Deposits

For L1 → L2 deposits (priority operations), the user cannot simply send a transaction to the Sequencer’s mempool. Instead, the deposit process requires:

• Option 1: The user inscribes a message on Bitcoin that includes the intended L2 recipient address, along with sending the desired amount of BTC to a designated bridge address.

• Option 2: The user utilizes an OP_RETURN output to encode the L2 recipient address, along with sending the desired amount of BTC to a designated bridge address.

Once the deposit transaction is confirmed, the VIA Inscription Indexer component within the Sequencer detects the deposit, constructs a priority transaction, and places it in the Sequencer’s mempool. The execution and validation of these priority transactions proceed similarly to normal transactions, with the addition of minting the corresponding amount of BTC on L2 to the L2 recipient and the requirement that the Verifier Network validates the legitimacy of these priority transactions during the L1 batch validation process.