The Emergence of SATs: New Momentum in the Bitcoin Ecosystem

Introduction

As blockchain technology continues to develop, new concepts like Bitcoin inscriptions, SATs, the Ordinals protocol, and the BRC-20 standard are increasingly becoming the focus of the industry. These trends not only demonstrate the innovative potential of blockchain technology but also indicate the future direction of digital currency development.

Bitcoin Inscriptions: A practice of embedding data directly onto the Bitcoin blockchain using the Ordinals protocol. Unlike traditional NFTs, inscriptions are recorded directly on the Bitcoin blockchain, offering higher immutability and security.

Ordinals Protocol: An innovative numbering system used for marking and adding data to the smallest unit of Bitcoin - the satoshi. It brings new use cases to the Bitcoin blockchain.

SATs (Satoshi): As the smallest unit of Bitcoin, SATs have become more functional and practical through the BRC-20 protocol, turning into a popular memecoin.

BRC-20 Standard: An experimental token standard that enables the creation and transfer of tokens on the Bitcoin blockchain, bringing more innovation to the blockchain.

The Role of UniSat: As a vital wallet hub in the BRC-20 ecosystem, UniSat supports the use of SATs as gas fees, promoting their widespread use on trading platforms.

Impact on the BRC-20 Ecosystem: The support of UniSat has established it as a top trading platform, driving the development of the entire BRC-20 ecosystem and the popularity of SATs.

With the emergence of these new technologies and concepts, the blockchain ecosystem is rapidly evolving. From Bitcoin inscriptions to the application of SATs, from the Ordinals protocol to the BRC-20 standard, these innovations are opening up new possibilities for blockchain technology, heralding a future that is richer and more diversified.

The trading price of SATS is $0.000000617 (Source: Coingecko, December 23, 2023)

Origin and Concept

Overview and History

• At the end of 2022, Casey Rodarmor introduced the Ordinals theory, a system for identifying and numbering the smallest unit of Bitcoin, Satoshi. This system allows for the direct storage of fungible tokens, non-fungible tokens, and other applications on the Bitcoin blockchain.
• The Ordinals protocol was launched in January 2023. Subsequently, in March, the BRC-20 token standard was created by a programmer under the pseudonym Domo, with the first BRC-20 token named “ordi.”
• In the world of cryptocurrency, the emergence of SATS marked a new milestone. SATS, a memecoin developed based on Bitcoin’s Ordinals protocol, derives its name from Bitcoin’s smallest unit, “satoshi.” Officially announced on March 8, 2023, based on the BRC-20 token standard, SATS embarked on its market journey.
• On November 2, 2023, SATS achieved a significant breakthrough in market price, rising to $4 per token. Following this, on November 3, with the growing BRC-20 ecosystem, the market value of SATS surpassed that of ORDI, demonstrating its growth potential in the cryptocurrency field.
• On November 9, 2023, the Gate.io exchange listed SATS, further driving its price up to $14 per token. By December 4, 2023, SATS, along with ORDI, reached a new market peak, with a historic high of $26 per token. Subsequently, as SATS was listed on multiple trading platforms, its price quickly rose to $54.

Initial Deployment

• SATS, a memecoin developed based on Bitcoin’s Ordinals protocol, officially entered the market on March 9, 2023. Its launch marked the beginning of a new era, particularly in terms of its total supply, a massive breakthrough. With a total supply of 21 trillion SATS, equivalent to about 21 million tokens, this figure is unprecedented in the cryptocurrency domain.
• This unique digital currency quickly gained widespread distribution and acceptance in the Bitcoin network. According to Unisat, SATS has been stored in 39,000 different user wallets, a number that underscores its popularity and broad user base in the cryptocurrency market.
• Considering the minting volume of SATS, it stands out in the market, especially when compared to other similar memecoins like ORDI, with its significantly higher total supply. This large-scale minting and widespread market acceptance enabled SATS to complete the inscription process within just nine months. The developmental journey of SATS not only showcases the diversity and innovation in the field of cryptocurrency but also reflects the market’s swift response and keen interest in emerging digital assets.

SATS Minting Page (Source: unisat.io)

Inscription Progress

• On May 11, oxbt advanced the development of the Brc20 ecosystem, garnering increased attention for SATS.
• By mid-May, the completion of SATS inscriptions reached 1%, and the number of holding addresses climbed to 7,309. In the following months, the inscription progress of SATS steadily increased, as did the number of holding addresses.

