TL;DR
With the launch of ORDI on Binance, the inscription track of the Bitcoin ecosystem is developing rapidly, with a variety of innovative technologies and concepts emerging. SegWit and Taproot upgrades provide strong support for Bitcoin’s programmability and scalability, driving the rise of projects such as Ordinals, BRC-20, and Atomics. These technological advancements not only increase the transaction capacity and flexibility of the Bitcoin network, but also create more revenue sources for miners.
introduction
With ORDI listed on the Binance exchange, we have witnessed the beginning of a new era: a technological innovation and market prosperity led by the Bitcoin ecosystem. From the inscription craze at the beginning of the year to the renewed craze today, the rapid development of the Bitcoin ecosystem and the huge increase in its value have attracted widespread attention. But behind all this, what drives the enthusiasm of the BTC ecosystem and the rapid expansion of its value?
technology
Before exploring this issue, we first need to understand several key technological advances in the Bitcoin ecosystem.
Segregated Witness (SegWit) is a key upgrade to the Bitcoin Core protocol launched in 2017 to address Bitcoin scaling challenges and specific vulnerabilities. It primarily facilitates the inclusion of more transactions by correcting transaction malleability issues and expanding Bitcoin block size limits. SegWit introduces the concept of block weight, replacing the traditional block size limit, so that a fully loaded block can accommodate approximately 2,700 transactions, a significant increase compared to the previous 1,650 transactions.
Additionally, SegWit brings a new encoding method, Bech 32, and two innovative script types.
With the Taproot upgrade at the end of 2021, the Bitcoin ecosystem began to support more complex scripts and data types, which brought huge progress to the programmability and scalability of BTC. This provides a key opportunity for the explosion of the Bitcoin ecosystem in 2023.
The Taproot upgrade mainly includes changing the transaction confirmation method and introducing the Schnorr signature algorithm. The introduction of Schnorr signatures offers many benefits, including better privacy protection especially in multi-signature wallets. It allows all private keys to be compiled together, making multi-signature transactions look like other transactions, thus improving privacy. Additionally, Schnorr signatures support batch confirmations, making transactions across the network cheaper and faster.
Taproot also brings the potential to create smart contracts to the Bitcoin network. While it may be more expensive and have limited functionality compared to platforms like Ethereum, its ability to enable smart contract interactions on Bitcoin, which is worth up to $700 billion, is huge and could push smart contract technology into the mainstream.
Miners interests
In terms of miner interests, recent data shows that the Bitcoin inscription market is experiencing an unprecedented boom with the rise of projects like Ordinals and Atomics. According to data from oklink chain master, the income of Bitcoin miners has increased significantly in the past three months, especially in November. The proportion of on-chain handling fee contribution increased from 2.4% on August 19 to 2.4% in November. 23.46% on the 16th. This growth was mainly driven by the introduction of Ordinals trading pairs. This shows that the development of the Bitcoin inscription market has significantly increased the proportion of miners’ fee income. It is expected that this ratio may reach 50% by the time of the Bitcoin production cut in April 2024.
Currently, as U.S. Bitcoin mines are operating at a loss most of the time and the semiconductor industry faces process bottlenecks, the competition for mining machine computing power is easing. As a result, miners may turn to Bitcoin Inscription as a new source of income. For example, less than a year after the launch of Ordinals, more than 50,000 tokens have been issued in the market, and the number of mint and transactions has grown rapidly, which has greatly contributed to the increase in miner fee income.
The expansion of the Inscription Track not only drives the growth of miners’ income, but may also become the main driving force for the Bitcoin Inscription Track. However, miners are more concerned about the increase in the number of transactions than the fluctuations in the price of inscriptions.
The above factors work together to promote the rapid development of the Bitcoin Inscription track. But we must also realize that this development is not just a simple market craze, but represents deep-seated changes and technological progress in the Bitcoin ecosystem. As Bitcoin continues to demonstrate its strong potential in all aspects, we have reason to believe that the Bitcoin Inscription Track will become a key factor in promoting the development of the entire cryptocurrency industry.
