MT Capital Research: Full Scan of the Inscription Sector

TL;DR

With ORDI launching on Binance, the inscription sector of the Bitcoin ecosystem is rapidly evolving, with a wide range of innovative technologies and concepts emerging.The SegWit and Taproot upgrades have provided strong support for Bitcoin’s programmability and scalability, fuelling the rise of projects such as Ordinals, BRC-20, and Atomicals. These technological advances have not only increased the transaction capacity and flexibility of the Bitcoin network, but have also created additional revenue streams for miners.

Introduction

With the ORDI launched the Binance Exchange, we have witnessed the beginning of a new era: a technological innovation and market prosperity led by Bitcoin ecological. From the inscriptions at the beginning of the year to the frenzy again, the rapid development of the Bitcoin ecosystem and the huge growth of its value have aroused widespread attention. But behind this, what is the promotion of the fiery and rapid expansion of the BTC ecology?

Technology

Before exploring this issue, we first need to understand several key technological progress of the Bitcoin ecosystem.

SEGWIT is a key upgrade of the Bitcoin core protocol launched in 2017, which aims to solve Bitcoin’s expansion challenges and specific vulnerabilities. It mainly promotes more transactions through correction transaction extensibility issues and expanding the size of Bitcoin block. Segwit introduces the concept of block weight, replacing the traditional block size limit, making the full -load block that can accommodate about 2,700 transactions, which is significantly improved compared to the previous 1650.

In addition, SEGWIT also brings new encoding methods Bech32 and two innovative script types.

By the end of 2021, the Taproot upgrade, the Bitcoin ecosystem began to support more complex scripts and data types, bringing great progress to the programming and scalability of BTC. This provides a key opportunity for the Big Big Blast of Bitcoin Ecology in 2023.

The Taproot upgrade mainly includes changing the transaction confirmation method and the introduction of the Schnorr signature algorithm. The introduction of Schnorr’s signature provides many benefits, including better privacy protection, especially in multiple signature wallets. It allows all private keys to compile together, so that multiple signature transactions look the same as other transactions, thereby improving privacy. In addition, Schnorr’s signature supports batch confirmation, making the transaction of the entire network cheaper and faster.

Taproot also brings the potential for creating smart contracts to the Bitcoin network. Although it may be more expensive and limited compared to platforms such as Ethereum, it is huge to achieve smart contract interaction on Bitcoin, worth 700 billion U.S. dollars, and may promote the mainstream of smart contract technology.

Interests of Miners

In terms of the interests of miners, recent data shows that with the rise of projects like Ordinals and Atomicals, the Bitcoin inscription market is undergoing an unprecedented prosperity. According to the data on the Oklink Chain, in the past three months, the income of Bitcoin miners has increased significantly, especially in November, the proportion of contributions totransaction fee on the chain rose from 2.4% on August 19 to November 19 23.46% on the 16th. This growth is mainly due to the introduction of the Ordinals transaction. This shows that the development of the Bitcoin inscription market has significantly increased the proportion of miners’ fee income. This proportion may reach 50%when Bitcoin production is reduced in April 2024.

At present, as the US Bitcoin mine is in a state of losses most of the time, and the semiconductor industry is facing process bottlenecks, the competition of mining machine computing power has eased. Therefore, miners may turn to the Bitcoin inscription as a new source of income. For example, for less than a year of ORDINALS, the market has more than 50,000 token issuance, and the number of MINT and transactions has grown rapidly, which has greatly promoted the increase in the income of miners’ fees.

The expansion of the inscription sector has not only promoted the growth of miners’ income, but also may become the main driving force for the Bitcoin inscription sector. However, the miners are more concerned about the increase in the number of transactions, not the fluctuation of the price of the inscription.

The common role of these factors has promoted the rapid development of the Bitcoin inscription sector. But we must also realize that this development is not just a simple market boom, it represents the deep -seated changes and technological progress of the Bitcoin ecosystem. As Bitcoin continues to show its powerful potential in all aspects, we have reason to believe that the Bitcoin Inscription sector will become a key factor to promote the development of the entire cryptocurrency industry.

