Most of you are not aware yet, but Arkade from nostr:nprofile1qy8hwumn8ghj76rfwpehgu3wvdaqzrthwden5te0dehhxtnvdakqqg96dyzxdu3l4gufz4cvpguws8g2n7z200x8jeedr8g6hvhuzy2k7q45pl3m already supports executing any Bitcoin Tapscript offchain you can think of.

Same Bitcoin L1 constructions, not constrained by block space or waiting for the next block anymore.

Concrete examples? Lendsat offers Bitcoin-backed loans with a simple escrow contract. Boltz allows you to move BTC between layers with a Hash Time Locked contract. Many other use cases coming soon.

All of this is composable with the Lightning Network out of the box. Scan a QR code, pay with your favorite LN wallet, execute the VTXO contract offchain and pull it back.

VTXOs (Virtual Transaction Outputs) are self-custodial offchain representations of Bitcoin UTXOs. Backed by presigned Bitcoin transactions that can be published to the blockchain unilaterally. You always retain the ability to exit without cooperation.

The Arkade executes transactions by co-signing, providing instant preconfirmation. The server never holds custody. This is enforced by the protocol: every VTXO includes both a collaborative path (fast, requires server) and a unilateral path (slower, independent of server).

You get instant execution without giving up control.

An escrow with three spending paths using standard Bitcoin Tapscript. Path one requires buyer and seller signatures. Path two allows an arbiter to resolve disputes. Path three refunds to the buyer after 30 days using CHECKLOCKTIMEVERIFY.

This produces a standard Bitcoin address. Spending requires satisfying one of the three script paths. Taproot makes this efficient by only revealing the path actually used.

The scripting capability exists today on Bitcoin. The constraint was always execution speed, not capability.

HTLCs enable atomic swaps. Two parties lock funds in interlocked contracts gated by hash preimages. Revealing the preimage to claim one side automatically enables claiming the other. The swap completes atomically or not at all.

The collaborative path requires the preimage, receiver signature, and server signature. The script uses HASH160 and EQUALVERIFY to verify the preimage, then CHECKSIGVERIFY and CHECKSIG for the signatures.

The unilateral path adds a relative timelock using CHECKSEQUENCEVERIFY. After the exit delay expires, the receiver can claim with just the preimage and their signature.

Boltz uses this pattern for Lightning swaps. Same Bitcoin opcodes, executed offchain at Virtual Mempool speed.

Bitcoin's Tapscript can express multi-path conditions today. The challenge has been execution speed, not scripting capability.

Blocks arrive approximately every ten minutes. Fee markets introduce unpredictability. For applications requiring multiple sequential operations, these delays compound. Bitcoin Script lacks the ability to maintain state continuity between transactions. Each transaction executes independently.

Escrow patterns that are theoretically expressible in Tapscript become impractical to deploy on the base layer. The script is capable. The execution environment doesn't match.

Arkade's Virtual Mempool executes the same Tapscript logic offchain while preserving the ability to settle to Bitcoin at any time. The script remains native Bitcoin Tapscript. The execution environment now supports the speed and composability that complex contracts require.

This opens up applications that were always possible in theory but impractical in execution. Atomic swaps. Bidirectional payment channels. Discreet Log Contracts. Lending collateral with health monitoring. Oracle-gated settlements.

Each application is an escrow composition with domain-specific parameters. The underlying mechanics remain consistent.

Don't listen to those that say "You cannot do anything with bitcoins"

Bitcoin is coming back.

Contracts Docs: https://docs.arkadeos.com/contracts

→ Building Bitcoin apps? Reach out about builder programs: partnership@arklabs.xyz