Ordinals & BRC 20
The Ordinals project was launched by developer Casey Rodarmor in December 2022 and benefited from Bitcoins SegWit and Taproot upgrades, which improved the flexibility and functionality of Bitcoin scripts. Ordinals give each Satoshi a unique serial number and track them in transactions, allowing additional data to be attached. Ordinals allows users to inscribe data, such as images, text, audio, etc., on specific unspent transaction outputs (UTXO), realizing the concept of asset transfer. At the beginning of this year, Ordinals was officially launched, quickly igniting the BTC ecosystem.
The emergence of the Ordinals protocol, coupled with the adoption of Taproot, facilitates the encoding and writing of NFT data into Bitcoin blocks. NFT images are permanently engraved into BTC blocks in a way that is more decentralized than ETH NFTs and does not rely on third parties to view and transfer NFTs.
Ordinal number theory mainly focuses on the tracing of the smallest unit of Bitcoin, sat, by designing rules so that each sat has a unique number. Based on ordinal theory, on-chain data can be associated with sats to form inscriptions. Inscriptions are stored in the taproot script and are identified and displayed by off-chain index nodes. Due to the limitation of indexes and the inability to operate on the chain, the expansion of inscription functions relies on the development of ord, such as father and son inscriptions and curse inscription indexes. Inscriptions are similar to Colored Coin in that they store data in transactions for off-chain program indexing, but inscriptions are stored in the input Taproot script, while Colored Coin is stored in the output.
The implementation of Ordinals completely relies on the basic functions of BTC, and NFT transfers are completely processed by the BTC network. Due to its artistic attributes, Ordinals has limited development potential, but its emergence was still quickly adopted by the BTC fundamental community.
Initially, Ordinals was mainly used to create NFTs, but on March 8, 2023, anonymous developer Domo launched BRC-20 based on the Ordinals protocol, an ERC-20-like Bitcoin altcoin issuance protocol that defines a A json data packet in a specific format and engraved on the BTC chain through Ordinals. Deployers of BRC 20 can decide the total amount and name of the tokens themselves, on a first-come, first-served basis. $ORDI is the first BRC 20 token deployed by Domo.
BRC-20 further develops on the basis of inscriptions to achieve homogeneous tokens and writes the minting and transfer process of tokens into the BRC-20 indexer. However, BRC 20 requires the use of a third-party orderer to record the ledger off the BTC chain, which adds additional complexity and becomes a weak point in the system.
The transfer of BRC 20 is not executed on the BTC main chain and needs to be divided into two steps of BTC transactions (collection first and then transfer), resulting in a large number of junk transactions. Therefore, while BRC 20 is touted for its broad applicability and liquidity, it has been plagued by controversy due to a lack of support from the BTC core community. Recently, some developers have begun to develop decentralized sorters, such as #Trac, but this is still limited by the overall framework and it is difficult to achieve breakthroughs. The Inscription-Based Virtual Machines and Rollup concepts proposed by Domo, the founder of BRC-20, at the Ordinals Summit indicate that BRC-20 may move toward the development of a second-layer network.
With the introduction of BRC-20, the use of the Ordinals protocol expanded, but it also caused Caseys dissatisfaction. Casey’s team even asked Binance to remove the association with Ordinals from the ORDI token introduction to draw a clear line. This shows that although Ordinals and BRC-20 are both promoting the development of the BTC ecosystem, they have obvious differences in community acceptance and development direction.
Atomicals & ARC 20
Atomics is an optimization project for Ordinals and BRC 20. It focuses on homogeneous tokens and solves the problem of BRC 20’s over-reliance on centralized off-chain indexing. It utilizes and extends Bitcoins UTXO model, treating the UTXO of each Satoshi (the smallest unit of Bitcoin) as a specific Atomic token or digital object, thereby creating and managing complex digital objects and tokens on Bitcoin. System (ARC 20).