Ordinals & BRC20

The Ordinals project was initiated by developer Casey Rodarmor in December 2022. Thanks to Bitcoin’s SEGWIT and Taproot upgrades, it improved the flexibility and functionality of Bitcoin script. Ordinals gives each Satoshi unique sequence number and tracks them in the transaction to allow additional data. Ordinals enables users to engrave data (UTXO) , such as images, texts, audio, etc., to realize the concept of asset transfer. Earlier this year, Ordinals officially launched, quickly lit the BTC ecosystem.

The emergence of the Ordinals protocol is complementary with the adoption of Taproot, which promotes the encoding and writing of the NFT data into the Bitcoin block. NFT images are permanently engraved into the BTC block. This method is more decentralized than ETH NFT. It can view and transfer NFT without relying on third parties.

The order theory mainly focuses on the traceability of the smallest unit SAT in Bitcoin. Through design rules, each SAT has a unique number. Based on ordinal theory, the data on the chain can be associated with SATS to form an inscription. The inscription is stored in the Taproot script, which is recognized and displayed by the index node under the chain. Due to the limitations of indexes, it is impossible to operate on the chain. The expansion of the inscription function depends on the development of ORD, such as the inscriptions of the father and the son and the cursing inscription index. The inscription is similar to Colored Coin. They all indicate the data to index under the transaction chain, but the inscription is stored in the input Taproot script, and the Colored Coin is stored in the output.

The implementation of Ordinals rely entirely on the basic function of BTC, and NFT’s transfer is completely processed by the BTC network. Due to its artistic attributes, the development potential of Ordinals is limited, but its emergence is still quickly adopted by the BTC original convention community.

Initially, Ordinals was mainly used to create NFT, but on March 8, 2023, anonymous developer Domo launched a BRC-20 based on the Ordinals protocol. The JSON packet in a specific format is carved on the BTC chain via Ordinals. The deployee of the BRC20 can determine the total amount and name of the token by themselves, and follow the first-come-first-served basis. $ Ordi is the first BRC20 token deployed by DOMO.

The BRC-20 is further developed on the basis of the inscription, realizing fungible tokens, and writing to the BRC-20 indexer of the foundation and transfer of tokens. However, the BRC20 needs to use a third -party indexer to record the ledger under the BTC chain, which increases the additional complexity and becomes the weakness of the system.

The transfer of the BRC20 is not performed on the BTC’s main chain. It needs to be divided into two -step BTC transactions (collecting and re -transfer first), which produces a large amount of junk transactions. Therefore, although the BRC20 is sought after because of its extensive applicability and liquidity, it is controversial due to the lack of support from the BTC core community. Recently, some developers have begun to develop decentralized indexers, such as #TRAC, but this is still limited by the overall framework and it is difficult to achieve breakthroughs. The founder of the BRC-20 founder Domo on Ordinals Summit Invasid-Based Virtual Machines and Rollup concepts indicate that the BRC-20 may move towards the development of the second layer.

With the launch of the BRC-20, the use range of the Ordinals protocol has expanded, but it also aroused dissatisfaction with Casey. The Casey team even required Binance to delete the association with Ordinals from the ORDI token introduction to draw a clear boundary. This shows that although both Ordinals and BRC-20 are promoting the development of the BTC ecosystem, they have significantly different acceptance in the community acceptance and development direction.

Atomicals & ARC20

Atomicals is a optimized project for Ordinals and BRC20. It focuses on fungible tokens and solves the problem of the index under the centralized chain of BRC20. It uses and expands the UTXO model of Bitcoin to use UTXO of each Satoshi (the smallest unit of Bitcoin) as a specific Atomical tokens or digital objects, so as to create and manage complex digital objects and tokens on Bitcoin System (ARC20).

The main features of Atomicals include:

1. Use Satoshi as the basic unit representative tokens. \
2. Allow the creation, transmission, and update number objects on Bitcoin. \
3. Provide tokenization methods for decentralization and compliance with Bitcoin culture. \
4. Use the workingload proof (POW) to increase the fairness and decentralization of the minting process. \
5. The purpose is to expand the function of Bitcoin and support more widely used applications.

Atoomicals fundamentally reinterpreted how to centralize, cannot be tampered with and fairly issued tokens on Bitcoin. It uses Satoshi as the basic “atom”, and each Satoshi’s UTXO represents a token. When verifying the Atomicals transaction, you only need to check the corresponding UTXO on the Bitcoin chain. The atomicity of ARC20 tokens is consistent with the atomicity of the Bitcoin itself. The transfer calculation is completely processed by the Bitcoin network.

