Analysis of the Similarities and Differences between OP_NET and Arch in Bitcoin Smart Contracts New Solutions

Recently, two smart contract implementation solutions OP_NET and Arch on the Bitcoin mainnet have sparked widespread discussion. Although these two solutions have similar names, there are significant differences in their technical implementation and positioning.

OP_NET: New Protocol and New Assets

OP_NET can be classified as a "protocol" similar to runes, BRC-20, and ARC-20. Its technical framework mainly consists of two parts:

1. Bitcoin Mainnet: as the "action initiation layer" and "final confirmation layer"
2. Execution Layer: Composed of OP_VM and OP_NET nodes, responsible for the execution of smart contracts and state confirmation.

The workflow of OP_NET is as follows:

1. The user initiates a transaction from the Bitcoin mainnet, and the transaction data contains the "BSI" string.
2. OP_VM executes smart contracts operations and updates the state
3. OP_NET node performs status confirmation
4. Bitcoin dApp obtaining contract execution results
5. The dApp submits the action results to the Bitcoin mainnet.

A special mechanism of OP_NET is "burning Bitcoin". The transaction fees include the basic Bitcoin network fees and OP_NET transaction fees (execution fees and priority fees). When the OP_NET transaction fee exceeds 0.0025 Bitcoin, 330 Satoshis will be "burned", and the remaining portion will serve as rewards for node operators.

OP_NET also integrates two standards, OP_20 and OP_721, reflecting the project's inclination towards "new protocols, new assets."

Arch: Bitcoin 1.5 Layer Solution

Arch is positioned as "a smart contract layer built on the Bitcoin mainnet", also known as "Bitcoin Layer 1.5". The project has secured $7 million in seed round funding led by Multicoin Capital.

Arch's workflow:

1. The user initiates a transaction from the Bitcoin mainnet.
2. Arch nodes sniff transactions and process and verify them
3. The leader node is responsible for establishing the Arch network blocks and submitting the finalized Bitcoin transactions.

Arch adopts the "FROST + ROAST" signature scheme, ensuring that the network's robustness can be guaranteed as long as 51% of network members cooperate honestly. Although Arch has its own Token as a Gas fee, users can still pay with Bitcoin, and the backend will handle the fee conversion.

Similarities and Differences between the Two

Similarities:

• Both regard the Bitcoin mainnet as the "initiating layer" and "confirmation layer"
• Each builds the "execution layer"

Differences:

• OP_NET is positioned as a "protocol", and Arch is positioned as "Bitcoin Layer 1.5"
• OP_NET uses Bitcoin as interaction consumption, Arch has its own Token.
• The explanation of Arch is more detailed in terms of technical details and network stability.

Outlook

Although these two projects bring new possibilities to the Bitcoin ecosystem, the longer block time of the Bitcoin mainnet may limit the efficiency of related dApps. In the future, Arch plans to conduct a Token Generation Event (TGE) in the first quarter of next year, which may launch related testing activities and dApps based on Arch. Meanwhile, the current development prospects of OP_NET may be constrained by the overall enthusiasm of the ecosystem.

Overall, these two projects represent the continuous exploration of the Bitcoin ecosystem in the field of smart contracts, providing new ideas and possibilities for the expansion of Bitcoin's functionalities.