Key features of Atomics include:
Tokens are represented using satoshis as the base unit.
Allows the creation, transfer and updating of digital objects on Bitcoin.
Provides a decentralized and Bitcoin culturally compliant approach to tokenization.
Leverage Proof of Work (POW) to increase fairness and decentralization of the minting process.
Designed to expand the functionality of Bitcoin and support a wider range of applications.
Atomics fundamentally rethinks how tokens are issued on Bitcoin in a centralized, immutable, and fair manner. It uses Satoshi as the basic atom, and each Satoshis UTXO represents a Token. When validating an Atomics transaction, simply query the Bitcoin chain for the corresponding UTXO. The atomicity of ARC 20 tokens is consistent with the atomicity of Bitcoin itself, and its transfer calculations are handled entirely by the Bitcoin network.
Compared with BRC 20, ARC 20 transactions require significantly less third-party sequencers, making the system more decentralized. The composability of UTXO makes the ARC 20 token more programmable. For example, in theory, the exchange of BTC and ARC 20 only requires the exchange of UTXO input and output.
After the Atomics protocol was launched in September, the first token, ATOM, was quickly mined. Compared with BRC-20, ATOM’s mining process is more technically demanding and fair.
Atomics is minted and spread based on Bitcoins UTXO. 1 token is equal to 1 sat, which is technically more consistent with Bitcoin fundamentalism. The Atomics protocol already defines the ARC-20 token standard and other use cases.
The Atomics protocol is highly respected by the community and is considered a complete protocol. The ARC-20 token standard is minted and transmitted based on Bitcoins UTXO. Each unit of ARC-20 token is always supported by 1 sat, that is, 1 Token = 1 sat. All operations on ARC-20 tokens can be done relying on the Bitcoin network, with no additional steps required.
Atomics introduced POW in the ARC 20 minting process, where minters must calculate a hash of a specific prefix character in order to mint, which is a more decentralized and fair distribution method. The Atomics protocol provides Bitwork Mining prefix parameter settings for ARC-20, allowing participants to directly mine inscriptions/NFTs. The ARC-20 token standard remains true to Bitcoin fundamentalist principles, and the emergence of related tools in the future will enhance its liquidity.
In summary, Atomics, as a competitor of Ordinals, focuses on the decentralized creation and management of homogeneous tokens and digital objects. By extending the UTXO model of Bitcoin, it achieves a more decentralized and more consistent Bitcoin culture. Token system. With its technical advantages and design consistent with Bitcoin fundamentalism, the ARC-20 token standard is expected to gain support from the Bitcoin core community and bring wider application possibilities to the Bitcoin ecosystem.
Rune & PIPE
The RUNE protocol grew out of Ordinals founder Casey Rodarmor’s recognition of the shortcomings of existing fungible token schemes on the Bitcoin network, such as BRC 20 and Taproot Assets. Casey proposed the idea of a UTXO-based fungible token protocol that aims to address the limitations of these solutions.
The main features and design concepts of the RUNE protocol include:
Based on UTXO: Runes balance is stored in UTXO, and each UTXO can contain any number of Runes.
Transaction and protocol information: The output of a specific script is considered part of the protocol information and defines how Runes are transferred and distributed.
Flexibility: The transfer of Runes is implemented by interpreting the data push in the transaction, providing flexible allocation methods.
Release mechanism: The second data push is treated as a release transaction, allowing the creation of new Runes.
Simplicity and decentralization: The Runes protocol is as simple as possible, does not rely on off-chain data or native tokens, and adapts to Bitcoin’s UTXO model.
Symbol allocation: Runes can associate symbols, but the protocol does not involve symbol backing issues to maintain simplicity.
Although RUNE only existed in the conceptual design stage, BennyTheDev implemented the PIPE Protocol based on the technical architecture proposed by Casey. PIPE is an important part of the TRAC ecosystem, which also includes BRC 20 tokens $TRAC, Bitmap, and the OrdFi ecological protocol TAP Protocol developed by BennyTheDev for BRC 20, which allows BRC 20 to implement DeFi functions such as token exchange (Swap). .