Compared with the BRC20, the demand for third -party indexers has been greatly reduced, which has greatly reduced the degree of decentralization of the system. The combinedability of UTXO makes the ARC20 token more programmatic. For example, theoretically the exchange between BTC and ARC20 only needs to replace the input and output of UTXO.

After the Atomicals protocol was launched in September, the first token Atom was quickly dug. Compared with the BRC-20, ATOM’s mining process has a more technical threshold and fairness.

Atomicals is mint and spread based on the UTXO of Bitcoin. 1 Token is equal to 1 SAT, which is technically more in line with Bitcoin’s original teachings. The Atomicals protocol has defined the ARC-20s tokens and other use cases.

The Atomicals protocol is highly respected by the community and is considered a complete set of protocols. The ARC-20s tokens are mint and transmitted based on the UTXO of Bitcoin. The ARC-20s to each unit is always supported by 1 SAT, that is, 1 token = 1 SAT. All operations of ARC-20 tokens can be done by Bitcoin network without additional steps.

Atomicals introduced POW during the ARC20 minting process. The mintor must calculate the hash value of a specific preliminary character to mint. This is a more decentralized fair distribution method. The Atomicals protocol provides the prefix parameter settings of Bitwork Mining for the ARC-20, allowing participants to directly dig the inscription/NFT. The ARC-20s tokens are loyal to the principles of Bitcoin’s original teachings. The emergence of related tools in the future will enhance its liquidity.

In summary, Atomicals, as a competitor of Ordinals, focuses on decentralized creation and management of fungible tokens and digital objects. Through the expansion of the UTXO model of Bitcoin, it has achieved more decentralization and more in line with Bitcoin culture. Token system. The ARC-20s token standards are expected to obtain the support of the core community of Bitcoin with their technical advantages and design that conform to Bitcoin’s original teachings, and bring wider application possibilities to the Bitcoin ecosystem.

Rune & PIPE

The Rune protocol comes from Casey Rodarmor, the founder of Ordinals. Casey proposes a concept of a homogenic tokens based on UTXO, which aims to solve the limitations of these solutions.

The main characteristics and design concepts of the RUNE protocol include:

1. Based on UTXO : Runes balance is stored in UTXO, each UTXO contains any number of Runes. \
2. Transaction and protocol information : The output of a specific script is deemed to be part of the protocol information, and the transfer and distribution method of Runes is defined. \
3. Flexibility : The transfer of Runes is implemented by explaining data push in transactions, providing flexible distribution methods. \
4. Distribution mechanism : The second data push is deemed to be issued, allowing the creation of new Runes. \
5. Simple and decentralized : Runes protocol is as simple as possible, does not rely on the data or native currency under the chain, and adapt to the UTXO model of Bitcoin. \
6. Symbol distribution : Runes can be associated with symbols, but the protocol does not involve the problem of symbolic grabbing to maintain simplicity.

Although Rune only exists in the conceptual design stage, BennytheDev has realized PIPE Protocol on the basis of the technical architecture proposed by Casey. PIPE is an important part of the Trac ecosystem. The ecology also includes BRC20 token $ trac, Bitmap, and BennytheDev’s Ordfi ecological protocol TAP Protocol developed for BRC20, which allows BRC20 to implement DEFI functions such as tokens exchange (SWAP).

Bitmap & BRC420

Bitmap.land is the first metaverse project in the Bitcoin ecosystem. It is based on ordinal theory and bitmap theory.

Ordinals theory numbers the Bitcoin’s smallest unit, Satoshi, and defines Satoscope’s scarcity. This can be understood as a “Satoshi” is a number of boxes. Its scarcity is determined by production time and can be used to load data.

Bitmap theory was proposed by Twitter users @blockamoto on June 13, 2023. This theory enters the transaction in the Bitcoin block into a parcel into a plot to form a district or area (district). Different transactions input differences lead to different size of the maps.

Bitmap.land buyers are influenced by Decentraland and The Sandbox, and use the method of dividing land and drawing patterns on the map, similar to the logic of buying land on these two platforms. The user writes the data into Satoshi through the inscription, and obtains the ownership of a specific Bitcoin block, similar to a free coin.

