Concept Introduction

In Open, essentially all tokens are associated with a Bitcoin UTXO (whether pre-existing or temporarily created). To transfer tokens, you must spend this UTXO. When spending this UTXO, the Bitcoin transaction must include a commitment to a message. This message contains Open's payment information, defining inputs, specifying which UTXO the tokens will be sent to, asset ID, quantity, the transaction spending the funds, and any additional data that needs to be attached.

Therefore, the core concept of Open is to use the Bitcoin blockchain only when necessary, leveraging proof-of-work and the decentralized nature of the network to achieve double-spending protection and resistance to censorship. The validation work for all token transfers is removed from the global consensus layer and placed off-chain, verified solely by the client of the party receiving the payment. This approach enhances efficiency by minimizing the need for on-chain validation while still benefiting from the security features provided by the Bitcoin blockchain.