BennyTheDev is an active Bitcoin community developer. He launched the BRC-20 auxiliary tool LooksOrdinal in March, deployed the TRAC token in May, released the Tap Protocol positioned on OrdFi in August, and launched the OrdFi-based Tap Protocol in October. An improved Pipe protocol based on Runes ideas.
The Pipe protocol follows Caseys RUNE protocol idea and uses UTXO-based technology to achieve homogeneous tokens. The release of the Pipe protocol attracted a lot of hype from BRC 20 and quickly completed the first round of hype. Although RUNE may face challenges in its acceptance in the Bitcoin community, its legitimacy is still stronger than BRC 20.
In general, the emergence of RUNE and PIPE protocols reflects the Bitcoin communitys continuous exploration and innovation in the implementation of homogeneous tokens. Although these protocols are still in their early stages, they are already showing potential and could bring more transaction fee revenue, developers, and users to the Bitcoin ecosystem.
Bitmap & BRC 420
Bitmap.land is the first Metaverse project in the Bitcoin ecosystem. It is based on Ordinals theory and Bitmap theory.
Ordinals theory numbers the smallest unit of Bitcoin, Satoshi, and defines the scarcity of Satoshi. This can be visualized as each Satoshi is a numbered box, whose scarcity is determined by the time of production, and can be used to load data.
Bitmap theory was proposed by Twitter user @blockamoto on June 13, 2023. This theory maps each transaction input in the Bitcoin block into a parcel (Parcel), forming a block or district (District). The difference in size of different transaction inputs results in different sizes of mapped plots.
Buyers of Bitmap.land were influenced by Decentraland and The Sandbox and adopted a method of dividing land and drawing patterns on the map, which is similar to the logic of buying land on these two platforms. Users gain ownership of specific Bitcoin blocks by inscribing data into Satoshi, similar to free minting.
On the Bitcoin blockchain, each block is divided into four parts to represent different halving cycles. Users can view the number and color of each block on the Bitmap.land website. Different colors represent different selling statuses.
The offering of Bitmap.land is closely related to ordinal theory, similar to the virtual land offering of Decentraland and The Sandbox, which relies on the ERC-721 standard. Ordinal theory is similar to the principle of early colored coins, but in the context of Bitcoin’s current narrative, consensus, ecology, and infrastructure, the two are different. While ordinal theory is not as innovative as ERC-721, BRC-20s approach is more original.
Bitmap theory adds a new interpretation to Bitcoin blocks, providing a topicality despite lacking practicality. It changes the connection between Bitcoin and the Metaverse, giving each block of the Bitcoin blockchain a new dimension and making it part of the Metaverse by allowing users to own and record individual blocks.
The bitmap theory attracted the attention of the Ordinals community and inspired the inscription craze. Any block on the Bitcoin blockchain can become part of the Metaverse through Bitmap, bringing new creation and ownership opportunities to the community.
Bitmap.land blurs the lines between Bitcoin and the Metaverse through bitmap theory, paving the way for ownership, creativity, and community development. As the inscription craze continues, it means huge potential for those looking to carve out a niche in the digital realm.
The BRC-420 protocol, with the total number of Ordinals inscriptions exceeding 40 million since November 13, 2023, has become one of the active token protocols in the Bitcoin ecosystem. Unlike traditional token protocols, BRC-420 focuses on on-chain inscription modularity, creating a new asset type on Bitcoin. Its first token, commonly known as “Blue Box,” has achieved significant market growth, growing from an initial $0.15 to $1,000, with developers generating significant on-chain royalty income in a short period of time.
The BRC-420 protocol is a Bitmap-based asset protocol that combines multiple inscriptions into a complex asset, creating a variety of assets ranging from small characters and pets to complete game scripts and virtual machines. Due to the open source nature of these assets on the chain, any client can run or verify them, fully embodying the Client Agnostic spirit of the full-chain game. Although RCSVs Bitmap browser dominates the market, there are opportunities for other teams to develop clients to run BRC-420s assets.