On the Bitcoin blockchain, each block is divided into four parts to represent different half -cycles. Users can check the numbers and colors of each block on the BitMap.land website, and different colors represent different sales status.

The release of Bitmap.land is closely related to order theory, similar to the Virtual land on Decentraland and The Sandbox depends on the ERC-721 standard. The preface theory is similar to the principle of early chromosome coins, but in the context of Bitcoin’s current narrative, consensus, ecology, and infrastructure, the two are different. Although the theory of order number is not as innovative as ERC-721, the BRC-20 method is more primitive.

The bitmap theory adds a new explanation to the Bitcoin block and provides a topic, although it lacks practicality. It changed the connection between Bitcoin and the metaverse. By allowing users to own and record a single block, it provides a new dimension for each block of the Bitcoin blockchain and makes it part of the metaverse.

The bitmap theory has attracted the attention of the Ordinals community and inspiring the inscription. 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 blurred the boundaries between Bitcoin and the metaverse universe through the theory of bitmap, and paved the way for ownership, creativity and community development. With the continuation of the inscription boom, this means huge potential for those who seek to occupy a place in the digital field.

The BRC-420 protocol, since November 13, 2023, with the total number of ordinals inscriptions exceeding 40 million, it has become one of the active tokens in the Bitcoin ecosystem. Unlike the traditional token protocol, the BRC-420 focuses on the modularity of the inscription on the chain, creating a new type of assets on Bitcoin. Its first token, commonly known as “Blue Box”, has achieved significant market gains. It has increased from the initial $ 0.15 to $ 1,000. Developers have obtained a significant chain tax income in a short time.

The BRC-420 protocol is based on Bitmap asset protocol. By combining multiple inscriptions into a complex asset, it creates a variety of assets from small characters, pets to complete game scripts and virtual machines. Due to the open source characteristics on the chain, any client can run or check, which fully reflects the spirit of the “Client Agnostic” of the full -chain game. Although RCSV’s Bitmap browser dominates the market, other teams have the opportunity to develop clients to operate BRC-420 assets.

From a market perspective, the number of Holder’s address of Bitmap has exceeded 25,000, surpassing Sandbox, becoming the largest meta cosmic assets with the largest number of Holder. This achievement benefits from its fair launch mechanism and the collective efforts of more than 200 development teams around Bitmap. The market value of BRC-420 has increased with the launch of the Bitmap browser and protocol itself, and it has reached about 30 million US dollars.

The project party of RCSV, BRC-420 is actively promoting the full-chain game program of the Bitcoin ecosystem. The plan emphasizes the assets, gameplay, logic and data on the full chain, and aims to create a truly decentralized Bitcoin chain game ecology. For example, developers can use the “fighting module” on the BRC-420 to quickly develop and release new games, and at the same time, they only need to pay the version tax through the protocol.

RCSV also proposes a capacity expansion solution for the Bitcoin network to solve the capacity limit of the Bitcoin network when dealing with a large number of transactions. The plan aims to migrate assets from the layer 1 to the layer 2, and to achieve a complete virtual machine environment on the next layer of Module. This arrangement aims to provide a low -rate and high -efficiency interactive environment for Bitcoin assets at a maximum of security.

In general, the BRC-420 protocol and related Bitmap projects are inspiring innovation and vitality in the Bitcoin ecosystem. By creating complex and modular digital assets, the BRC-420 is providing new economic opportunities and interactive experiences for creators, developers and users. With the continuous efforts of the RCSV team, the concept of all -chain games and the metaverse of the Bitcoin ecosystem is gradually becoming a reality, showing the broad prospects of Bitcoin technology and applications.

BRC100

BRC-100 is a expansion protocol based on the Ordinals theory, designed for various decentralized applications on Bitcoin Layer 1. This protocol not only undertakes the basic functions of BRC-20 on Bitcoin, such as creating, minting and transactions, but also introduced the concept of decentralized calculation. This means that based on the BRC-100 protocol stack, you can develop various decentralized applications such as DEFI, SocialFi, and Gamefi to bring real decentralization, no trust, resistance, and no license to Bitcoin’s layer 1. Application scenario.

A major feature of the BRC-100 protocol is its interoperability. It not only allows all protocols and applications in its protocol stack to be compatible, but also supports BTC, BRC-20 or other first-layer chains such as Ethereum and Stacks interacts. In addition, the protocol also introduces the UTXO model and status machine model, which enhances its security and computing power.

