What Are: ‘BITCOIN STAMPS’

This article is written in collaboration with DRΞΞZY.

Bitcoin STAMP (Secure Tradeable Art Maintained Permanently) protocol is a method of embedding base64-formatted image data onto the Bitcoin blockchain using transaction outputs in a unique way. This approach aims to achieve permanence and immutability by storing the data directly in the Bitcoin blockchain , making it impossible to prune from a full node.

BITCOIN STAMPS (HI)STORY

In 2014, the Counterparty protocol was launched by Robert Dermody, Adam Krellenstein, and Evan Wagner, marking the birth of the very first standardized NFTs on the Bitcoin Blockchain. At that time JP Jansen created his first NFT and other created the most coveted collections to emerge were Spell of Genesis and Rare Pepes.

Mike in Space!, an artist and developer who has been utilizing Counterparty since 2017, created a Proof-of-Concept for a Name Service last year. This service was built on Counterparty and laid the groundwork for the STAMPS protocol. Kevin and Arwyn took on the task of coding a functional version of the protocol based on Mike’s initial concept.

HOW BITCOIN STAMPS WORKS

Bitcoin Stamps images are stored on the Bitcoin blockchain in a permanent and unchangeable manner. Instead of keeping the images on a separate website or server, Bitcoin Stamps embed the image data directly into the Bitcoin transactions.

To create a Bitcoin Stamp, an image is converted into a special format called base64. This format allows the image to be represented as a string of characters. This image string is added to the description of a Bitcoin transaction and sent to the Bitcoin network using the Counterparty protocol.

Each Bitcoin Stamp is given a number based on when the transaction took place. This helps organize the Stamps in chronological order. The first Bitcoin Stamp is the first transaction with a valid image string in its description. Transactions with invalid image strings are not considered Bitcoin Stamps.

Bitcoin Stamps are different from other digital collectibles because they are stored directly on the Bitcoin blockchain, specifically on unspent transaction outputs (UTXOs). This ensures that the images are securely and permanently recorded on the blockchain.

BITCOIN STAMPS PROTOCOLS

Currently there are 2 main protocols being used in Bitcoin Stamps: SRC-20 and SRC-721.

SRC-20:

SRC-20 is a groundbreaking token specification that revolutionizes the world of counterparty assets. Inspired by the BRC-20 standard, SRC20 tokens operate in a distinct manner, diverging from traditional counterparts. These cryptographic tokens are built upon the open Counterparty protocol, originally designed for issuing non-fungible tokens (NFTs). What sets SRC-20 tokens apart is their unique acquisition process. Unlike traditional tokens, they eliminate the need to burn bitcoins or employ alternative cryptocurrencies (altcoins). Instead, SRC-20 tokens facilitate seamless payment through BTC transactions, fostering an entire ecosystem that thrives around their usage. This innovative approach opens up new possibilities and expands the potential applications of tokenized assets. With SRC-20, the future of tokenization takes a significant leap forward.

SRC-721:

SRC-721 is a specification that focuses on enabling the creation of higher-resolution composable NFTs at a more affordable cost. It addresses the need for an inexpensive way to mint these NFTs, particularly for projects like 10k profile pictures (pfp). The protocol allows for the storage of collection art as layers using the STAMPS protocol, reducing file size by utilizing techniques like indexed color palettes for each layer. By referencing the on-chain data, a small JSON file is used to create an NFT composed of these layers, resulting in visually appealing and high-quality final products.

To ensure the stability of asset references in the face of protocol changes, the SRC-721 specification utilizes counterparty asset IDs. This helps to safeguard deployed SRC-721 collections from being impacted by future changes to the Stamps protocol.

The specification outlines various transaction types, including deployment, reveal, minting for collections and individual items, and transfer/use of SRC-721 tokens. The requirements for SRC-721 tokens are specified, including the allowed characters, length, and limitations for fields like maximum mints and limits per mint.

MINTING BITCOIN STAMP ART

Minting stamp art has become easier than ever with the availability of various platforms such as RareStamp, OpenStamp, StampChain and Assetic. These platforms provide artists and creators with the opportunity to showcase their unique stamp designs and bring them to life as non-fungible tokens (NFTs) on the blockchain.

By leveraging these platforms, artists can mint their stamp art, assigning it a unique digital identity and ensuring its authenticity and ownership.