Market Response

• Throughout its development, SATS gradually attracted more users and community interest, positively impacting its progress and market value. For instance, by September, SATS inscription progress hit 100%, taking over six months and costing tens of millions of dollars.
• By October, SATS’s market value surpassed that of Ordi, making it a highly regarded token.
• On November 20, several exchanges began to take notice of the promising SATS, simultaneously boosting the development of the Brc20 ecosystem. The number of SATS inscription-holding addresses rapidly increased, surpassing 40,000 on November 12, 2023.

Utility of SATS Token

One of the primary distinctions between SATS and ORDI is Unisat’s adoption of SATS, highlighting its practical application and utility as a token. Here are key milestones in Unisat’s adoption of SATS and corresponding market reactions.

• May 16, 2023: The rise of the Unisat market began to influence SATS. During this phase, with increasing demand for Unisat points, minting SATS became a popular option. This move enhanced SATS’s market visibility, though its price response was not yet significant.
• October 10, 2023: Unisat announced SATS as its service fee, marking a crucial milestone for SATS as it transitioned from a purely speculative asset to a token with practical application value.
• October 30, 2023: Unisat announced the first batch of Brc20-Swap tokens supported, including SATS. This move further strengthened SATS’s market position and practicality. It not only increased SATS’s liquidity but also influenced its market price.
• November 2, 2023: With Unisat’s support, SATS completed the “zeroing” process, with a single price reaching 4U. This indicated a significant increase in market acceptance of SATS and investor confidence in its long-term value.
• December 4 to 12, 2023: SATS reached an all-time high, with prices peaking at 26U, followed by a surge to 54U upon exchange listings. These price changes reflected SATS’s recognition in mainstream exchanges, a direct result of Unisat’s adoption of SATS.

From this analysis, we can see that Unisat’s adoption of SATS had a significant positive impact on SATS’s market performance. Unisat’s adoption not only provided SATS with real-world application scenarios but also enhanced the market’s perception of SATS as a reliable and valuable digital asset. This adoption model brought a stable growth trajectory for SATS, enhancing its competitiveness in the cryptocurrency market.

Technical Challenges and Response Strategies

Advantages: As an emerging blockchain asset, SATS offers new utilities on the Bitcoin network, increasing Bitcoin’s diversity and playability.

Risks: BRC-20 tokens are still experimental and come with unknown risks. Users should exercise caution, as many may ultimately become worthless.

Applications: SATS and other BRC-20 tokens have been listed on several cryptocurrency exchanges, such as Gate and KuCoin, increasing their liquidity and market acceptance.

Although Ordinals and Inscriptions are technically innovative, they also face challenges, such as congestion on the Bitcoin network and rising transaction fees. The limitation in smart contract functionality is another challenge, but a soft fork introducing crypto contracts for smart contract upgrades is anticipated in the future.

Gate.io’s announcement of SATS listing (Source: Twitter)

Market and Applications

Industry Outlook Prediction

Galaxy Research and Mining projects that by 2025, the market capitalization of the Ordinals market will reach $5 billion. The current number of inscriptions has grown to 33 million, significantly exceeding expectations in market value growth.

Community Support

SATS enjoys strong community support, a key factor in its success. Unisat data shows that SATS are stored in 39,000 Bitcoin network user wallets, indicating a solid community foundation and high recognition within the Ordinals ecosystem.

Market Capitalization and Growth Potential

SATS’s market capitalization has reached approximately $150 million. Compared to popular tokens like DOGE and SHIB, there is significant room for growth. Additionally, with the crypto market not yet in a bull phase, SATS possesses tremendous growth potential.

SATS Trading Page (Source: Gate.io)

Future Developments

SATS is a BRC-20 token based on the Bitcoin network, leveraging the Ordinal protocol for functionality. Founded by Casey Rodarmor, the protocol assigns a unique identifier to every satoshi, the smallest Bitcoin unit. These satoshis can be “inscribed” with content like text, images, or videos, effectively creating Non-Fungible Tokens (NFTs) on the Bitcoin blockchain. The introduction of SATS BRC-20 aims to incorporate fungible tokens into the Bitcoin ecosystem, thereby expanding its functionalities, including both fungible and non-fungible tokens.

The success of SATS can largely be attributed to the enthusiasm of its community. Unlike most tokens created to secure a significant position in the blockchain ecosystem, SATS, as a “meme” token, was created purely for entertainment. The Ordinal protocol allows developers to assign different identities or files to each satoshi in the Bitcoin network, forming the basis for token development, whether fungible (like BRC-20 tokens) or for showcasing digital art (NFTs). SATS tokens can be used to create and transfer BRC-20 tokens on the Bitcoin network without the need for smart contracts, allowing users more freedom to create tokens by inputting specific files into satoshis.