This protocol also includes a series of innovative characteristics, such as inheritance concepts, application nested, address and application status, authority settings, and decentralized governance. For example, the inheritance concept introduced by the BRC-100 allows the protocol to directly or indirectly inherit the characteristics of the BRC-100. At the application level, applications based on the BRC-100 and its extension protocol can be nested to form sub-applications. At the same time, the protocol also introduced two roles: owners and administrators, which provides a foundation for the decentralized governance of the application.

The practicality of the BRC-100 is manifested in its diverse application cases, from BRC-101 to the automation liquidity protocol BRC-102, as well as functions such as pledge, airdrops, loans and stable coins pools. These expansion protocols make the BRC-100 not limited to token transactions, but also supports more complex financial operations and calculations.

In general, the BRC-100 protocol has opened a new decentralized application field on the Bitcoin chain through its innovative characteristics and strong computing power. It not only inherits the advantages of the BRC-20, but also provides a framework for an open protocol, providing new possibilities for the future development of the Bitcoin ecosystem.

Taproot Assets & NostrAssets

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 Lightning Network. Lightning Network has been widely recognized by the Bitcoin community as a mature Bitcoin derivative protocol. Taproot Assets update expands the function of the lightning network from a simple point -to -point transaction payment channel to the point -to -multi -mode that can realize the distribution of asset distribution. The characteristic of Taproot Assets is to record the token information in the UTXO output script of the Bitcoin main network as registration, and the functions such as transfer transactions are implemented in the lightning channel. The biggest difference from the BRC20 and ARC20 is that the distribution method of Taproot Assets is pre -mint and distribute by an owner, not freely mint.

Taproot Assets is supported by Lightning Labs with a large amount of financing background and Jack Dorsey, the founder of Twitter, making it better than other grassroots projects in terms of regularity and community support.

NostrAssets is an open source protocol that introduces Taproot assets and Satoshis to Nostr ecosystem. Users can use NOSTR’s public key and private key to send and receive assets at the NOSTR protocol layer. The settlement and security of assets depend on the Lightning Network, and the NostrAssets protocol itself does not issue assets, but only introduces the assets into NOSTR through the protocol.

The characteristics of NostrAssets include seamlessly integrated Taproot assets and Bitcoin into the Nostr ecosystem, provides developers with tools to create innovative products, enrich the value of Bitcoin and lightning network ecosystems, and achieve seamless experiences from chat to transactions. In the future, NostrAssets plans to introduce Taproot assets from other Daemon University, allowing receiving and sending Taproot assets to enter and exit Nostr.

NostrAssets’s vision is to promote users to join the Bitcoin ecosystem and deliver Taproot assets to global users. By providing modular development tools, NostrAssets aims to promote the construction of decentralized applications, thereby providing user friendly and commercial practicality.

On October 30, Nostr ASSETS conducted airdrops on users participating in its early tasks and distributed the first token Trick & Treat on its platform to celebrate Halloween. At present, the value of these tokens has risen to about $ 2,000.

The total supply of these tokens is 210 million pieces, totaling 420 million. The total amount of airdrops is about 80 million, accounting for about 20%of the total supply.

Nostr Assets also announced that it is about to launch the Fair Mint function, and finds project parties with interest in issuing assets on Twitter to cooperate. This means that once the function is launched, it is expected that a large number of new assets will appear on the protocol, which may attract widespread attention and participation in the community. This series of activities show that Nostr ASSETS is actively expanding its ecosystem and preparing for future development.

Ethscriptions

ETHScriptions is an protocol alternative to smart contracts and L2, allowing users to share information and execute calculations on Ethereum L1 at low cost. It has achieved decentralized calculations by applying the rules to Ethereum to call data to bypasses the storage and execution of smart contracts. In August 2023, EthScriptions introduced virtual machines (ESC VM) to enhance its functions and make it a general computing engine.

The founders of ETHScriptions include MiddleMarch (similar to the Domo of BRC20) and Michael Hirsch. The first protocol tokens were $ ETHS. As the current leading token, the early minting price was only about $ 0.5, and then rose to about $ 3,000 in the market, bringing significant returns to investors. Although this result is not as good as the $ Ordi and $ Sats of the BRC20 sector, compared with other inscription sectors, it has shown significant growth and establishes its position in the thousands of sectors.

