StarkWare CEO Eli Ben Sasson anticipates a groundbreaking upgrade to the Bitcoin network, dubbed OP_CAT, within the next year. Speaking at Devcon 2024 in Thailand, Ben Sasson highlighted that the introduction of OP_CAT would open the doors to advanced functionality on Bitcoin, including the potential for covenants, ZK-rollups, and fully integrated layer-2 networks.
What sets this development apart is Starknet’s ambition to become the first layer-2 network that can natively settle on both Bitcoin and Ethereum. Ben Sasson likened Bitcoin’s current capabilities to a scientific calculator: “OP_CAT adds one button to this scientific calculator, a button that can ‘concatenate’ or merge together strings of characters. This enables Bitcoin to inspect files, run programs, and operate on more complex data structures.” Essentially, OP_CAT simplifies and expands Bitcoin’s programmability, a concept that is easy to grasp despite its technical complexity.
The history of OP_CAT dates back to Bitcoin’s inception, when Satoshi Nakamoto originally included the operation code. However, due to security concerns, Nakamoto disabled OP_CAT in 2010, along with several other opcodes, to make Bitcoin more secure and streamlined. The idea resurfaced in October 2023, thanks to cryptographer Ethan Heilman and Botanix Labs’ Armin Sabouri, who proposed reintroducing OP_CAT through a soft fork.
Ben Sasson’s vision for OP_CAT is to realise Bitcoin’s potential as a viable payment network. Currently, high transaction fees prevent it from serving everyday use cases, such as buying a cup of coffee. With the rollout of OP_CAT and the deployment of layer-2 solutions like Starknet, transaction costs could become significantly lower, transforming Bitcoin into a more accessible medium for everyday transactions.
The implications of OP_CAT go beyond just lowering fees. Several experts believe that the activation of this opcode could allow Bitcoin to rival Ethereum in decentralised finance (DeFi) activity and transaction volume. Although numerous Bitcoin sidechains have emerged, many are criticised for not being genuine layer-2 solutions. They often rely on mechanisms like two-way pegs or bridging models, as seen in systems like Stacks’ proof-of-transfer. These approaches don’t offer the same level of security as solutions that natively settle on Bitcoin, a feature highly valued by the network’s conservative user base.
Lachlan Feeney, founder of Web3 development firm Labrys, remarked on the shortcomings of sidechains: “They don’t provide the necessary security or innovative features to justify Bitcoin OGs using them.” By settling natively, Starknet and OP_CAT aim to bring both innovation and the robust security Bitcoin enthusiasts demand.
If OP_CAT is successfully integrated, the update could represent a significant leap for Bitcoin, turning it into a DeFi powerhouse while making everyday transactions more affordable. As StarkWare continues its work, the next 12 months will be critical in determining whether Bitcoin can expand its role beyond a store of value to a full-fledged financial ecosystem.
