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This article provides a technical description of BitcoinOS (BOS), the role of node operators, and the utility of $BOS token regarding how it interacts with users and nodes.
BOS Description
BitcoinOS is a network of nodes that allow off-chain compute to be proven and executed as transactions on Bitcoin mainnet. This allows for turing-complete computation on Bitcoin, opening the door to smart contracts, programmable tokens, trustless bridging, shielded transactions, and more.
BOS is run by a network of nodes that read/write ZK-proofs of compute to Bitcoin, pre-commit to smart contracts, provide a marketplace for compute and liquidity, and process bridging and programmable token transactions.
BOS asset transactions are secured by Bitcoin PoW, settle to Bitcoin mainnet, and pay Bitcoin miner fees.
$BOS token acts as a coordination mechanism across the BOS ecosystem to provide a uniform set of security assumptions and a decentralized SLA (service level agreement) across chains and execution environments.
Node Operators: Roles and Functions
BOS node operators perform roles critical to the functioning of BitcoinOS. All nodes act as ZK verifiers, verifying all ZK proofs and rejecting incorrect or fraudulent proofs, thus securing the network. SLAM (SLA maintaining) nodes also stake $BOS tokens, committing to uphold the system-wide SLA. This entitles them to additional revenue.
Nodes can rerun and verify computation provided by users and prove it as ZKs posted to Bitcoin. This allows users to use the $BOS token as a gas token to pay for compute.
Over time, in addition to fraud rejection, it is anticipated that SLAM nodes may be able to opt-in to several other functions that maintain the functioning of the network:
- Compute Marketplace: BOS provides a marketplace for compute proving and gas fee calculation based on a competitive market.
- Token Indexing: Nodes can track and index programmable tokens providing a convenient way for lite nodes and users to obtain this data without having to read directly from the blockchains.
- Vault Operation: Nodes can act as vault operators, pre-committing to vault UTXOs. Vaults are BOS smart contracts that maintain BTC and other token balances. Multichain vaults extend the use of BOS to other chains and compute environments and allow BOS to replace bridges.
- Token Marketplace: BitcoinOS facilitates an order book for atomic swaps between integrated ledgers, chains and compute environments.
- Liquidity Provision: Provide liquidity and make markets for multichain vaults, bridging, and token swap transactions.
- Interoperability: Messaging and composability between integrated compute environments.
Token Utility
Staking
To act as a SLAM node, nodes must stake $BOS tokens. The function of this stake is to act as collateral to ensure correctness (liveness and safety), creating a decentralized SLA. Nodes can lose their stake if they fail to correctly verify proofs. The stake from nodes that fail to meet the system SLA is split between the SLAM node that enforced the SLA (detected a correctness failure) and a burn function.
It’s important to note that even non-staked nodes can verify ZK proofs. This aspect of BitcoinOS is permissionless and the security of the system does not rest on BOS staking or the $BOS token. However, staked SLAM nodes are required to verify proofs and reject false or fraudulent proofs. This provides an additional level of security to BitcoinOS, by ensuring that there will always be verifying nodes. SLAM nodes must attest to verification or risk being slashed.
As mentioned above, SLAM Nodes can also opt-in to perform other node functions. If they do, they can earn additional revenue, but can also lose their tokens if they fail to correctly perform their functions.
Gas Token
Users can pay prover nodes to process their compute with BOS into ZK-proofs and post them to Bitcoin. BOS transactions require ZK or compute processing and a BTC transaction. The ZK/compute processing is paid in $BOS, while the Bitcoin transaction is paid in BTC. Users can pay the entire fee in either $BOS or BTC.
