Scalability Assurance

In this design, Bitcoin's UTXOs act as one-time containers for holding Open assets. To transfer assets, you simply open the old container and close the new one.

The specific payment information for Open tokens is transmitted off-chain through dedicated communication channels, from the payer's client to the receiver's client, and verified by the latter to ensure compliance with the rules of the Open protocol. This way, blockchain observers cannot gain any information about Open user activities.

However, validating the received payment information alone is not sufficient to ensure that the sender truly owns the assets they intend to send to you. Therefore, to guarantee the finality of the received transaction, you must also receive the entire transaction history of these tokens from the payer, tracing back from the current one to its initial issuance. By verifying the complete transaction history, you can ensure that these assets have not been inflated, and all spending conditions attached to the assets have been satisfied.

This design is beneficial for scalability because you don't need to validate the entire history of these assets; you only need to verify the relevant portion that concerns you. Additionally, the design, which avoids broadcasting transactions to the global ledger, enhances privacy by limiting the number of individuals aware of your transactions. This combination of selective verification and reduced visibility contributes to both scalability and privacy in the Open protocol.