BTCO

Inspiration

Our inspiration for creating Decentralized Identifiers (DIDs) on BTC, the world's most extensive and decentralized ledger, stems from its unmatched security and transparency. This ledger's tamper-resistant and distributed nature ensures a secure, resilient environment for identity management, free from central points of failure.

DIDs revolutionize identity verification, shifting from traditional centralized models to a privacy-centric, decentralized format. It empowers individuals with greater control over their data and builds trust in digital interactions. Additionally, the ledger's global adoption offers a universal framework for identity management, crucial in today's interconnected digital landscape.

The did:btco method won first place at the inaugural Ordinals Hackathon. This event provided the opportunity to actually build and implement our method, demonstrating its potential value to the broader Decentralized Identity community.

What it does

BTCO allows anyone to create, resolve, update, and deactivate DIDs on the BTC ledger without the need for sidechains or secondary tokens. It uses Ordinal Theory to name and number individual Satoshis (small fractions of Bitcoin) that are written with inscriptions. A command-line interface gives users the ability to use simple commands to embed a DID Document on a blank Satoshi, which they can later update or deactivate. Any did:btco that exists can also be resolved instantly using the CLI or through the Universal Resolver driver that was also created.

How we built it

We built BTCO using the ord wallet, the main wallet and explorer implementation adopted broadly by the Ordinals community. It hooks into the command-line tools of ord to manage the wallet, and the explorer is used to resolve data from the Ordinal inscription index.

Challenges we ran into

The original design of the did:btco method was quite complicated and involved quite a few more steps. As Ordinal Theory is still a very nascent technology, some of the new features released in the last few months have provided new powerful techniques. We used these to update the method, making it much simpler and more cost-effective by enabling data compression on the ledger.

Accomplishments that we're proud of

In the course of this hackathon, we achieved several noteworthy milestones with BTCO that we are immensely proud of. Firstly, we successfully enabled interactive interactions with the ord wallet, a complex task given its intricate functionalities. This accomplishment is significant as it enhances user engagement and simplifies the management of digital assets on the Bitcoin blockchain.

Secondly, we focused on simplifying the did:btco method, ensuring its ease of implementation. This effort was geared towards making the method more accessible to a broader range of users, thus fostering wider adoption and usability. This simplification was not merely a technical achievement but also a step towards democratizing the use of DIDs.

Lastly, our most notable achievement was creating a fully operational Bitcoin DID method registration system. This system is not only a testament to our technical skill and innovative thinking but also a valuable addition to the digital identity ecosystem. It represents a significant step forward in our journey towards creating more secure and efficient digital identity solutions.

We believe that these achievements will have a lasting impact and help pave the way for future advancements in this field.

What we learned

Throughout the development of BTCO, we acquired several key technical skills and insights. A significant learning was the creation of a driver for the Universal Resolver, crucial for integrating any new DID method into the existing digital identity ecosystem. We also gained proficiency in using DID Lint, a tool designed to validate the structure and syntax of DID Documents, ensuring their adherence to established standards and protocols.

In addition, our project involved extensive interaction with the ord wallet, enhancing our understanding of its functionalities and its role in managing digital assets on the BTC blockchain. An integral part of our development process was utilizing a lesser-known DIF work item, the "DID Registration specification." This specification guided us in ensuring that our interfaces were logical, user-friendly, and aligned with best practices in the field.

Furthermore, we kept pace with the latest developments in Ordinals, integrating a newly released feature towards the end of the hackathon. This feature was instrumental in simplifying a substantial portion of our codebase, demonstrating the impact of staying current with emerging technologies in the blockchain space. This process of continual learning and adaptation was vital in successfully developing and refining BTCO.

What's next for BTCO

Future developments for BTCO include implementing a short form of the data written onto the ledger, as BTC fees can be quite expensive. This would make operating on DIDs more cost-effective. Another feature we aim to develop is a walkthrough/onboarding process that allows users to create a DID Document without needing in-depth technical knowledge. Lastly, we plan to leverage the equivalentId property of DIDs to handle more gracefully the three different forms of identifiers we are allowing.

Built With

• bitcoin
• bun
• did
• didlint
• jq
• ordinals
• typescript
• universalresolver