OP_NET is set to launch a testnet that introduces decentralized finance (DeFi) and smart contract capabilities to the Bitcoin blockchain, leveraging the Tapscript component of the Taproot upgrade. This initiative aims to create a permissionless meta protocol system that allows the deployment of decentralized applications directly on Bitcoin.
Co-founder Chad Master emphasizes that OP_NET enables developers to write smart contracts using various programming languages, including AssemblyScript, Rust, Python, and C++, through WebAssembly (WASM). Transaction fees will solely require Bitcoin, with OP_NET transactions marked by the string “BSI” and directed to unspendable addresses that serve as contract addresses.
The OP_NET virtual machine (OP_VM) operates similarly to the Ethereum Virtual Machine, facilitating the execution of smart contracts. Development began in February, initially focused on a decentralized exchange called MotoSwap, but has since shifted to building a comprehensive DeFi ecosystem that includes lending protocols and stablecoins.
While acknowledging the risks of scams in a permissionless environment, the OP_NET team aims to foster innovation. The project will also support fungible (OP_20) and non-fungible tokens (OP_721), aligning with Ethereum's standards.
OP_NET represents a significant step toward enabling DeFi on Bitcoin, providing opportunities for liquidity generation and application development that benefit the broader Bitcoin community. The mainnet is expected to launch in late September.
