Intro

Blox is the first UTXO-based protocol focused on the Digital Matter Theory concept, enabling the use and tokenization of data on a UTXO blockchain natively. Blox aims for minimalism, using as little data as possible and leveraging the best methods available on UTXO protocols to compress data and achieve reasonable minting fees, even during high-fee periods.

Its first release is on Bitcoin, as an extended version of the Pipe protocol. Acting as a module, it integrates with the Pipe protocol's indexer to add an extra layer of indexing while maintaining the same performance. The UTXO model significantly reduces token transfer costs and offers greater flexibility for more use cases. In its first version, Blox indexes the transaction history of each block and calculates the total virtual size of each.

This virtual size is then tokenized and linked to the corresponding block. Users with the correct data can then mint the token to claim virtual ownership on the protocol. Each token corresponds to a vbyte, the unit of size measurement on Bitcoin – the more tokens it has, the larger the block's size.

For example, let's consider block X with a virtual size of 5400 vbytes. After the protocol validates the data structure:

TOKEN NAME: XXXXX (linked to X) SUPPLY: 5400

Blox will enable the creation of an ecosystem of use cases around data. Indexers will be open source and include tools for easy data utilization.

For the first Blox experiment, we've created the concept of block on the Pipe protocol, which we call PIPEBLOCK.