How BTC connects with EVM?

Satschain connects Bitcoin (BTC) to the Ethereum Virtual Machine (EVM) through a series of innovative mechanisms. Here is a detailed explanation:

1. Custom Transaction Format and Encoding:

Satschain employs a custom transaction format that incorporates Recursive Length Prefix (RLP)-encoded data within Bitcoin's OP_RETURN outputs. This ensures that the transactions are immutable and functional on the Bitcoin blockchain.

1. OP_RETURN and Smart Indexers:

Each interaction with the EVM layer is explicitly signed and transmitted to the Bitcoin network by the user using the OP_RETURN opcode. The transactions are then intercepted and processed by smart indexers along with a distributed node network. These smart indexers validate the transactions and forward them to an EVM-compliant execution environment.

1. Address Conversion Mechanism:

Satschain facilitates seamless interoperability by converting Bitcoin’s native SegWit addresses (Bech32 format) into a format compatible with Ethereum's addressing system. This enables the efficient handling of cross-chain transactions.

1. Smart Contract Integration:

The platform allows users to deploy Solidity-written smart contracts directly on the Bitcoin blockchain. By using RLP encoding and Ethereum's cryptographic protocols, the smart contract instructions are packaged and signed, then immutably inscribed onto the Bitcoin blockchain via the OP_RETURN opcode.

1. Execution Environment:

Satschain integrates a bespoke execution environment called the Nuclei Engine, which processes all smart contract transactions using a virtual machine compatible with EVM specifications. This environment maintains the state of each contract, ensuring consistency and reversibility of all transitions within the blockchain.

1. Economic Model:

Satschain utilizes its native token, $SACH, for the payment of gas fees within its distributed execution environment. Initially, transactions are provisioned at zero gas price to encourage user onboarding and engagement, transitioning to regular operations where $SACH becomes essential for transaction facilitation.

Through these mechanisms, Satschain merges Ethereum’s computational versatility with Bitcoin's foundational security properties, creating a seamless and secure connection between BTC and the EVM. This integration allows for advanced smart contract functionalities and decentralized applications on the Bitcoin network.