Oucalink Team: BRC-20 transactions cannot be applied to Bitcoin's UTXO label model, which may mislead market judgments.
2023-07-03 10:54
Odaily News According to the official public account of Oco Cloud Chain, the Oco Cloud Chain technical team recently discovered that BRC-20 transactions have particular characteristics, and the commonly used BTC-UTXO label expansion model based on the "Common Spending" principle in the industry cannot be applied to BRC-20 transactions.
The Oco Cloud Chain team analyzed that this is because, in the transfer process of BRC-20, although the majority of input script types are single-signature (with a few multi-signature cases), the application of PSBT technology may add the seller and third-party platform addresses to the input in order to achieve multi-signature. Therefore, although multiple addresses in the input appear to be single-signature, they do not actually belong to the same entity or individual, making it impossible to judge based on the Common Spending principle.
The product manager of Oco Cloud Chain stated that address labels are important tools for understanding the encrypted world and the core competitiveness of on-chain data service providers. However, incorrect labels not only affect the overall accuracy and credibility of the label database, but may also mislead other market participants in judging the industry's development. We hope to attract attention from the market and engage in in-depth discussions and cooperation with more ecological partners on address labels and other on-chain issues to jointly promote the prosperity of the Web3 ecosystem.
The Oco Cloud Chain team analyzed that this is because, in the transfer process of BRC-20, although the majority of input script types are single-signature (with a few multi-signature cases), the application of PSBT technology may add the seller and third-party platform addresses to the input in order to achieve multi-signature. Therefore, although multiple addresses in the input appear to be single-signature, they do not actually belong to the same entity or individual, making it impossible to judge based on the Common Spending principle.
The product manager of Oco Cloud Chain stated that address labels are important tools for understanding the encrypted world and the core competitiveness of on-chain data service providers. However, incorrect labels not only affect the overall accuracy and credibility of the label database, but may also mislead other market participants in judging the industry's development. We hope to attract attention from the market and engage in in-depth discussions and cooperation with more ecological partners on address labels and other on-chain issues to jointly promote the prosperity of the Web3 ecosystem.
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