Bitcoin

This article introduces Satoshi Protocol, the first Bitcoin Layer 2 project compatible with BEVM for EVM development experience. It will guide readers through various aspects of the protocol and how to participate in the Testnet activities. By understanding Satoshi, readers will gain a rough impression of the trends in BTC Layer 2 development.

Based on chain abstraction technology, MerlinChain enables BTC and other derivative assets to be cross-chained to Layer2, establishing an application protocol ecosystem and providing liquidity markets. Through the BTC-Connect platform of Particle Network, users can securely trade in their wallets, solving the problem of interaction between different chains.

This article introduces how Stacks brings smart contracts to the Bitcoin blockchain and discusses the investment value of the STX token. Stacks achieves symbiosis with Bitcoin through the POX consensus mechanism, where miners earn STX rewards by producing blocks, and holders earn BTC rewards by participating in Stacking. Stacks also implements the sBTC mechanism, allowing smart contracts to read Bitcoin state and settle transactions on the Bitcoin chain. With a first-mover advantage, Stacks' ecosystem covers areas such as wallets, NFTs, DEX, DeFi, etc., and STX, as the native token, holds long-term investment value. With the development of the Bitcoin L2 track, the Stacks ecosystem is poised for significant growth, demonstrating enormous potential.

Merlin Chain is a ZK Rollup Bitcoin second-layer network supported by multiple types of native Bitcoin assets and compatible with EVM, launched by the famous BRC-420 blue box and Bitmap team. BRC-420 and Bitmap demonstrate excellent data performance in the market. Bitmap is produced with BTC blocks, with 144 new blocks added every day, and the transaction volume is approximately 600 BTC.

Recursive inscriptions allow inscriptions to interact with each other, enabling new use cases. The generation of art, on-chain displays, and efficient storage has now become a reality. We can expect promising applications in art generation, chain games, metaverse, and more with the adoption of recursive inscriptions, as killer-level applications are believed to be brewing in the future.

With the launch of ETF, the explosion of BRC-20 ecosystem and the added narrative of halving, the market's focus is once again on the Bitcoin ecosystem. CKB seems to have always adhered to its original intention, insisted on being isomorphic with Bitcoin, and further bridged the gap.

With Bitcoin hitting new all-time highs, interest in Bitcoin L2 solutions is rising. Emerging competitors like Bison Network, Stacks, BitVM, Botanix, and Chainway aim to enhance Bitcoin’s capabilities, enabling faster transactions and smart contracts. Stacks allows earning BTC by staking STX tokens, BitVM employs unique hash lock and time lock systems, and Botanix achieves seamless Bitcoin and Ethereum integration through its spider chain design. The development of the Bitcoin L2 ecosystem, coupled with the launch of the first Bitcoin ETF in the United States, sets the stage for Bitcoin’s resurgence.

The Bitcoin halving event strengthens its deflationary model by slowing down the rate of new coin generation, sparking widespread discussions about the sustainability of mining and its environmental impact, while also inspiring the potential shift towards more eco-friendly mining technologies.

The article analyzes how to implement Layer2 solutions, change community awareness, improve infrastructure and other measures to promote the growth of the Bitcoin ecosystem, cover and surpass the scale of Ethereum, and achieve a new chapter in blockchain development.

The research report on the development of the Bitcoin ecosystem provides a detailed introduction to the concept of Bitcoin layers and various functionalities to address scalability challenges. The report focuses on four major Bitcoin layers: Stacks, Lightning, RSK, and Liquid, each making unique contributions to the growth and scalability of the Bitcoin ecosystem. More L2 solutions may emerge in the future to meet the growing demand for applications. Bitcoin's role as a native asset and for transaction settlement has sparked discussions and opportunities to expand its use cases.

This article mainly explores the understanding of Bitcoin L2, the mechanism of RGB++, the assets of RGB++, and the development ideas of the CKB ecosystem.

MVC, a BTC sidechain based on the UTXO model + PoW consensus, offers low fees, high performance, and security features. It has a rich ecosystem implementation aimed at enabling innovative, large-scale applications within the Bitcoin ecosystem.

Ordinal theory is a new method of inscribing data onto the Bitcoin blockchain, endowing the smallest unit of Bitcoin, the satoshi (sat), with numismatic value, and allowing for the tracking, trading, and transferring of individual sats. It uses different representation methods to enumerate satoshis and describes their rarity based on their position in the blockchain. Inscriptions are a way of recording arbitrary data within a Bitcoin transaction, embedding data onto the Bitcoin blockchain through a two-step transaction process. It has the potential to impact the Bitcoin and cryptocurrency industry in the medium to long term but has also sparked divisions within the community. Inscriptions are also influencing the NFT space, as seen with protocols like Nervos' Omiga and Spore.

As BTC continues its halving, the impact of the supply side on BTC prices continues to diminish. However, we still need to formally observe the potential selling pressure.

The Bitcoin NFT project NodeMonkes has rapidly risen to become one of the largest NFT collections. Their transaction volume and value continue to grow, with the highest transaction reaching 16.6 BTC. Whales are also flexing their muscles in the NFT market, recently purchasing CryptoPunk3100 for 4500 ETH. The rise of NodeMonkes has spawned interest in other Bitcoin NFT projects, but for now it remains the flagship NFT collectible in the Bitcoin space. It is also possible that other projects will replace them over time. Let’s wait and see!