New Solution for Bitcoin Mainnet Smart Contracts: A Comparative Analysis of OP_NET and Arch

Recently, OP_NET and Arch, two solutions for implementing smart contracts on the Bitcoin Mainnet, have sparked extensive discussions. Although OP_NET's name is similar to OP_CAT, their implementation methods are completely different.

OP_CAT is an opcode for Bitcoin that was removed by Satoshi Nakamoto in 2010. It allows for string concatenation operations and could be the first step towards implementing smart contracts on Bitcoin. Currently, the proposal for the revival of OP_CAT is still under discussion and has not yet reached a consensus.

In comparison, OP_NET is more similar to protocols like Rune and BRC-20. Its framework includes the Bitcoin Mainnet as the "action initiation layer" and "final confirmation layer," as well as the "execution layer" composed of OP_VM and OP_NET nodes. Users initiate transactions on the Bitcoin Mainnet, the execution layer executes contracts and updates the state, and finally submits the results back to the Mainnet.

One of the unique features of OP_NET is its "burn Bitcoin" mechanism. The transaction fee consists of the Bitcoin network fee and the OP_NET transaction fee, which includes the execution fee and the priority fee. When the OP_NET transaction fee exceeds 0.0025 Bitcoin, 330 Satoshi will be "burned", and the remaining portion will be awarded to node operators.

Arch is positioned as "Bitcoin Layer 1.5", aiming to build a complete layer for smart contracts. It has secured $7 million in seed funding and will issue its own token as gas fees and validator staking tokens. The workflow of Arch is similar to OP_NET, but provides more details on network stability and technical details of the execution layer.

Although Arch has its own coin, users can still use Bitcoin to pay interaction fees, and the backend will automatically convert the fees. This design allows users to avoid using an additional wallet.

Overall, OP_NET is more like a new protocol, while Arch aims to be a smart contracts extension layer for Bitcoin. Both face the limitation of long confirmation times on the Bitcoin Mainnet, but their explorations undoubtedly bring new possibilities to the Bitcoin ecosystem.

It is worth noting that Arch's token may have its initial token issuance in the first quarter of next year (TGE). Users interested in this can follow related testing activities and decentralized applications developed based on Arch. Meanwhile, OP_NET has not yet launched any activities for users to participate in, and its development may still require support from the overall ecosystem's enthusiasm.