The BurnAnchored Tokens (BAT) protocol introduces a decentr…
The BurnAnchored Tokens (BAT) protocol introduces a decentralized, trustless mechanism for cross-chain tokenization. Users burn Bitcoin (BTC) to create an immutable event, which is verified by Bitcoin SV (BSV) miners and used to mint corresponding BAT tokens on the BSV blockchain. By anchoring token creation to BTC burns, the protocol ensures a transparent, secure, and value-backed system without relying on centralized custodians or complex governance frameworks. This whitepaper provides an in-depth technical breakdown, theoretical analysis, and step-by-step explanation of the BAT process, including burning, verification, minting, incentives, security, and future considerations.
1. Introduction
Cross-chain tokenization has long been a challenge in the blockchain ecosystem. Traditional solutions, such as wrapped tokens (e.g., WBTC), depend on centralized custodians, introducing single points of failure and contradicting blockchain’s decentralized principles. Alternatives like atomic swaps, while trustless, are technically cumbersome and impractical for widespread adoption. The BAT protocol addresses these issues by enabling users to burn BTC — permanently removing it from circulation — and mint BAT tokens on BSV, leveraging BSV’s scalability and miner-driven infrastructure.
https://medium.com/@shemboothspain/whitepaper-burnanchored-tokens-bat-protocol-0aed41b26dc5
Replies
The section about actually minting tokens appears to not be possible as described, since BSV smart contracts can't access the coinbase tx of a block. Whilst SPV can be used to verify that it has been in many blocks, this could get potentially very expensive, having to include many coinbase transactions inside the smart contract. It would also be very difficult to get miners to agree to this as it requires significant extra setup. Also, slight mistake here. BSV addresses start with 1 not with q