In addition to $ ETHS, EthScriptions also has other projects worthy of attention, such as FacetsWap. Facet is a decentralized trading platform developed by MiddleMarch and Michael Hirsch. It was originally called Dumbswap and was renamed FaceTswap. Although the price and market value of $ Facet temporarily lag behind $ ETHS, its potential value may be more obvious after the main network is launched.

IERC20 is a new tokens based on Ethereum, which provides a low -cost tokens ecosystem that allows anyone to deploy, mint and trading tokens on it. $ ETHI, as the first token in the IERC20 ecosystem, was officially supported. This protocol not only provides more choices for Ethereum users, but also promotes the development of the inscription ecology on the Ethereum chain.

In the latest cryptocurrency development, the IERC20 protocol and Binance incubated GAMEFI project Sparkle announced cooperation to introduce INScript NFT and other inscriptions on IERC20, which aims to use the advantages of the inscription to enhance the gameplay game gameplay. This cooperation has attracted widespread attention in the Ethereum community, especially the focus from ETHS to the IERC20 protocol.

The uniqueness of the IERC20 protocol is that it not only develops the SWAP function, but also integrates the EVM cross -chain function, and builds a bridge between the Ethereum inscription and the traditional Layer2. This feature enables the protocol to introduce more mainstream coins and stable coins, thereby expanding the tvl of the inscription ecology, providing more development possibilities for the entire system.

In addition, the IERC20 protocol also plans to introduce the fair mining model of POW and cooperate with other projects to launch new inscriptions, similar to the ATOM protocol mining method. This strategy is expected to bring new impetus to the development of Ethereum ecology.

Although $ Ethi and $ ETHS were launched almost at the same time, due to the low -key early stage, $ Ethi did not quickly gain reputation as $ ETHS at first. However, with the rise of $ ETHS and the increase in market attention, $ ETHI has also begun to receive more and more attention. The detachable split technology of $ ETHI makes it more attractive to retail investors. Although the current market value is still lower than $ ETHS, its development potential cannot be ignored.

In the IERC20 ecosystem, $ ETHI is regarded as an important tool, similar to shovel, providing a special empowerment for the holder. For example, users holding $ ETHI may get inscription airdrops of cooperative projects, such as recent cooperation with Sparkle. In addition, the FOMO emotions in the community are spreading. Many investors are optimistic about the future development potential of $ ETHI. They believe that it is an official tokens recognized by IERC20 and will increase with the launch of the POW mechanism and the continuous development of the inscription ecology.

In general, the ERC20 sector is showing its huge potential, and more miracles may be created after the BRC20. With the addition of more high -quality projects and the development of ecology, this field is expected to attract more users and innovation.

Other Public Chain Inscriptions

As the wealth effect generated by the Bitcoin inscription spread to other public chains, various types of “RC 20” tokens began to cause heated discussion in the community, forming a FOMO phenomenon, including Doge inscriptions, BSC inscriptions, Litecoin inscriptions, BASE inscriptions , Polygon inscription, Solana inscription, etc.

Especially on November 16, the GAS cost of the Polygon network rose sharply, as high as 1800 GWEI, because the community discovered the PRC-20 standard token Pols deployed in May this year. According to the data of [EVM.LINK] , the total circulation of POLS is 21 million.

Inspired by the missed Bitcoin inscription tokens, community members have begun to “play a few defense.” Compared with the high cost of BRC and ERC, the simple and low -cost Pols quickly attracted attention in the community. Users can mint Pols by accessing [EVM.LINK] and pay less than 0.05 matic to mint Pols.

The community also shared the method of collecting a batch gathering function (need to import wallet private key) or script to mint Pols in batches. Polygon’s low GAS expenses are considered as one of the advantages of Pols as the inscription tokens. If 21 million POLS is completely mint, Polygon may become the largest number of inscriptions on all EVM chains including Ethereum. This is naturally reminiscent of the BRC inscription tokens SATS, which has attracted widespread attention from the community due to its significant increase.

