SatsTamp Protocol Specification Overview: Purpose: SatsTamp…

SatsTamp Protocol Specification
Overview:
Purpose: SatsTamp enables users to inscribe data onto individual satoshis, creating unique, timestamped digital assets (e.g., collectibles, proofs of existence, or time-bound certificates) that are fully on-chain and immutable.

Key Features:
Assigns a unique identifier to each satoshi based on block height and transaction timestamp.

Embeds data (text, images, etc.) in the witness data of a Taproot transaction.

Ensures data immutability and traceability using Bitcoin’s blockchain.

Introduces a rarity system based on block height milestones (e.g., every 1000th block).

Dependencies: Relies on Bitcoin’s SegWit (2017) and Taproot (2021) upgrades for witness data and script flexibility.

Use Cases: Digital collectibles, timestamped proofs (e.g., for documents), decentralized time capsules.

Protocol Rules:
Satoshi Identification:
Each satoshi is assigned a unique identifier (SatsTamp ID) based on the formula:

SatsTamp ID = block_height || tx_index || output_index || timestamp

Where:
block_height: The block in which the satoshi is inscribed.

tx_index: The transaction’s index in the block.

output_index: The output index in the transaction.

timestamp: The transaction’s locktime or block timestamp (in Unix epoch time).

Example: A satoshi inscribed in block 800000, transaction 5, output 0, with timestamp 1735689600 would have ID 800000:5:0:1735689600.

Inscription Process:
Data is embedded in the witness data of a Taproot transaction using a specific script format:

OP_RETURN <SatsTamp Protocol Identifier> <Data Payload> <Timestamp> <Metadata>

SatsTamp Protocol Identifier: A fixed string (e.g., SATSTAMP_v1) to mark the transaction as a SatsTamp inscription.

Data Payload: The content to inscribe (e.g., JSON, base64-encoded image, or text, up to 4 MB with Taproot).

Timestamp: The Unix epoch time of the inscription.

Metadata: Optional fields like creator address, data type, or rarity tag.

Rarity System:
Satoshis inscribed in blocks divisible by 1000 (e.g., block 800000, 801000) are tagged as “Rare SatsTamps.”

Rarity is indicated in the metadata with a field: rarity: rare | common.

Wallet Compatibility:
Requires a Taproot-compatible wallet (e.g., Xverse, Sparrow Wallet) with coin control to avoid spending inscribed satoshis.

Wallets must recognize the SATSTAMP_v1 identifier to display inscribed data.

Transaction Rules:
Inscriptions are created via a Taproot transaction with the data in the witness section.

The inscribed satoshi must be sent to a Taproot address to maintain compatibility.

Transactions must include sufficient fees to account for data size and network congestion.