Non-Fungible Tokens on Bitcoin SV

Overview

Similar to fungible tokens, inside each UTXO, there are two parts associated with a non-fungible token in the data part of the token contract:

  1. A public key: to control issuance or transfer of a token
  2. An integer: to uniquely identify a token.

Issue Tokens

One special token UTXO containing the issuer can be split into multiple UTXOs to issue new tokens. Below is an example of splitting into two and thus issuing a new token i to Alice.

Issue Token i to Alice

Transfer Tokens

A token in a UTXO can be transferred as follows.

Alice Transfers Token i toBob

Combination

The following diagram shows the operation of a non-fungible token.

Issue and transfer tokens

Discussion

We have only shown the basics of non-fungible tokenization. It is straightforward to extend it, e.g.,:

  • Issue multiple new tokens at once in one transaction
  • Transfer multiple tokens in a single transaction
  • Place a cap on total supply
  • Burn tokens

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sCrypt

sCrypt

sCrypt (https://scrypt.io) is a company with a mission to provide integrated on-chain smart contracting solutions on Bitcoin SV