What is Unisat wallet?

The Origin of BRC-20

In the process of BTC network transfers, the computation model, grounded in UTXO, means every transaction generates a multitude of inputs (augmenting the balance) and outputs (diminishing the balance). This detail, when tied to the user’s account balance portrayal, forms a sum in the blockchain records, a consolidation of inputs and outputs.

Moreover, every Bitcoin unit consists of smaller denominations named Satoshis, with one Bitcoin (1 BTC) containing a hundred million Satoshis (10^8 sats). Consequently, 50 BTC within the network can be conveyed as 4,999,999,999 sats. Upon users conducting BTC transactions over the network, the ensuing record manifests as follows:

Source：https://www.odaily.news/post/5187233

Operating on a First-In-First-Out (FIFO) principle, the use of sats adheres to a specific sequence where the sats produced earliest are utilized first in transactions. This includes the inaugural sat minted in a block, the initial sat mined during a difficulty adjustment, the first sat produced during a halving event, and so on. Ordinals allot unique identifiers to sats minted at these diverse moments or having distinct features, categorizing them into varying levels of scarcity to amplify their collectible appeal.

The realization of embedding token-related information into the BTC network by Ordinals has been made possible due to two significant upgrades previously implemented on the BTC network.

In August 2017, the BTC network underwent the Segregated Witness upgrade, a strategic improvement primarily segregating the transaction’s signature data (Witness Data) from its informational content (Transaction Data). Signature data found a new home in the so-called “Segregated Witness” block, while transactional information remained within the original block. This structural revision enabled an individual BTC network block to house a higher number of transactions, thus augmenting the Bitcoin network’s transaction processing capacity and facilitating network expansion.

In 2018, the BTC network experienced another transformation with the Taproot upgrade, introducing greater flexibility and privacy to the ecosystem. A vital component of this upgrade was the implementation of Tapscript, an enhanced version of the Bitcoin programming language Script. This addition facilitated the inclusion of supplementary content into transaction inputs. The combination of the SegWit and Taproot upgrades effectively surmounted the BTC network’s data storage limitations. As a result, Ordinals gained the ability to preserve various data forms, such as text, images, JSON data, in the witness data. Furthermore, the stored data was exempt from execution, enabling its permanent retention within the BTC network.

Therefore, the essence of the BRC-20 at this stage is the following: Ordinals, in the form of JSON (akin to a text ledger encompassing deployment, minting, and transfer logic), are integrated into the BTC network, culminating in an inscription. Any data that is injected is referred to as an inscription.

Building on this foundation, the assignment of identifiers to sats, coupled with the inscription injection, enables users to issue BRC-20 tokens or mint NFTs through the Ordinal protocol. For example, the first BRC-20 token was ORDI, named after the first four letters of Ordinal with a total volume of 21 million. Users can mint it by merely covering the on-chain GAS fee.

Product Features

Currently, most BRC-20 tokens are primarily deployed via third-party tools. The UniSat Wallet simplifies this procedure, offering a lightweight wallet plugin that expedites the deployment and transaction processes for BRC-20 tokens.

UniSat Wallet supplies a range of services within the BTC ecosystem, including the purchase and sale of tokens and NFTs, token minting, and BRC-20 token information queries. Users start by installing the wallet and obtaining a wallet address, then transferring BTC from an exchange to the wallet—procedures akin to those undertaken with a standard Web 3 wallet.

Once the wallet is set up, users can explore UniSat’s official website marketplace to inspect various BRC-20 token information and listing prices.

For instance, in the first token displayed above, 90 represents the total quantity of tokens, $8.76 is the price per token, and $788.53 is the aggregate price, with the corresponding satoshi count being 2,920,500. By selecting the appropriate token and clicking ‘Buy,’ one can complete the purchase.

Users also have the option to search for tokens whose minting process has not yet been completed on UniSat’s provided BRC-20 token search page and proceed with minting.

Taking the Doge token as an example, the image below encapsulates details like its total supply of one trillion, already minted 147,923,949, a single mint quantity of 4,200, the count of holders, and so on.

Similarly, once minted, tokens can be listed for sale on the marketplace. Users can deploy domain names with customized parameters or mint NFTs on UniSat’s official website, as shown in the image.

Users can upload files, mint domain names, or BRC-20 tokens, as shown in the image.

After verifying that the receiving address is accurate, users are required to pay the corresponding GAS fees. Generally, within 10-30 minutes (pending BTC network block confirmation), users will spot the freshly minted BTC NFT in their UniSat Wallet. On May 31, 2023, UniSat launched domain name trading and currently supports the listing and trading of both sat and .unisat domain names.

Market Landscape

Source：https://dune.com/dgtl_assets/bitcoin-ordinals-analysis

The graphic illustrates the minting activity of BRC-20 tokens on the Ordinals platform. To date, minted inscriptions have exceeded ten million, with text-based inscriptions dominating the landscape (making up over 90% of the total), followed by image-based inscriptions. Daily inscription additions hover around 80,000, marking a decrease from the early May high point where daily increases touched 400,000.

While recent enthusiasm surrounding the BTC ecosystem may have cooled, the evolution of ideas associated with BRC-20 tokens continues unabated. As a case in point, Binance Academy spotlighted an alternate token format, ORC-20, on May 13. This format is a step up from BRC-20 regarding technology, with more adaptability and customizable features, enhancing its security and reliability. Features like adjusting the initial supply and maximum mintable amount, and the ability to use any size of name, make ORC-20 a potential catalyst for wider application in the future.

In another development, the Litecoin community unveiled a forked version of the BRC-20 token on May 2nd, known as the LTC-20 token. Thanks to the Litecoin network’s efficiency, the time to produce a block is 2.5 minutes, and each transaction costs around 0.1u. When set against the BTC network, the Litecoin network excels in block production speed and transaction costs. The affordable entry point makes the Litecoin network an appealing choice for users. Moreover, the planned halving of Litecoin in August may see more market funds and traffic funneled into the Litecoin ecosystem in the latter half of the year.

Conclusion

The recent surge in the BTC ecosystem has attracted significant attention and capital. The advent of the Ordinals protocol opened up a new direction for the development of the BTC ecosystem, introducing NFTs and tokens to the BTC ecosystem through data inscription, allowing cryptocurrency users to freely utilize BTC’s block space to deploy NFTs or tokens, and construct new narrative logic.

Currently, BRC-20 tokens or BTC NFTs are merely stored on the BTC chain. However, BTC inherently cannot execute smart contracts. The actual token transfer, minting, and other data rely on auxiliary monitoring from off-chain ledgers. Thus, the security of BRC-20 tokens is partly transferred to third-party institutions, instead of relying entirely on the Bitcoin blockchain, indicating potential centralization risks.

Nevertheless, the BRC-20 standard currently dominates the BTC ecosystem market. As the development of ORC-20, LTC-20, and other token standards progresses, and potentially more tokens with different functions are introduced, the market’s preference for different token formats will depend on long-term developments. Overall, the current BTC ecosystem is rapidly rising, accompanied by various emerging concepts. For investors, rational participation should remain the primary approach.