From a market perspective, the number of Bitmap Holder addresses has exceeded 25,000, surpassing Sandbox and becoming the Metaverse asset with the largest number of Holders in the entire chain. This achievement is due to its fair launch mechanism and the collective efforts of the more than 200 development teams surrounding Bitmap. BRC-420’s market capitalization has grown with the launch of the Bitmap browser and the protocol itself, and now stands at approximately $30 million.
RCSV, the project party of BRC-420, is actively promoting the full-chain game plan of the Bitcoin ecosystem. The plan emphasizes the assets, gameplay, logic and data on the entire chain, aiming to create a truly decentralized gaming ecosystem on the Bitcoin chain. For example, developers can use the fighting module on the BRC-420 to quickly develop and release new games while only paying royalties through the protocol.
RCSV also proposed an expansion plan for the Bitcoin network to solve the capacity limitations of the Bitcoin network when processing a large number of transactions. This solution aims to migrate assets from the first layer to the second layer and implement a complete virtual machine environment on the next layer of the Module. This arrangement aims to provide a low-fee, high-efficiency interactive environment for Bitcoins first-tier assets while ensuring security to the greatest extent.
Overall, the BRC-420 protocol and related Bitmap projects are sparking innovation and vitality in the Bitcoin ecosystem. By creating complex, modular digital assets, BRC-420 is enabling new economic opportunities and interactive experiences for creators, developers and users. With the continuous efforts of the RCSV team, the full-chain game and metaverse concepts of the Bitcoin ecosystem are gradually becoming a reality, showing the broad prospects of Bitcoin technology and applications.
BRC 100
BRC-100 is an extension protocol based on Ordinals theory, designed for implementing various decentralized applications on Bitcoin Layer 1. This protocol not only takes over the basic functions of brc-20 on Bitcoin, such as creation, minting and transactions, but also introduces the concept of decentralized computing. This means that based on the BRC-100 protocol stack, various decentralized applications such as DeFi, SocialFi and GameFi can be developed, bringing true decentralization, trustlessness, censorship resistance and permissionless to the first layer of Bitcoin. Application scenarios.
A major feature of the BRC-100 protocol is its interoperability, which not only allows all protocols and applications within its protocol stack to be compatible with each other, but also supports interoperability with BTC, BRC-20 or other layer 1 chains such as Ethereum and Stacks to interact with. In addition, the protocol also introduces the UTXO model and state machine model to enhance its security and computing capabilities.
The protocol also includes a series of innovative features, such as inheritance concepts, application nesting, address and application state, permission settings, and decentralized governance. For example, the inheritance concept introduced by BRC-100 allows protocols to directly or indirectly inherit features of BRC-100. At the application level, applications deployed based on BRC-100 and its extended protocols can be nested to form sub-applications. At the same time, the protocol also introduces two roles: owner and administrator, providing a foundation for decentralized governance of applications.
The utility of BRC-100 is reflected in its diverse application cases, from governance protocol BRC-101 to automated liquidity protocol BRC-102, as well as functions such as staking, airdrops, lending and stablecoin pools. These extended protocols allow BRC-100 to not only be limited to token transactions, but also support more complex financial operations and calculations.
Overall, the BRC-100 protocol opens up a new field of decentralized applications on the Bitcoin chain through its innovative features and powerful computing power. It not only inherits the advantages of brc-20, but also provides a framework for an open protocol, providing new possibilities for the future development of the Bitcoin ecosystem.
Taproot Assets & Nostr Assets
Taproot Assets is a protocol launched by the famous Lightning Labs to create and trade various digital assets on the Bitcoin network and integrate with the Lightning Network. The Lightning Network has gained widespread recognition from the Bitcoin community as a mature Bitcoin derivative protocol. The update of Taproot Assets expands the functionality of the Lightning Network from a simple peer-to-peer transaction payment channel to a peer-to-many model that enables asset distribution and circulation. The feature of Taproot Assets is that Token information is recorded in the UTXO output script of the Bitcoin main network as a registration, and functions such as transfer transactions are implemented in the lightning channel. The biggest difference from BRC 20 and ARC 20 is that Taproot Assets are released in a way that is pre-minted and then distributed by an owner, rather than free-minted.
