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Introduction to Mineable UTXOs

The concept of Mineable UTXOs introduces a novel approach to incentivizing miners and enhancing the security of the OP_NET ecosystem. By embedding cryptographic collision challenges within Bitcoin UTXOs, we create a unique mechanism for miners to claim rewards while improving the network's robustness.

Key Benefits of Mineable UTXOs
  • Enhanced Miner Rewards: Miners can claim transaction fees by solving cryptographic challenges, increasing their earnings.
  • Improved Security for OP_NET: Each solved challenge acts as a checkpoint, reinforcing the integrity of the OP_NET ecosystem.
  • Cross-Chain Possibilities: The mechanism can extend across multiple blockchains, enabling shared incentives and rewards.

What are Mineable UTXOs?

Mineable UTXOs are specialized unspent transaction outputs (UTXOs) that contain cryptographic challenges, such as finding a SHA-1 collision. Solving these challenges enables miners to claim funds locked within the UTXO. This innovative approach ensures that:

  • Fees are recycled back into the ecosystem rather than being burned.
  • Miners are incentivized to solve cryptographic puzzles, acting as additional checkpoints for OP_NET security.
  • Cross-chain mining opportunities become possible, allowing for shared incentives across multiple blockchain networks.

How It Works

  1. Challenge Creation A UTXO is created with a locking script that defines a collision challenge. Miners must provide a solution that collides with preimage1 to produce the same SHA-1 hash.

  2. Reward Claim Once a miner finds a valid collision, they can spend the UTXO by providing the preimages, claiming the locked funds.

  3. Cross-Chain Integration The same challenge can exist on multiple chains, allowing miners to claim rewards across networks simultaneously.


What’s Next?

Learn more about how to implement and optimize cross-chain mining for your network: