POW-20 Protocol
POW-20 protocol is an extension of BRC-20 protocol that introduces and requires proof-of-work (PoW) to mint and produce new tokens.
Last updated
POW-20 protocol is an extension of BRC-20 protocol that introduces and requires proof-of-work (PoW) to mint and produce new tokens.
Last updated
Proof-of-Work is the backbone of Bitcoin (BTC) and other PoW chains like Litecoin (LTC), Doge (DOGE), Bitcoin Cash (BCH), Bitcoin SV (BSV), etc. However, derivative assets (tokens/NFTs) like that run on these base layers have traditionally been issued or distributed through means other than PoW. While recently enabled a version of PoW token mining, it does so at a cost, namely understandability for the average person and a learning curve to get started. It's fairly complex if you're not a dev. It also introduces challenges for exchanges and indexers that may wish to implement them.
What is needed is something simple that "extends" what we already have with , making it easy for users, exchanges, and indexers to get started or implement with a few lines of code.
The protocol is straight forward and should look familiar.
New Fields
difficulty: The number of leading zeros required in the double sha256 hash of the solution
startBlock: Any future block number
icon (optional): a reference inscriptionId or link to the icon
New Fields
solution: A unique string that is double sha256 hashed to meet the difficulty specified in the deploy inscription
A solution is composed of 4 parts delimited by a colon:
TICK - The ticker symbol
BTC_ADDRESS - The BTC ordinal address that the inscription is inscribed to (to prevent mempool sniping)
START_BLOCK_HEADER - The future block header/hash of the startBlock
specified in the deploy inscription (to prevent pre-mines)
NONCE - A random nonce
Is the address the same address found in the inscription? Must be true
Does the solution contain the correct START_BLOCK_HEADER
header for the startBlock
found in the deploy inscription? Must be true
Does the double sha256 hash of the solution meet the difficulty
found in the deploy inscription? Must be true
Has the solution been seen before? Must be false
Valid Deploy:
Valid Mint:
The double sha256 hash of the above solution produces the following hash which meets the example deployment difficulty requirement of 3:
Valid Transfer:
Invalid Mint:
The double sha256 hash of the above solution produces the following hash which does NOT meet the deployment difficulty requirement and is invalid:
NOTE: The above protocol applies to all layer-1 chains other than BSV which implements an Hash-to-Mint (HTM) for token issuance based on provided proof-of-work.