Written by Torram Labs CTO Lee Raj.
Innovation in Bitcoin development has often taken a conservative and security-first approach, favoring robustness over rapid experimentation. Yet with the introduction of Taproot, Bitcoin opened the door to new capabilities—especially in the realm of smart scripting. One of the most promising innovations emerging from this is TSB tokens (Taproot Script-Path-Based tokens), a groundbreaking way to implement tokens natively on Bitcoin’s Layer 1, without compromising privacy, decentralization, or trustlessness.
TSB tokens aren’t just another token model—they represent a paradigm shift in how Bitcoin can handle programmability and asset issuance without sidechains, rollups, or OP_RETURN-based hacks. By fully embracing Taproot’s script-path spending, TSB introduces a token standard (TSB-P) that’s privacy-preserving, verifiable on-chain, and requires no external data dependencies.
🔖 What Are TSB Tokens?
TSB tokens are defined by the TSB-P (Token Standard for Bitcoin – Programmable) protocol, which uses Taproot’s advanced scripting capabilities to encode token data directly into script-paths. When a Taproot output is spent, the corresponding script-path is revealed—this is where the token’s metadata lives.
Unlike earlier token attempts that rely on centralized indexers, OP_RETURN outputs, or Layer 2 solutions, TSB tokens stay true to Bitcoin’s ethos: decentralized, minimal, and secure.
✅ Benefits & Features of TSB Tokens
1. Native Layer 1 Integration
TSB tokens are embedded directly into Taproot outputs, with no reliance on second-layer protocols, sidechains, or alternative blockchains.
2. Privacy-Preserving by Default
Because token data is hidden in script-paths, it remains concealed until spending. This protects users from unwanted exposure of holdings or token interactions.
3. Full Programmability
Taproot’s Merkle tree of scripts enables advanced token logic, such as multi-condition minting, time-locked issuance, or programmable constraints—all encoded in the script-paths.
4. Proof-of-Existence Metadata
Timestamping and optional payloads allow tokens to anchor real-world data (e.g., certifications, digital art, documents) directly on Bitcoin.
5. Stateless, Trustless Verification
Anyone can validate a TSB token transaction simply by inspecting the blockchain—no centralized indexers, no oracles, no trusted intermediaries.
🛠️ Under the Hood: Technical Components of TSB
TSB tokens are made possible by Taproot’s flexibility. Here’s how it works at a technical level:
1. Taproot Script-Path Spends
Taproot outputs allow two spending paths:
• Key-Path: Single public key authorization (used for standard transactions).
• Script-Path: Spending via one of several scripts stored in a Merkle tree.
TSB tokens leverage script-path only, embedding token metadata directly into the spending condition. When the output is spent, the script is revealed—this is the moment the token data becomes public and verifiable.
2. Data Encoding in Script-Paths
Token data is encoded using opcodes like OP_PUSH followed by specific byte patterns. For example:
• Token ID: Derived from the Taproot address and token-specific metadata.
• Supply: Fixed-length field denoting total token issuance.
• Ticker/Name: Short byte fields (e.g., 8 bytes for ticker).
• Decimals & Timestamp: Metadata and proof-of-existence for time anchoring.
• Optional Payloads: Description, links, or additional data can be encoded if desired.
3. Stateless Verification Logic
Since everything is embedded on-chain:
• Anyone running a Bitcoin node can validate token data.
• The TSB-P format provides a standard template for interpreting scripts.
• No need for trusted indexing servers or specialized infrastructure.
This minimalistic, on-chain-only design mirrors the core philosophy of Bitcoin—don’t trust, verify.
💬 Join the Movement: Community, Wallets, and BIP Support
A draft Bitcoin Improvement Proposal (BIP) has already been submitted to introduce TSB tokens formally into the Bitcoin development ecosystem. This BIP outlines how wallets can recognize and display TSB tokens in a consistent and secure manner.
We invite the community to get involved:
• Wallet Developers: Implement TSB-P parsing to enable token visibility and transaction signing.
• DEX Builders: Explore how to support TSB tokens in decentralized exchange mechanisms.
• Bitcoin Developers: Review and contribute to the TSB-P BIP and protocol evolution.
🚀 Final Thoughts
TSB tokens redefine what’s possible on Bitcoin—without altering its core. By building entirely on Taproot script-paths, TSB offers a trustless, private, and programmable token layer that doesn’t compromise on decentralization.
Bitcoin is evolving—and it’s doing so from within.
Get involved. Build wallets. Create tools. Push the BIP forward. If you are interested in contributing to TSB, please reach out through the Torram Builders Group on Telegram – @torrambuilders
Let’s unlock Bitcoin’s full potential—one script-path at a time.
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