# Sparkle Protocol Status

**Status:** v1.0.0 Production Ready
**Last Updated:** November 2025
**Version:** 1.0.0
**Author:** David A. Michael

---

## Overview

Sparkle Protocol is a **production-ready standard** for Bitcoin Ordinals with Lightning Network atomic swaps. The specification includes working implementations for trustless ordinal trading.

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## Current Status: v1.0.0 Production Ready

### Working Implementations

- **Sparkle Swap** - Trustless Taproot hashlock atomic swaps for ordinal trading
- **Sparkle Indexer** - Protocol-aware inscription indexer with trait composition
- **Sparkle Coordinator** - Non-custodial trade facilitation service
- **Batch Inscriber** - Production-tested 10K NFT inscription pipeline

### Technical Innovation

Sparkle Protocol introduces the first trustless atomic swap mechanism for Bitcoin Ordinals:

```
Buyer Leaf:  OP_SHA256 <hash> OP_EQUALVERIFY <buyer_pubkey> OP_CHECKSIG
Seller Leaf: <locktime> OP_CLTV OP_DROP <seller_pubkey> OP_CHECKSIG
```

- Lightning payment reveals preimage that unlocks on-chain ordinal claim
- CLTV timelock protects sellers - reclaim ordinal if buyer never pays
- Non-custodial coordinator facilitates but cannot steal funds
- Atomic: Both parties satisfied or nothing happens

---

## Proof of Concept: DARKITA Collection

- **10,000 NFTs** inscribed using Sparkle Protocol recursive inscriptions
- **200 parent traits** with z_order layering (BACKGROUND, BODY, NECK, MOUTH, EYES, EARS)
- **99% cost reduction** verified ($150,000 → $1,900 for 10K collection)
- **Metaprotocol field** `"p": "sparkle"` for indexer discovery

---

## Appropriate Use Cases

### Production Ready For

- **NFT Collections** using recursive parent-child inscriptions
- **Ordinal Trading** with Lightning atomic swaps
- **Protocol Indexing** for Sparkle-enabled inscriptions
- **Cost Optimization** through trait deduplication

### Architecture

- **Recursive Inscriptions** - Parent traits inscribed once, referenced by children
- **Atomic Swaps** - Taproot hashlock scripts link Lightning payment to ordinal transfer
- **Non-Custodial** - Coordinator cannot steal funds, only facilitate
- **Open Source** - All implementations MIT licensed

---

## Security Model

### Cryptographic Guarantees

- **Hashlock** - SHA256 preimage links Lightning HTLC to on-chain claim
- **Timelock** - CLTV ensures seller can reclaim if buyer fails to pay
- **Atomic** - Either both parties get what they want, or neither transaction completes
- **Non-Custodial** - Coordinator never holds keys or preimages

### Trust Assumptions

- Coordinator can censor (refuse to match trades) but cannot steal
- Run your own coordinator to eliminate censorship risk
- Standard Bitcoin security model applies (6+ confirmations recommended)

---

## Specification Details

### Version: 1.0.0

- **Status:** Production ready
- **JSON Schema:** Finalized
- **Taproot Scripts:** Tested and working
- **Coordinator API:** Documented and implemented

### Metaprotocol Format

```json
{
  "p": "sparkle",
  "op": "nft",
  "v": "1.0.0",
  "collection_ref": "<genesis_inscription_id>",
  "token": { "id": 1234, "name": "Darkita #1234" },
  "traits": [
    { "inscription_id": "<trait_id>", "z_order": 0, "type": "BACKGROUND" },
    { "inscription_id": "<trait_id>", "z_order": 1, "type": "BODY" }
  ]
}
```

---

## Implementation Quality

### Production Code

- **Sparkle Swap** - Core Taproot script construction with bitcoinjs-lib
- **Sparkle Coordinator** - Express.js with SQLite, WebSocket real-time updates
- **Sparkle Indexer** - Protocol-aware inscription discovery and trait composition
- **Batch Inscriber** - PowerShell/Bash scripts for 10K collection inscription

### Testing

- Full regtest environment tested
- 10,000 DARKITA NFTs inscribed successfully
- Atomic swap flow validated

---

## Ecosystem

### Available Tools

- **Sparkle Swap** - Trustless ordinal trading
- **Sparkle Indexer** - Collection discovery and browsing
- **Sparkle Coordinator** - Trade facilitation API
- **Batch Inscriber** - Collection deployment

### Integration

- Compatible with standard ord indexer
- Works with any Lightning node (LND, Core Lightning)
- Marketplace integration via coordinator API

---

## Questions and Contributions

- **Questions:** [GitHub Issues](https://github.com/SparkleProtocol/sparkle-protocol/issues)
- **Contributions:** Pull requests welcome
- **Documentation:** Full specification at sparkleprotocol.com

---

## Summary

**Sparkle Protocol v1.0.0 is production ready for Bitcoin Ordinals with Lightning atomic swaps.**

- **Working implementations** - Swap, Indexer, Coordinator
- **Proven** - 10K DARKITA collection inscribed
- **Trustless** - Taproot hashlock atomic swaps
- **Open source** - MIT licensed

For technical details, see [PROTOCOL_SPEC.md](./PROTOCOL_SPEC.md).