Paper 2025/964 Original: eprint.iacr.org/2025/964 ↗

TOOP: A transfer of ownership protocol over Bitcoin

Abstract

We present the Transfer of Ownership Protocol (TOOP). TOOP solves a limitation of all existing BitVM-like protocols (and UTxO blockchains at large) that restricts the unlocking transfers to addresses known and preregistered during lock and setup. Accordingly, our protocol avoids the financially costly, regulatory problematic, and congestion-prone front-and-reimburse paradigm. Furthermore, we note that one of the main applications of TOOP is as an enabler of secure transfer of assets between UTxO blockchains, and back. We showcase this via sketching a committee-based validation protocol that requires only 1-out-of-n honest security. This protocol operates in distinct phases: the lock phase, where the initial setup and individual assets are locked on Bitcoin, and the unlocking with the ownership transfer phase, where the asset is transferred to a possibly different legitimate owner. This cross-chain bridge protocol, where TOOP plays a key role, is being formalized in concurrent work, and has been implemented for the first time in Cardinal, a protocol for wrapping Bitcoin Unspent Transaction Outputs (UTxOs) onto the Cardano blockchain, with Bitcoin Ordinals represented as Cardano Non-Fungible Tokens (NFTs).