Bitcoin STAMP protocol is a technique that involves embedding base64-formatted image data onto the Bitcoin blockchain using transaction outputs in a distinct manner. The main goal of this method is to ensure long-lasting and unchangeable storage by directly storing the data in the Bitcoin blockchain, preventing it from being removed from a full node.
How Bitcoin Stamp Works?
Bitcoin Stamps securely store images on the Bitcoin blockchain, ensuring their permanence and immutability. Rather than relying on external websites or servers, Bitcoin Stamps directly incorporate the image data into Bitcoin transactions.
To make a Bitcoin Stamp, an image is transformed into a unique format known as base64. This format enables the image to be expressed as a sequence of characters. The image string is then included in the details of a Bitcoin transaction and transmitted to the Bitcoin network via the Counterparty protocol.
Each Bitcoin Stamp is assigned a number according to the time of the transaction. This assists in arranging the Stamps in a chronological sequence. The initial Bitcoin Stamp represents the first transaction that includes a valid image string in its description. Transactions containing invalid image strings are not recognized as Bitcoin Stamps.
Bitcoin Stamps stand out from other digital collectibles as they are stored directly on the Bitcoin blockchain, specifically on unspent transaction outputs (UTXOs). This guarantees that the images are securely and permanently recorded on the blockchain.