What Are Bitcoin Stamps?
Bitcoin Stamps are a way to create and store non-fungible tokens (NFTs) directly on the Bitcoin blockchain. They utilize Bitcoin’s UTXO (unspent transaction outputs) model for enhanced immutability and security. This allows image or token data to be permanently written on-chain without relying on prunable witness data.
Bitcoin Stamps Explained
Bitcoin Stamps (short for “Bitcoin Secure Tradeable Art Maintained Securely”) were created by an enthusiast known as Mike in Space. They were inspired by the Ordinals protocol but aim to provide an even more permanent method of storing digital assets on Bitcoin.
Data in the UTXO: Bitcoin Stamps embed data (such as images) into the UTXO set, making it more difficult or impossible to prune, unlike data in witness segments.
Immutability: Since UTXOs are integral to the Bitcoin blockchain’s accounting system, stamped data remains secure and more resistant to removal.
NFT-Like Functionality: Stamps can represent digital collectibles, art, or other non-fungible assets, similar to NFTs on other blockchains.
Learn how to receive Ordinals in your Leather Wallet.
How Do Bitcoin Stamps Work?
On-Chain Storage: Instead of placing metadata or images in the witness field of a transaction, Stamps store their data in the UTXO set.
Data Encoding: Stamps typically encode information in Base64 format, preceded by a marker like "stamp:base64" or "STAMP:base64".
Token Creation: Once the data is inscribed in a Bitcoin transaction’s UTXO, it becomes a unique “Stamp” that anyone can view, verify, and trade.
Permanent Record: The data in the UTXO cannot be pruned from the blockchain, ensuring long-term persistence.
How to Buy Bitcoin Stamps?
Using a Bitcoin wallet that supports Bitcoin Stamps (like Leather) is typically the easiest route. Here’s how:
Set Up a Stamp-Compatible Wallet
Download or access Leather Wallet.
Fund it with a small amount of BTC to cover transaction fees.
Choose a Marketplace
Visit an exchange or marketplace that lists Bitcoin Stamps, such as openstamp.io.
Research the available Stamps or tokens you want to buy.
Place an Order
Browse listings, compare prices, and select the Stamp you’re interested in.
Place a buy order through the marketplace interface.
Confirm the Transaction
Approve the purchase within your wallet.
Once the transaction is confirmed on-chain, the Stamp is added to your wallet’s UTXO set.
What is SRC-20 and How Does It Work?
SRC-20 is a token standard built on the same principle as Bitcoin Stamps. It encodes token information in the UTXO set, offering semi-fungible functionality on Bitcoin. Inspired by ERC-20 (on Ethereum) and BRC-20 (on Bitcoin Ordinals), SRC-20 extends token creation and trading on Bitcoin in a more permanent way:
UTXO-Based Tokens: By storing token data in the UTXO itself, SRC-20 tokens are harder to remove from the chain.
Ease of Minting: Minting SRC-20 tokens involves placing the "STAMP:base64" string in a transaction’s description field.
Semi-Fungibility: These tokens can represent collectibles, memecoins, or other semi-fungible assets.
Learn more about UTXOs.
Bitcoin Stamps vs. Bitcoin Ordinals
Data Location: Bitcoin Stamps embed data in the UTXO. Ordinals use the witness field.
Pruning: Stamps cannot be easily pruned. Some node configurations can prune Ordinals data in witness fields.
Signature: Stamps often use multisig. Ordinals typically use single-sig transactions.
File Types: Ordinals can hold various file types (audio, video, text), while Stamps are more image-focused.
Advantages of SRC-20 Tokens
Permanent Storage – Data in the UTXO set makes tokens more resilient to pruning.
Enhanced Security – SRC-20 leverages Bitcoin’s network and consensus.
Semi-Fungible Functionality – Tokens represent fungible (like memecoins) and collectible (NFT-like) assets.
How Do I Buy SRC-20 Tokens?
Buying SRC-20 tokens on a platform that supports them is straightforward. Follow these steps:
Select an SRC-20-Compatible Wallet
Install Leather, which supports SRC-20.
Fund Your Wallet with BTC
Transfer some Bitcoin to cover the cost of the tokens and network fees.
Find a Marketplace
Decide whether to use a DEX (like the Counterparty DEX), a specialized marketplace (like RareStamp), or a P2P community.
Research token details and market prices.
Place Your Order
Choose the desired token, specify an amount, and confirm the transaction.
Wait for on-chain confirmation.
Secure Your Tokens
Once purchased, your SRC-20 tokens will appear in your wallet.
Keep your wallet’s private keys safe.
Popular SRC-20 Tokens
STAMP – One of the earliest SRC-20 tokens, popular for demonstrating the protocol’s capabilities.
KEVIN – The first SRC-20 token minted in May 2023, widely recognized in the Bitcoin Stamps community.
LUFFY, PEPE, HODL, SATO – Other notable SRC-20 tokens that have gained traction, many originating as memecoins.
Future of SRC-20 Tokens
SRC-20 tokens are evolving quickly, with developers building new tools and marketplaces that leverage Bitcoin’s security and permanence. As more users experiment with NFTs, memecoins, and other tokenized assets on Bitcoin, SRC-20 could become a cornerstone of Bitcoin DeFi infrastructure.
Ongoing innovations aim to reduce data overhead, improve efficiency, and maintain Bitcoin’s core principles of decentralization and trustlessness.