Unified token standard aims to fix fragmented Bitcoin ecosystem

Bitcoin’s decentralized security attracts creators, but its limited programmability leads to fragmented asset standards and data constraints. This project provides a solution
Nihatcan Yanik
Posted by Nihatcan Yanik January 10, 2025 4 Mins Read
Bitcoin’s decentralized security attracts creators, but its limited programmability leads to fragmented asset standards and data constraints. This project provides a solution

Presented by Nubit

Nubit introduces Goldinals, a unified protocol for Bitcoin assets using BitVM, to unify asset creation and bring Turing-complete logic directly on Bitcoin.

Bitcoin’s (BTC) robust security and decentralized nature make it a top choice for many creators. However, its limited programmability can hold back projects seeking more complex features than mere value transfers.

Over time, different initiatives have tried to introduce asset standards on Bitcoin, but many end up requiring external services — often called indexers — to track balances and transactions, resulting in fragmented features and insufficient use of Bitcoin’s inherent reliability, increasing the appearance of security issues.

Compounding this issue is the emergence of incompatible standards that disrupt the cohesion of the ecosystem and limit interoperability for teams valuing Bitcoin’s strengths while requiring broader capabilities.

Nubit, an initiative founded by UCSB professor Yu Feng and backed by Polychain, steps in with a solution. Nubit aims to build a “trustless world computer for Bitcoin,” offering solutions that address limitations in programmability, data availability and asset creation.

The project has recently secured an $8 million seed funding round, bringing total funding to $12 million and supporting further development of its core technologies. These offerings are all building for a Bitcoin-native future, including a system intended to bring smart contract capabilities to the Bitcoin blockchain known as BitVM, a data availability (DA) framework called Nubit DA and a unified Bitcoin-based token standard called Goldinals.

A unified Bitcoin asset standard

Goldinals is a protocol designed to address the challenges of Bitcoin assets: not fully decentralized (secure), fragmented and not 100% on Bitcoin. It is a conception brought up by Domo, the creator of BRC-20, brought to life by Nubit.

At its core, Goldinals is a unified protocol for Bitcoin assets. Unlike existing protocols on Bitcoin, which rely on centralized indexers and create isolated ecosystems, Goldinals unifies Bitcoin’s asset landscape by enabling:

  • Full decentralization: No need for centralized indexers; every transaction is verifiable directly on the Bitcoin blockchain.
  • Programmability: Developers can define token features like supply limits or transfer conditions directly on Bitcoin using smart contract-like logic.
  • Compatibility: Fully compatible with existing standards (BRC-20, Ordinals, CAT) while setting the stage for future innovations.

Goldinals ensures that Bitcoin assets are not only secure but also programmable, interoperable and transparent — solving Bitcoin’s ecosystem fragmentation.

Rather than relying on centralized indexers to track balances, Goldinals uses onchain validation supported by zero-knowledge (ZK) proofs.

ZK-proofs are a cryptographic method that lets a system prove the correctness of data without exposing all of its details — think of it like confirming someone has the right code for a lock without revealing the code itself.

With this feature, Goldinals identifies invalid transactions on the Bitcoin network, reducing the need for third-party verification. This setup supports various asset types, including stablecoins, real-world assets (RWAs) and crowd sales, while adhering to Bitcoin’s decentralized ethos.

For developers, Goldinals also offers programmability that allows defining token features — such as supply limits or access controls — through an onchain process that remains trust-minimized. Readers interested in technical specifications can refer to the Goldinals documentation.

Bringing Turing-complete logic to Bitcoin

To power the advanced features in Goldinals and other applications, Nubit keeps building on BitVM, a system intended to bring smart contract capabilities to the Bitcoin blockchain that enables developers to run complex, Turing-complete programs on Bitcoin without sacrificing security. In simpler terms, a Turing-complete system can handle almost any logic developers might require — loops, conditions and other features often found in traditional programming languages.

BitVM keeps Bitcoin’s main network secure by moving most of the heavy computation offchain and submitting proofs back onchain through ZK-proofs. As a result, Bitcoin can validate the correctness of complex operations without being overloaded by them.

Nubit is also building a special compiler to translate user-friendly code into optimized scripts for Bitcoin, alongside formal verification to mathematically check each program’s integrity.

“Bitcoin needs real programmability, not duct-taped chaos,” said Nubit co-founder Hanzhi, continuing:

“With strong foundations and standards, the ecosystem will shift from chaos to interoperable, positive-sum innovation.”

At each stage, Nubit’s vision remains the same: to expand what Bitcoin can do while preserving the qualities that made it a mainstay of the blockchain landscape in the first place. By unifying assets and programmability on Bitcoin, Goldinals pave the way for a more interconnected and resilient blockchain ecosystem.

Learn more about Nubit

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