+-------------------------------------------------------------+
| Bitcoin Blockchain |
+-------------------------------------------------------------+
/$$$$$ /$$$$$$ /$$ /$$ /$$$$$$$$ /$$$$$$$
|__ $$ /$$__ $$| $$ /$$/| $$_____/| $$__ $$
| $$| $$ \ $$| $$ /$$/ | $$ | $$ \ $$
| $$| $$ | $$| $$$$$/ | $$$$$ | $$$$$$$/
/$$ | $$| $$ | $$| $$ $$ | $$__/ | $$__ $$
| $$ | $$| $$ | $$| $$\ $$ | $$ | $$ \ $$
| $$$$$$/| $$$$$$/| $$ \ $$| $$$$$$$$| $$ | $$
\______/ \______/ |__/ \__/|________/|__/ |__/
|
V
+-------------------------------------------------------------+
| Genesis Transaction (P2SH) |
+-------------------------------------------------------------+
| - Locks initial funding UTXO |
| - Deploys minting rules and script for validation |
| - Creates genesis UTXO for future minting |
+-------------------------------------------------------------+
|
|
V
+-------------------------------------------------------------+
| Minting Transactions (P2SH) |
+-------------------------------------------------------------+
| - Validates user request with provided minting data |
| - Ensures supply does not exceed max limit |
| - Creates child minting UTXOs for parallel minting |
| (Concurrency management using multiple UTXOs) |
+-------------------------------------------------------------+
| |
| |
V V
+--------------------------+ +--------------------------+
| Minting UTXO (child) 1 | | Minting UTXO (child) 2 |
| - Tokens minted: X | | - Tokens minted: Y |
| - Linked to genesis UTXO | | - Linked to genesis UTXO |
+--------------------------+ +--------------------------+
| |
| |
V V
+-------------------------------------------------------------+
| Transfer Transactions (P2SH) |
+-------------------------------------------------------------+
| - Validates user balance and minting conditions |
| - Ensures no double spending |
| - Creates new UTXO for the receiving user |
+-------------------------------------------------------------+
| |
V V
+--------------------------+ +--------------------------+
| Transfer UTXO (to user A)| | Transfer UTXO (to user B)|
| - Tokens transferred: X | | - Tokens transferred: Y |
| - Linked to minting UTXO | | - Linked to minting UTXO |
+--------------------------+ +--------------------------+
+-------------------------------------------------------------+
| State Register |
+-------------------------------------------------------------+
| - Tracks total token supply |
| - Monitors all UTXOs linked to genesis transaction |
| - Ensures no excess minting or double spending |
+-------------------------------------------------------------+
+-------------------------------------------------------------+
| Functional Flow for Token System |
+-------------------------------------------------------------+
| 1. Genesis Transaction (Deployment) |
| - A P2SH script is deployed by the contract owner |
| - The genesis transaction creates an initial UTXO that |
| governs all minting |
| - The script includes the rules for minting and |
| validation logic |
| |
| 2. Minting Transactions |
| - Users submit minting requests with the required data |
| - The script checks if the current supply is within |
| the maximum supply limit |
| - If valid, a minting UTXO is created for the user, |
| allowing parallel minting (concurrency via multiple |
| child UTXOs) |
| |
| 3. Transfer Transactions |
| - Users transfer tokens by submitting a transfer request |
| - The script verifies balance and ownership |
| - Once verified, tokens are transferred, and a new UTXO |
| is created for the receiver |
| |
| 4. State Register |
| - The state register tracks the total supply and all |
| active UTXOs, preventing double minting or spending |
+-------------------------------------------------------------+
+-------------------------------------------------------------+
| Wallet Generation (P2PKH) and P2SH Logic |
+-------------------------------------------------------------+
| - The deployer generates a P2PKH wallet for managing funds |
| - The P2PKH address is locked into the P2SH contract |
| - The deployer controls the genesis transaction and minting |
+-------------------------------------------------------------+