What is the Bitcoin Script Language?
Table of Contents
Decoding Bitcoin Script: The Language of Bitcoin Transactions
The Bitcoin Script language is the core component that drives Bitcoin transactions. It's a specialized language that sets the rules for how Bitcoin can be spent, ensuring secure and verifiable transfers. This article explains Bitcoin Script, its purpose, how it functions, and its limitations. We'll also explore its relationship with smart contracts, the Lightning Network, sidechains, and Ordinals.
For a basic understanding of Bitcoin, see What is Bitcoin? and a quick introduction to Bitcoin. Diver deeper and learn about how Bitcoin transactions work and discover Bitcoin's origin story-from an idea to a global financial revolution.
What is Bitcoin Script?
Bitcoin Script is a stack-based scripting language, similar to Forth, but it's not Turing-complete. This means it can't perform complex calculations like loops or conditional branching, unlike languages used for general-purpose programming. This design choice prioritizes security and prevents issues like infinite loops that could disrupt the Bitcoin network.
Learn more about smart contracts and Turing completeness.
How Bitcoin Script Works
Bitcoin Script uses a system where data is pushed onto and popped off a "stack" during execution. Here's a simplified explanation of a Bitcoin transaction using Script:
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Transaction Creation: When sending Bitcoin, your wallet creates a transaction with inputs (the Bitcoin being spent) and outputs (the recipient's address and amount). Learn more about sending Bitcoin.
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Locking Script (ScriptPubKey): Each output has a locking script, setting the conditions for spending those Bitcoin. This script is linked to the recipient's address.
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Unlocking Script (ScriptSig): To spend the Bitcoin, the sender provides an unlocking script that fulfills the locking script's conditions. This script, created by the sender's wallet, includes their digital signature, proving ownership.
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Script Execution: The Bitcoin network runs the unlocking script followed by the locking script. If the combined execution results in "true," the transaction is valid.
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Transaction Confirmation: Valid transactions are added to a block and then to the blockchain, confirming the Bitcoin transfer. Learn more about confirmations.
Example: A Simple Bitcoin Transaction in Script
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Locking Script (ScriptPubKey):
OP_DUP OP_HASH160 <Recipient's Public Key Hash> OP_EQUALVERIFY OP_CHECKSIGThis script requires a signature matching the recipient's public key hash. -
Unlocking Script (ScriptSig):
<Signature> <Sender's Public Key>This provides the signature and public key to unlock the Bitcoin.
Together, these scripts verify the signature against the public key and hash, ensuring the spender is the rightful owner.
Bitcoin Script and Related Concepts
Bitcoin Script's limitations have spurred innovative solutions:
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Lightning Network: A layer-2 solution using Script for payment channels. Learn more about the Lightning Network.
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Sidechains: Separate blockchains linked to Bitcoin, using Script for interoperability. Learn more about sidechains.
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Ordinals: Using Script to add data to satoshis. Learn more: Bitcoin Ordinals.
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Smart Contracts: While limited, Bitcoin Script allows for basic smart contracts like multi-signature wallets. Learn more about smart contracts on Bitcoin.
Conclusion
Bitcoin Script is a fundamental part of Bitcoin transactions, ensuring security and verifiability. Its limitations have led to innovative solutions like sidechains and the Lightning Network. Understanding Bitcoin Script helps you grasp how Bitcoin transactions work and the network's security model.
Learn about Bitcoin wallets and how to create one. Understand how to buy, send and receive Bitcoin. Also, explore Bitcoin's price history and Bitcoin price predictions.
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