Taproot Assets is backed by Lightning Labs and Twitter founder Jack Dorsey, who have extensive fundraising backgrounds, giving it an edge over other grassroots projects in terms of formality and community support.
NostrAssets is an open source protocol that introduces Taproot assets and Satoshis (Bitcoin units) to the Nostr ecosystem. Users can send and receive assets at the Nostr protocol layer using Nostr’s public and private keys. The settlement and security of assets rely on the Lightning Network, and the Nostr Asset Protocol itself does not issue assets, but only introduces assets to Nostr through the protocol.
Features of NostrAssets include seamless integration of Taproot assets and Bitcoin into the Nostr ecosystem, providing developers with tools to create innovative products, enriching the value of the Bitcoin and Lightning Network ecosystem, and enabling a seamless experience from chat to transaction. In the future, NostrAssets plans to import Taproot assets from other Daemon Universes, allowing for receiving and sending Taproot assets to and from Nostr.
NostrAssets’ vision is to drive users into the Bitcoin ecosystem and deliver Taproot assets to users around the world. By providing modular development tools, NostrAssets aims to facilitate the construction of decentralized applications that provide user-friendliness and commercial practicality.
On October 30, Nostr Assets conducted an airdrop to celebrate Halloween by issuing the first token on its platform, TRICKTREAT, to users who participated in its early missions. Currently, the value of these tokens has risen to approximately $2,000.
The total supply of these tokens is 210 million each, for a total of 420 million. The total amount of airdrops is approximately 80 million, accounting for approximately 20% of the total supply.
Nostr Assets also announced the upcoming launch of the Fair Mint feature and is looking for projects on Twitter that are interested in issuing assets for cooperation. This means that once the feature goes live, a large number of new assets are expected to appear on the protocol, potentially attracting widespread attention and participation from the community. This flurry of activity demonstrates that Nostr Assets is actively expanding its ecosystem and preparing for future growth.
Ethereum Inscription
Ethscriptions are an alternative smart contract and L2 protocol that allow users to share information and perform calculations at low cost on Ethereum L1. It enables decentralized computing by applying rules to Ethereum call data to bypass smart contract storage and execution. In August 2023, Ethscriptions introduced a virtual machine (ESC VM) to enhance its functionality and make it a general computing engine.
The founders of Ethscriptions are Middlemarch (a domo similar to BRC 20) and Michael Hirsch. Its first protocol token is $eths. As the current leading token, the early minting price was only about $0.5, and subsequently rose to about $3,000 in the market, bringing significant returns to investors. Although this result is not as good as $ORDI and $SATS of the BRC 20 track, it has shown significant growth compared to other inscribed tracks, establishing its position among the thousand-fold tracks.
In addition to $eths, there are other projects worthy of attention on the Ethscriptions track, such as Facetswap. Facet is a decentralized trading platform developed by Middlemarch and Michael Hirsch. It was originally named dumbswap and later renamed Facetswap. Although $Facet’s price and market cap are temporarily lagging behind $eths, its potential value may become more apparent after the mainnet goes live.
iERC 20 is a new Ethereum-based token protocol that provides a low-cost token ecosystem that allows anyone to deploy, mint, and trade tokens on it. $Ethi, the first token in the iERC 20 ecosystem, receives official support. This protocol not only provides Ethereum users with more choices, but also promotes the development of the inscription ecology on the Ethereum chain.
In the latest cryptocurrency development, the iERC 20 protocol and Binance-incubated GameFi project Sparkle have announced a partnership to introduce Inscription NFTs and other inscription assets on iERC 20, aiming to leverage the advantages of inscription to enhance gameplay in the GameFi ecosystem. The collaboration sparked widespread concern in the Ethereum community, specifically shifting the focus from ETHS to the iERC 20 protocol.
