An Insight into DotWallet BTC Token Technology - DotWallet

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An Insight into DotWallet BTC Token Technology
2019.10.24

In DotWallet, BTCs are stored in the form of BTC tokens. 1 BTC token = 1 BTC. BTC token is a digital token issued by DotWallet using the latest tokenized technology of BSV. This technology takes the advantages of the BSV network to lower the high fees and accelerate the slow account receipt usually seen on traditional on-chain BTC wallets. In addition, compared with traditional database-based off-chain wallets, BTC token also enjoys a core advantage that all of its transactional data is auditable on the blockchain.

 

 

The Tokenized Protocol is an open-source application layer protocol that utilizes the BSV network to transmit and store messages. Simply speaking, the issuance, transfer, and settlement of tokens are implemented in the form of smart contracts, within which the assets and corresponding operations are written into the chain of BSV in tokenized form. All steps and intermediate data are publicized on the chain of BSV for verification, meaning users’ assets are managed in a more secure, stable, and cost-effective way.

 

 

When a user sends a token to the BSV-tokenized wallet, the wallet will search and identify the prefix identifier at the OP_RETURN field and mark this transaction as a “token transaction” upon confirmation, and synchronize the user’s account to the state that this token is received. The wallet can also store the public address in the smart contract as a monitoring address so that any further action of the token will be monitored at this public address.

 

 

Therefore, DotWallet will automatically convert the BTCs deposited by the user into BTC tokens, while the transactions of these assets inside DotWallet or with any wallet that supports BTC tokens will run on the BSV chain rather than on the BTC chain; while the user withdraws the assets from DotWallet or any wallet that does not support BTC tokens, BTC tokens will convert into BTCs, and the user can find this transaction both on the BTC and the BSV chains simultaneously.

 

With the technical purpose of eliminating the upper limit to blocks and stabilizing protocols, the BSV chain has provided indispensable preconditions for the implementation and development of the tokenized technology thanks to its advantages of security, stability, and high efficiency.