pubKey1>              # First public key
<pubKey2>              # Second public key  
<pubKey3>              # Third public key
OP_3                   # Total of 3 keys
OP_CHECKMULTISIG       # Check multiple signatures

# Actual Locking Script (P2SH)
OP_HASH160             # Hash the redeem script
<redeemScriptHash>     # Push hash of redeem script
OP_EQUAL              # Verify script hash matches

# Unlocking Script (scriptSig)
<signature1>          # First signature
<signature2>          # Second signature
<redeemScript>        # Full redeem script

• P2TR (Pay to Taproot)

# P2TR (Pay to Taproot) Example

# Key Path Spending
# The simplest, most efficient path
<internalKey>                     # Internal public key
OP_CHECKSIG                       # Verify signature

# Script Path (Alternative spending conditions)
# Merkle tree of possible script paths
# Script 1: Timelock with multisig
<timelock>
OP_CHECKLOCKTIMEVERIFY
OP_DROP
OP_2                             # Require 2 signatures
<pubKey1>
<pubKey2>
<pubKey3>
OP_3
OP_CHECKMULTISIG

# Script 2: Hash preimage check
OP_SHA256
<expectedHash>
OP_EQUALVERIFY
OP_CHECKSIG

# Taproot Output
# Combines key path and script paths into single tweaked key
<tweakedPubKey>                  # Output key = internal_key + merkle_root
OP_CHECKSIG                      # Verify signature

# Unlock via Key Path
<signature>                      # Schnorr signature
<pubkey>                        # Tweaked public key

# Unlock via Script Path
<signature>                     # Signature for script
<scriptPath>                    # Reveal script being used
<controlBlock>                  # Merkle proof + leaf version

• Custom scripts for specific requirements

This locking mechanism ensures that while NFTs are being traded on Layer 2, the original Bitcoin asset remains securely locked and can only be accessed through proper protocol verification.

---

Bitcoin-Backed Wrapped Assets

use Bitcoin's locking script for secure bridging. Here's how it actually works:

The Original Asset (on Bitcoin) Your NFT (Ordinal inscription) on Bitcoin gets locked in a secure locking script on the Bitcoin network. This script acts as a smart contract on Bitcoin, ensuring your asset can't be moved without proper verification.

Wrapped Version (on Layer 2)

1. When your Ordinal is locked, our protocol creates an equivalent wrapped version on Layer 2

2. Relayers detect and verify the locking script

3. Oracles confirm the lock state on Bitcoin

4. A corresponding wrapped NFT is minted on Layer 2

Wrapped asset progress structure

---

Trading and Security

• Trade the Wrapped version freely on Layer 2

• Original Ordinal remains securely locked by Bitcoin's script

• All movements are verified by network validators

• Unlock original by burning wrapped and verifying burn proof

---

Important Notice:

Wrapped assets on Bitcoin Layer 2 are synthetic versions of original Bitcoin NFTs. While we implement security measures, users must be aware of the risks associated with smart contracts, bridge protocols, and network-specific challenges. By using wrapped assets, you acknowledge the following:

1. Your original NFT will remain locked on Bitcoin’s network while the wrapped version exists.

2. Trading wrapped assets depends on the stability of the Layer 2 network.

3. Bridge protocol security impacts cross-chain asset movement.

4. Recovery processes may be delayed in the event of technical issues.

5. Market liquidity for wrapped assets may vary.