The uniqueness of the iERC 20 protocol is that it not only develops the Swap function, but also integrates the EVM cross-chain function, building a bridge between Ethereum Inscription and traditional Layer 2. This feature enables the protocol to introduce more mainstream coins and stable coins, thereby expanding the TVL of the Inscription ecosystem and providing more development possibilities for the entire system.
In addition, the iERC 20 protocol also plans to introduce a fair mining model of PoW and cooperate with other projects to launch new inscriptions, similar to the mining method of the Atom protocol. This strategy is expected to bring new impetus to the development of the Ethereum ecosystem.
Although $Ethi was launched around the same time as $ETHS, $Ethi initially did not gain fame as quickly as $ETHS due to its relatively low profile in its early stages. However, as the price of $ETHS increased and market attention increased, $Ethi also began to receive more and more attention. $Ethi’s divisible technology makes it more attractive to retail investors. Although the current market capitalization is still lower than $ETHS, its development potential cannot be ignored.
In the iERC 20 ecosystem, $Ethi is regarded as an important tool, similar to a shovel, providing special empowerment to its holders. For example, users holding $Ethi may receive inscription airdrops from collaborative projects, such as the recent one with Sparkle. In addition, the FOMO sentiment in the community is spreading, and many investors are optimistic about the future development potential of $Ethi, believing that it is the leading token officially recognized by iERC 20 and will increase in value with the launch of the PoW mechanism and the continued development of the Inscription ecosystem.
Overall, the ERC 20 track is showing its great potential and may create more miracles after BRC 20. With the addition of more high-quality projects and the development of the ecosystem, this field is expected to attract more users and innovation.
Other public chain inscriptions
As the wealth effects generated by Bitcoin Inscription spread to other public chains, various RC 20 tokens began to arouse heated discussions in the community, forming a FOMO phenomenon, including DOGE Inscription, BSC Inscription, Litecoin Inscription, and BASE Inscription. , Polygon inscriptions, Solana inscriptions, etc.
Especially on November 16, the Gas fee of the Polygon network rose sharply, reaching as high as 1800 gwei, due to the community’s discovery of POLS, the PRC-20 standard token deployed in May this year. according toevm.linkAccording to the data, the total circulation of POLS is 21 million.
Inspired by missing out on the Bitcoin inscription token SATS, community members began to play a few defenses. Compared with the high cost of BRC and ERC, POLS, which is simple to operate and low-cost, has quickly gained attention in the community. Users can accessevm.linkAnd pay less than 0.05 Matic to mint POLS.
The community also shared methods to mint POLS in batches through the batch collection function (which requires importing the wallet private key) or scripts. Polygon’s low gas fee is considered one of POLS’s advantages as an inscription token. If 21 million POLS are fully minted, Polygon could become the chain with the largest number of inscriptions of any EVM chain, including Ethereum. This is naturally reminiscent of the BRC inscription token SATS, which has attracted a lot of attention from the community due to its significant gains.
future opportunities
In March 2023, Galaxy Research and Mining predicted that the market value of the Ordinals market would reach US$5 billion by 2025. At that time, the number of inscriptions was only 260,000, but now the number of inscriptions has reached 33 million, in just half a year , an increase of 126 times, and the market value of Longyi ORDI has reached 400 million US dollars, and the market value of Longer SATS has also reached 300 million US dollars. It can be seen that the prediction of the entire inscription market is still far underestimated.
