OP_CAT Upgrade Could Elevate Bitcoin Beyond a Mere Store of Value, Adding New Features
The mechanism of the code is a little complex. It kind of allows transactions to prioritise certain data points when executing – making it somewhat of a proxy for smart contracts
OP_CAT is a Bitcoin Improvement Proposal (official title pending) that could have major ramifications for the cryptocurrency's roadmap. As we know, BTC veered off course around 2017, shifting from its original intentions as a medium of exchange into a store of value more like digital gold.
Although the financial world has embraced this transition, many Bitcoin lovers are still quite resistant to change.
OP_CAT would be the most radical change the network would’ve seen in its fifteen-year existence. The proposal is based on a code written by Satoshi in 2010 that was removed from the Bitcoin stack before it went live.
The mechanism of the code is a little complex. It kind of allows transactions to prioritise certain data points when executing – making it somewhat of a proxy for smart contracts.
This could lead to several significant DeFi use cases, including anti-double spending measures on Bitcoin L2 scaling protocols, implementation of automated market makers (AMM) and escrows based on hash rate.
The vote for OP_CAT is still a little ways away, and there’s a very good chance that the proposal is rejected. However, if passed, OP_CAT could open the floodgates for a range of new BTC use cases, and change its trajectory forever.
