Bitcoin and inscription: The main narrative of the Crypto Assets world

The significant rise of Bitcoin and the thriving development of the inscription ecosystem have become the main topics in the Crypto Assets field this year. The increase in Bitcoin's price is attributed to multiple factors, including the prosperity of the on-chain ecosystem, expectations for spot ETF approvals, the approaching halving cycle, and the potential interest rate cuts by the Federal Reserve. At the same time, the massive entry of institutional investors has also provided a tremendous boost.

The inscription ecosystem, especially represented by Ordinals, non-fungible tokens ( NFT ) and fungible tokens ( FT ), has not only injected new vitality into the Bitcoin ecosystem but has also influenced other public chains. Almost all mainstream public chains have developed their own inscription gameplay, and many existing projects have also seized this opportunity to rejuvenate.

Bounce: Bitcoin Ecosystem Project Auction and Layer 2 Plan

Bounce Finance, as a multi-chain supported auction-as-a-service ( AaaS ) protocol, provides comprehensive token issuance services for projects. The platform supports various types of auctions, including tokens, NFTs, physical collectibles, and advertising space.

Recently, Bounce has launched auctions for multiple Bitcoin ecosystem projects. These projects initially had a low valuation, but subsequent auctions allowed the use of previous project tokens as participation tools, resulting in good performance. Due to the important role of the native token AUCTION in the auctions, its price has also risen.

Taking the latest GoDID project auction as an example, GoDID is a decentralized identity (DID) market aggregator that provides services for multiple DID projects. Its token BDID's distribution plan includes: 20% to users who purchase lottery tickets for AUCTION, 40% to AUCTION stakers, 20% to stakers of the early project BitStable stablecoin DAII, and 5% to users participating in airdrop mining using MUBI, BSSB, AUCTION, WBTC.

In addition, Bounce also announced the BounceBit program, which is a Bitcoin Layer 2 solution based on Binance Bitcoin BTCB and AUCTION, expected to launch in 2024.

Uniswap Expands to Rootstock

As a leading decentralized exchange ( DEX ), Uniswap continuously launches new versions and expands to multiple chains.

Recently, GFX Labs deployed Uniswap V3 to the Bitcoin sidechain Rootstock through Oku, which is seen as Uniswap's expansion into the Bitcoin ecosystem. GFX Labs received funding from the Uniswap Foundation to build the trading front end Oku based on Uniswap V3. Oku features order books, price charts, trading records, limit orders, and more.

Rootstock(RSK) is a Bitcoin sidechain compatible with the Ethereum Virtual Machine(EVM), secured through merged mining, and has SBTC which is pegged 1:1 to Bitcoin. RSK adopts a joint guarantor model, managed by community-trusted entities to facilitate asset transfers between Bitcoin and RSK, providing additional security.

As of December 19, the liquidity on Oku reached $535,000.

NFT Market Magic Eden Expands Bitcoin Ecosystem

Magic Eden is known as the main NFT marketplace in the Solana ecosystem, featuring a user-friendly interface, low transaction fees, and high-speed transactions.

In March of this year, with the rise of Ordinals NFT, Magic Eden announced its expansion into the Bitcoin ecosystem, further solidifying its position in the multi-chain NFT market. Currently, NFTs from the Bitcoin ecosystem such as bitmap and Bitcoin Frogs are among the top traded on Magic Eden.

Nostr: The Combination of Decentralized Social Networking and Micro-Payments

Nostr is a decentralized social protocol aimed at establishing a global, decentralized, censorship-resistant communication network. In September this year, Nostr underwent the NIP-57 upgrade, which added a small payment feature called "Zaps," allowing users to make small tips or payments through the Nostr client.

Zaps are mainly implemented through the Lightning Network, making the process efficient and cost-effective. After the user initiates a Zap request in the Nostr client, if the recipient's Lightning wallet supports Zaps, the LNURL server will confirm the recipient's public key and provide the required invoice. Once the user completes the payment, the amount is directly transferred to the recipient's Lightning wallet.

Currently, the number of payments made by Zap has exceeded 50,000.

ALEX:B20 Exchange and Bitcoin Oracle

ALEX was originally a DeFi platform on Stacks, providing DEX, Launchpad, cross-chain bridges, staking, mining, lottery, and other functions. After the popularity of inscriptions, ALEX developed the B20 decentralized exchange specifically for BRC20 token trading and offers new users STX tokens as gas fees.

In addition, the ALEX project plans to launch the first Bitcoin oracle for BRC20 tokens, developed in collaboration with multiple parties. This oracle aims to verify each BRC20 event and update global balances in decentralized on-chain contracts.

The Debate of Inscriptions on Various Public Chains

After the concept of inscription became popular on Bitcoin, over 30 public chains have released or are preparing to release inscriptions. However, on smart contract chains, the significance of inscriptions is questioned. Taking Ethscriptions on Ethereum as an example, while it may reduce transaction costs, it could also introduce new security risks, and its functionality is not as flexible as traditional smart contracts.

Summary

In the development of the Bitcoin ecosystem, various projects have adopted different strategies: Bounce developed a unique auction model and plans to launch Layer 2; Nostr combines decentralized social networking with micro payments; ALEX is developing a BRC20 trading market and a decentralized Bitcoin oracle; Uniswap and Magic Eden are expanding their business into the Bitcoin ecosystem.

Inscription is widely used in various public chains, but it is more meaningful for non-smart contract chains like Bitcoin. For smart contract chains, inscriptions may reduce costs, but they also face challenges in terms of security and functional limitations.