Different protocols are emerging on the Inscription Track, and the ones who benefit most are of course miners. According to Tokenview on-chain data monitoring, the single-day transaction fee of the Bitcoin network reached US$11.6 million, surpassing Ethereum for the first time since 2020. As Bitcoin is about to be halved, miners are in urgent need of finding supplementary income. The prosperity of Inscription Track not only brings benefits to miners, but also maintains the security of the Bitcoin network in disguise. The reduction in block incentives will also make miners increasingly rely on transaction fee income to pay for operating costs. In the long run, Bitcoin will definitely compete with multiple expansion plans in the future. The outbreak of this round of Inscription Track and the resulting high Transaction fees are the catalyst towards this future. Trading activity on BRC 20 is currently focused on OKX and Unisat. With the emergence of various other protocols, different trading markets have emerged for different protocols, such as Atomics Market for ARC 20. In the end, the emergence of the leading protocol will surely create a unique trading market, and the competition in the trading market is far from over. The wallet market is similar. Currently, the main wallet for BRC 20 is Unisat, but there are still different wallets on the market launched and connected to different inscription protocols.
As funds continue to pour into the inscription market, users are no longer satisfied with the hype of memes and begin to turn their attention to inscription-based applications. The BRC 420 mentioned in this article is a typical example. Unisat also brings innovation to BRC 20. Through BRC 20-Swap, users can exchange BRC 20 tokens as easily as AMM DEX. As the first product to improve the liquidity of the Ordinals ecosystem, it is expected to bring the potential of the Bitcoin DeFi ecosystem to Once released, more functions such as lending and derivatives may appear in the future. Recently, Unisat has also opened an API interface, which is very friendly to small developers and can call many functions, such as automatic batch scanning, monitoring inscriptions and automatic mint, which can generate a lot of tool projects.
ORC 20 returned on November 20 with the release of the Nirvana upgrade, improving the inscription format to support BTC DeFi integration, introducing stablecoin support, servicing issuers such as USDT and USDC, and more. Compared with BRC 20, ORC 20 is obviously more complex. The initial supply and maximum mintage can be changed, and the naming is no longer restricted by four-letter words. However, it is also considered by the community to be more centralized, and its upgradability is also considered by the community to violate the immutable spirit of the blockchain. It is worried about problems such as malicious additional issuance and rat warehouses by project parties.
Generally speaking, BRC 20 is the most original protocol and the first to be listed on exchanges. It has the strongest community consensus and its fair launch has left an excellent impression on users. With the listing of ORDI on Binance, it also means that all exchanges have begun to recognize and support the innovation of Inscription Track. Because it is technically difficult to support BRC 20 deposits and withdrawals and self-built indexes, it is expected that BRC 20 will still be listed first on the exchange in the future. Token. The BRC 20 token cannot always be a meme. The project team can choose an existing BRC 20 token with community consensus as a utility token, which not only avoids regulatory risks, but also obtains a ready-made community.
Summary and Outlook
The development of the Inscription track has shown significant vitality and innovation. The growth of this track is mainly due to the key technological advancements of Bitcoin such as SegWit, Bech 32 encoding, Taproot upgrades and Schnorr signatures. These technologies not only enhance the Bitcoin network transaction efficiency and scalability, and also increases its programmability. With the application of these technologies, the inscription market has experienced a rapid boom, not only attracting investors and users, but also promoting the development of diverse projects and protocols, such as Ordinals, BRC 20, and Atomics, among others.
The growth of this circuit has also had a positive impact on the interests of miners. With the rise of projects like Ordinals and Atomics, miners’ revenue streams have expanded, demonstrating the importance of Inscription Circuit to the Bitcoin network. In addition, inscription tracks have also begun to appear on other public chains, showing their broad potential and influence.
Looking to the future, Inscription Track is expected to continue to witness technological innovation and promote the realization of more complex functions. The market’s growth is expected to continue, bringing more investment and participation opportunities. At the same time, it is foreseeable that more innovative projects and protocols will emerge to further enrich the inscription ecology of Bitcoin and other public chains. Miner earnings are also likely to continue to grow, as Inscription Circuit provides new revenue opportunities.
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https://www.odaily.news/post/5188506
https://www.theblockbeats.info/news/47414
https://foresightnews.pro/article/detail/47273
https://www.panewslab.com/zh/articledetails/shlj600y.html
https://m.mytoken.io/news/454225
