4.3 SatoshiChain Design

As shown above, the Bitcoin blockchain and the SatoshiChain have a symbiotic relationship. In particular,

• Users can lock their Bitcoin on the cross-chain protocol to receive $SAT on the SatoshiChain blockchain.

• Users can use $SAT to deploy and interact with smart contracts, pay transaction fees, and participate in the governance of SatoshiChain.

• Users can destroy $SAT and reclaim their native Bitcoin.