Bitcoin Network Set for Major Transformation with OP_CAT, StarkWare CEO Says

Eli Ben Sasson, CEO of StarkWare, has predicted that a significant Bitcoin network upgrade called OP_CAT could go live within the next 12 months, bringing transformative capabilities such as covenants, zero-knowledge rollups (ZK-rollups), and true Bitcoin-native layer-2 (L2) networks.

Speaking to Cointelegraph at Devcon 2024 in Thailand, Ben Sasson explained that OP_CAT, if approved, will unlock advanced features for Bitcoin.

“OP_CAT would bring a suite of new functionality, enabling Bitcoin to support covenants, ZK-rollups, and new L2 networks that could improve transaction efficiency and scalability,” he said. Starknet, a popular Ethereum L2 network, would also be the first to settle natively on both Bitcoin and Ethereum through OP_CAT.

What is OP_CAT? A "Concatenate" Function with Big Potential

The OP_CAT upgrade, short for "operation code concatenate," was originally created by Bitcoin's pseudonymous founder Satoshi Nakamoto but was disabled in 2010 over security concerns. However, cryptographer Ethan Heilman and Botanix Labs engineer Armin Sabouri recently proposed re-activating OP_CAT in October 2023 via a soft fork. Ben Sasson explained that while OP_CAT’s impact may seem complex, the core concept is relatively simple: it adds a function that lets Bitcoin "concatenate" or merge strings of data, similar to adding a new button to a calculator that enables users to perform more complex operations.

“If you think of Bitcoin as an old scientific calculator,” Ben Sasson explained, “OP_CAT is like adding a new button that allows you to link two pieces of data together, opening up options for running programs, inspecting files, and operating more efficiently within the Bitcoin network.”

Why OP_CAT Matters for Bitcoin’s Future

The primary motivation behind OP_CAT, according to Ben Sasson, is to help Bitcoin fulfill its original vision as a global payment network. He highlighted that the high fees currently associated with Bitcoin transactions have limited its use for everyday payments. “With OP_CAT, buying a cup of coffee with Bitcoin could become feasible without paying a fee that’s ten times the cost of that coffee,” he noted.

At the Bitcoin Next conference in Bangkok on November 13, Ben Sasson emphasized the potential of a true Bitcoin-native L2, which could bring significant improvements to transaction speed and cost-effectiveness.

Could OP_CAT Allow Bitcoin to Compete with Ethereum in DeFi?

Several crypto experts suggest that OP_CAT could allow Bitcoin to eventually rival Ethereum in decentralized finance (DeFi) activity and volume. Currently, Bitcoin has numerous “sidechains” that act as L2 solutions but aren’t truly native to the Bitcoin blockchain. These sidechains often rely on two-way pegs or bridging mechanisms, which can limit security and functionality, according to Lachlan Feeney, founder of Web3 development firm Labrys. Feeney pointed out that these existing sidechains lack the security and innovation that Bitcoin’s most dedicated users demand, making them hesitant to invest their Bitcoin into these solutions.

By enabling native Bitcoin L2 networks, OP_CAT could overcome these limitations and bring Bitcoin closer to becoming a viable player in DeFi, Ben Sasson noted. The proposed upgrade is seen as part of StarkWare’s broader goal of allowing Bitcoin to achieve its full potential as a versatile and widely used digital currency.

As the crypto industry closely watches OP_CAT’s development, the upgrade promises to unlock new possibilities for Bitcoin, potentially reshaping its role in the global financial landscape.