RareStamp minting platform is highly recommended for its user-friendly and seamless experience.

BUYING AND SELLING BITCOIN STAMP ART

To create a dispenser, artists need to use the FreeWallet functionality, which may be a bit cumbersome for novice users. The created dispenser will become visible on xchain.io.

Furthermore, if you own a Bitcoin Stamp and wish to sell it, you can create a dispenser for that purpose.

When sending bitcoin to a dispenser, there are a few important details to consider:

• Avoid locking your Bitcoin Stamp, use FreeWallet, currently the only wallet that allows you to create a dispenser for selling or sending stamps to another address. The Stamp Wallet offers transfer functionality.
• Ensure you use bitcoin addresses starting with bc1q, Native Segwit, or Legacy addresses starting with 1. Taproot addresses, starting with bc1p, are not supported.

MINTING SRC-20 TOKENS

You can own SRC-20 tokens by either, mint or buying from a marketplace.

Although there are many options, lately The Stamp Wallet is becoming popular.

Minting an SRC20 token using the Stamp Wallet is a straightforward process.

Here are the step-by-step instructions to help you understand how to mint your own SRC-20 token:

1. Click on the “SRC-20” option in the wallet interface, then you click on “mint”.
2. Enter the recipient’s address in the “Recipient” box. This is the address where you want to receive the newly minted tokens.
3. Specify the name of the token you want to mint in the “Token” box.
4. Input the desired amount of tokens you wish to mint in the corresponding field.
5. Once you have entered all the required details, click on the “Mint” button to initiate the minting process.
6. After the transaction is confirmed, the newly minted SRC-20 tokens will be sent to the specified recipient address.

TRADING SRC-20 TOKENS

Trading on the marketplace.

At the time of writing, there’s only two marketplace where you can trade SRC-20 tokens:

1. The Stamp Wallet
2. Openstamp

DEPLOYING SRC-20 TOKENS

The Stamp Wallet simplifies the process of deploying your own SRC-20 tokens on the Stampchain. With just a few clicks, users can utilize the “Deploy” feature to easily create and launch their custom tokens. This user-friendly functionality opens up opportunities for individuals to bring their token ideas to life and make them accessible to a wider audience. The Stamp Wallet empowers users to be part of the vibrant token ecosystem by providing a seamless experience for token creation and distribution.

Rarestamp is also a user-friendly platform for deploying your own SRC-20 tokens. Here’s a handy guide on how to use Rarestamp to make the process even easier.

INDEX OF INFORMATION

Team Official Links

Website

Twitter

Telegram

Discord

Stamp News

Wallets

The Stamp Wallet

FreeWallet

Marketplaces

RareStamp

Stampverse

Openstamp

https://stamped.ninja/

Interesting people to follow

Mikeinspace

RΞINAMORA.btc

Arwyn

Derpnation

Blockjack8

REGAN

USEFUL LINKS

How to use Counterparty (video)

How to create dispenser to sell your Asset

Converting image to Base64

Converting base64 to image

Electrum-Counterparty/decode_tx.html at master · Jpja … — GitHub : Find the Base64 string and other information from a Bitcoin transaction ID

CloudConvert

TinyPNG

CompressPNG

Jimpl — Tool that removes metadata from a file (can reduce file size)

Vecta — A tool that can reduce the size of a vector SVG image

Gimp — Free image editor (alternative to Photoshop)

Pixilart — Site to create pixel art

RareStamp — Alternative site to view Stamps and you can visit #tools-and-resources part of their

RareStamp’s Discord

STAMPS — Kaleidoscope XCP — Another alternative site to view Stamps (KaleidoscopeXCP)

NFT Market — Scarce City — Stamps on Scarce.City

Notes:

Since this article is focused on those who want to start with Bitcoin Stamps.

• Ask in the official TG channels before performing tasks for the first time. Bitcoin Stamps is a very supportive community.
• No panic: If you funded a dispenser with your Hiro Wallet with bitcoin addresses starting with bc1q, Native Segwit or Legacy starting with 1 your stamp is not visible due to lack of support. Check in xchain.io that given address.
• Never share your private keys or your seed words.

If you wish to contact the writers to give feedback:

DRΞΞZY

TonyNL

And finally a huge thanks to:

Mikeinspace

Blockjack8