Future opportunity

In March 2023, Galaxy Research and Mining predicted that by 2025, the market capitalization of the Ordinals market would reach $500 million, with only 260,000 runes at that time. However, the current number of runes has already reached 33 million, a growth of 126 times in just six months. Additionally, the market capitalization of ORDI has reached $400 million, and the market capitalization of SATS has reached $300 million. This clearly indicates that the predictions for the entire rune market were significantly underestimated.

The sector has seen a plethora of different protocol offerings, with miners being the primary beneficiaries. According to Tokenview’s on-chain data monitoring, the Bitcoin network’s daily transaction fees have reached $11.6 million, surpassing Ethereum for the first time since 2020. As the Bitcoin halving approaches, miners are in urgent need of supplementary income.

The prosperity of the not only brings benefits to miners but also indirectly maintains the security of the Bitcoin network. The reduction in block incentives will increasingly make miners rely on transaction fee revenue to cover operational costs. In the long term, the future of Bitcoin will undoubtedly involve competition among various scaling solutions. The eruption of the current sector and the resulting high transaction fees serve as a catalyst towards that future.

The current BRC20 trading activities are mainly concentrated in OKX and Unisat. With the emergence of various other protocols, different protocols have different trading markets, such as Atomicals Market for ARC20. In the end, the emergence of the leading protocol will definitely be born of a unique trading market, and the competition in the trading market is far from over. The wallet market is also similar. At present, the BRC20’s main wallet is Unisat, but there are still different wallets on the market to launch and access different inscription protocols.

As the funds are constantly pouring into the inscription market, users are no longer satisfied with the hype of Meme, and they have begun to turn their attention to inscription -based applications. The BRC420 mentioned in this article is a typical example. UNISAT also brings innovation to the BRC20. Through the BRC20-SWAP, users can easily exchange BRC20 tokens like AMM DEX. As the first product to improve the ecological liquidity of Ordinals, it is expected to release the potential of the Bitcoin DEFI ecosystem.

In the future, more functions such as borrowing and derivatives may occur. Recently, Unisat has also opened the API interface, which is very friendly for small developers. You can call many functions, such as automatic batch scanning, monitoring inscriptions and automatic MINT, which can produce a lot of tool projects.

ORC20 returned on November 20 and released the Nirvana upgrade, which improved the inscription format to support BTC Defi integration, introduce stable currency support, and provide services to publishers such as USDT and USDC. Compared with the BRC20, ORC20 is obviously more complicated, which can change the initial supply and maximum coin volume, and the naming is no longer limited by four -character words. However, it is also considered to be more centralized by the community, and the upgradedness is also considered by the community to violate the spirit of the blockchain that cannot be changed. It is worried that the project party has maliciously added and insider trading.

Overall, BRC20 stands out as the most original and first protocol to be listed on exchanges. It enjoys the strongest community consensus, and its fair launch has left a positive impression on users. With ORDI being listed on Binance, it signifies that all exchanges are beginning to recognize and support the innovations of the sector. Supporting BRC20 deposits, withdrawals, and building self-indexing capabilities pose significant technical challenges. Therefore, it is expected that BRC20 tokens will continue to be prioritized for listing on exchanges. Moreover, BRC20 tokens are not limited to being mere memes. Project teams have the option to choose an existing BRC20 token with established community consensus as a utility token. This approach not only mitigates regulatory risks but also provides access to an existing community.

Summary and Outlook

The development of the inscription sector shows significant vitality and innovation. The growth of this sector is mainly due to the key technological progress of Bitcoin, such as Segwit, Bech32 encoding, TAPROOT upgrade and Schnorr. Trading efficiency and scalability also increased its programming. With the application of these technologies, the inscription market has gone through rapid prosperity, which not only attracts investors and users, but also promotes the development of various projects and protocols, such as Ordinals, BRC20 and Atomicals.

The growth of this sector also has a positive impact on the interests of miners. With the rise of projects such as Ordinals and Atomicals, the source of income from miners has been expanded, indicating the importance of the inscriptions on the Bitcoin network. In addition, other public chains have also begun to appear inscription sectors, showing its extensive potential and influence.

Looking forward to the future, the inscription sector is expected to continue to witness technological innovation and promote the realization of more complex functions. Market 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 appear, further enriching the inscription ecology of Bitcoin and other public chains. Miners’ income may also continue to grow because the inscription sector provides new income opportunities.

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https://new.qq.com/rain/a/20231007A04TFL00

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