In summary, SATS holds a unique position in the cryptocurrency world with its wide range of potential uses and scalability. Although created merely for fun as a token meme, SATS has managed to attract considerable attention due to this concept. With its unique concept, impressive price growth, and growing community, SATS demonstrates the potential of the cryptocurrency world to offer both enjoyment and profit opportunities to users. However, like any investment, the potential rewards and risks must be carefully assessed.

Competitive Analysis

Overall, there are significant differences in market value, supply, price, and characteristics among these blockchain inscription tokens. SATS and ORDI are close in market value but differ greatly in price and supply. ATOM has the highest market value, yet its price is moderate. Other tokens like ETHS, FACET, POLS have distinct performances in the market. It is important to note that some tokens, such as RATS, SHIB, NANO, and OKTS, have unstable market value data or are not yet listed, which may affect their market evaluation. These data reflect the diversity and complexity of the blockchain inscription token market.

Industry Development Status

In the blockchain field, especially tokens based on the Bitcoin blockchain following the BRC-20 standard, are undergoing significant developmental transformations. Since the introduction of the Bitcoin Ordinals protocol in early 2023, the adoption of the BRC-20 standard marks a new era in this domain. This standard uses JavaScript Object Notation (JSON) data inscriptions to support the deployment, minting, and transfer of tokens, adding the possibility of digital asset custody to the Bitcoin network and enhancing its security levels.

BRC-20 tokens, as a new token standard on the Bitcoin blockchain, are achieving significant development on the Gate.io exchange. These tokens utilize Bitcoin’s Taproot upgrade for functionality, offering a variety of potential applications including peer-to-peer transfers, decentralized finance (DeFi), and asset tokenization. Platforms like Ordinalswallet.com already support decentralized minting and trading of BRC-20 tokens and ordinal NFTs.

The introduction of BRC-20 tokens has elicited mixed reactions within the Bitcoin community. On one hand, some support higher transaction fees as crucial for Bitcoin’s long-term sustainability; on the other hand, there are criticisms about these increased fees, arguing that they deviate from Bitcoin’s original intent as a P2P transaction system. Concerns about their real-world utility and high-risk fraud also exist.

Against this backdrop, multi-chain aggregators and platforms like 20EX are seeking to provide higher market efficiency and liquidity solutions for BRC-20 tokens. 20EX, by integrating liquidity resources from multiple blockchain networks, reduces slippage and increases profit potential, offering a safer and more user-friendly environment for digital asset trading.

Despite challenges, BRC-20 tokens, particularly SATS, are bringing new possibilities to the Bitcoin network, such as tokenization and seamless P2P transfers, along with potential applications in the DeFi sector.

Market-wise, BRC-20 tokens have reached a market value of approximately $550 million. BRC-20 tokens supported by the Gate.io exchange include VMPX, MEME, BANKBRC, and PEPEBRC. Although BRC-20 tokens may not be as flexible as Ethereum’s ERC-20 tokens, they still demonstrate significant potential on the Bitcoin network.

Furthermore, Gate.io has included BRC-20 tokens in its Proof of Reserves (PoR) report to enhance transparency and ensure the security of user assets. Gate.io is committed to supporting the development of the BRC-20 ecosystem, including markets, distribution, trading, and infrastructure support.

Gate.io became the first exchange to list BRC-20 tokens in May 2023, with $ORDI being the first and largest token based on this standard to be listed. Since then, Gate.io has expanded its support to twenty BRC-20 tokens, including $TRAC, $SATS, $RATS, and $PEPEBRC.

Additionally, the Bitcoin EVM (BEVM) project provides a Layer 2 solution for the Bitcoin ecosystem, increasing the convenience of building applications on EVM chains. However, this also introduces certain challenges and security issues, requiring the effort of both the community and developers to resolve.

In conclusion, BRC-20 tokens, especially SATS, are driving the development in the field of blockchain inscription tokens, demonstrating a significant potential impact on the future crypto ecosystem. As these technologies mature and the market expands, we can expect to see more innovative applications and use cases emerge.

Conclusion

SATS, as a blockchain-based inscription token, has quickly gained significant market influence and community support with its technological advantages and market strategies, showing enormous growth potential. Despite initial skepticism, SATS has achieved notable progress and growth, thanks to its solid community foundation and market strategies.