15th Anniversary of Bitcoin White Paper Release, Overview of Ordinals Ecosystem

11/01/2023·1years ago

Fifteen years ago yesterday, Satoshi Nakamoto published the Bitcoin white paper 'Bitcoin: A Peer-to-Peer Electronic Cash System', marking the beginning of a new era in the information age.

Today, fifteen years later, driven by the anticipation of BTC spot ETF, BTC has experienced a sharp rise. In less than two days, it surged from less than $30,000 to $35,000, and its current price remains above $34,000. Meanwhile, Bitcoin miners' enthusiasm is soaring, and mining difficulty has reached a new all-time high.

Meanwhile, the Bitcoin second-layer ecosystem continues to develop. As one of the BTC second-layer networks, the Ordinals ecosystem has projects and tokens within this sector that are worth paying attention to amidst BTC's dominant upward trend.

Ordinals(ORDI)

Ordinals Inscription

Ordinals (ORDI) is the leading coin in the BTC second-layer ecosystem and the creator of the Ordinals ecosystem.

The Ordinals protocol is a method for creating encrypted asset content on the Bitcoin blockchain, introduced by Casey Rodarmor in January 2023. It allows data to be recorded on the smallest unit of Bitcoin, satoshi, which is called an inscription, similar to an NFT.

The act of creating inscriptions in the Bitcoin network is called "inscription", and the inscription itself is called "inscriptions".

BRC-20 Protocol

Based on Ordinals inscriptions, a unified protocol standard is established in JSON data format, and then written as inscriptions into the Bitcoin network, which can be used to issue fungible tokens. This JSON-formatted inscription is the BRC-20 protocol, and the fungible tokens issued in this way are BRC-20 tokens.

In JSON, the total quantity of tokens, deployment, issuance, and transfer are specified.

The first part, deploy, represents the deployment of a token named orid, with a total quantity of 21 million.

The second part, mint, represents minting, with a maximum of 1000 tokens minted each time.

The third part, transfer, represents the transfer of tokens.

Ordinalswallet

In addition to the inscription protocol, Ordinals has also developed the native wallet ordinalswallet. Similar to an Ethereum wallet, ordinalswallet is a non-custodial BTC wallet that allows users to view and store BTC and Ordinals NFT.

ORDI Token Ordinals deployed the ORDI token on March 8, 2023, with a total quantity of 21 million tokens. The highest historical price of ORDI reached $25. The total market value of ORDI is $107 million, ranking 260th among all cryptocurrencies.

Recently, with the rise of BTC, as the leader of the Ordinals ecosystem, the price of ORDI has performed well, with a 47% increase in October.

Unisat

UniSat is a lightweight wallet based on the Bitcoin network that supports the Ordinals protocol and BRC-20 token standard. At the time of writing, UniSat Wallet has over 300,000 users.

UniSat not only has a wallet product, but its main functions include:

Supporting users to create, mint, and trade NFTs and tokens on the Bitcoin blockchain.
Supporting the search for various information in the text content of inscriptions, including text.bitmpa.sats\unisat\rc-20
umber
ews.
Displaying a complete list of BRC-20 tokens, including deployment time, holder data, and transaction quantity. Wallet BRC-20 balance can be queried based on the address.
Supporting the trading market for BRC-20 tokens and collectibles.

Ordiscan

Ordiscan is an ordinal block explorer that not only supports inscription, BRC-20 assets, and collectible data, but also offers API tools for developers, which are currently in the testing phase.

Ordiscan shows a total of 35.71 million inscriptions, a total storage quantity of 13.4GB, and a total of 1318 BTC in mining fees.

BRC-20 Tokens

BRC-20.io data shows that there are currently a total of 213 BRC-20 tokens, with a total market value close to $12.9 trillion. The data can be used to see which BRC-20 tokens are popular.

SATS

SATS is currently the most sought-after and active BRC-20 token in the market, with over 36,000 holder addresses and over 21 million transactions, far exceeding other BRC-20 tokens.

The total quantity of SATS is 2,100,000,000,000,000, with a historical high price of over $0.00000003 and a current price near $0.000000027, with a growth rate of 132% in October.

On September 28, Unisat released BRC20-Swap and explained the reason for using SATS as gas.

Poloniex, BingX, and Bibox have listed SATS/USDT trading pairs. SATS saw a 107% increase in October.

VMPX

VMPX has an ecosystem activity second only to SATS, but with far fewer transactions and relatively few holders.

The total quantity of VMPX is 108,624,000, with a historical high price of over $0.37 and a current price of $0.031. VMPX was popular in May to July 2023.

As an earlier BRC-20 token, VMPX has been listed on many CEXs, including Gate, Poloniex, Bitget, and MEXC, among others. VMPX saw a nearly 30% decrease in October.

OXBT

OXBT is also a relatively active BRC-20 token, ranking fourth in transaction quantity and third in holders.

The total quantity of OXBT is 200,000,000, with a historical high price of about $0.26 and a current price near $0.012.

OXBT has been listed on two CEXs—AscendEX (formerly BitMax) and BitForex—and saw a 15% decrease in October.

Controversy

Collectibles stored in the Bitcoin network through inscriptions have a stronger collectible value. However, there is currently some controversy about the significance and prospects of BRC-20. Those in favor of BRC20 believe that it has positive significance for the Bitcoin network and ecosystem.

Regarding the doubts about BRC-20, first, SlowMist Technology pointed out that there may be security risks from minting BRC-20 tokens to conducting transactions. During the minting process, the security of the relevant BRC20 token minting platform is questionable, with relatively weak defense measures, making it susceptible to malicious attacks and code tampering, leading to asset theft during token minting. Regarding transaction methods, SlowMist Technology believes that both methods have security issues. One is to privately find a third party for trading, which easily encounters problems such as scammers and counterfeit coins; the other is to trade on dedicated trading platforms, but the security of these trading platforms cannot be guaranteed.

Second, the viewpoint represented by Haotian believes that BRC-20 violates the principle of decentralization. Because BRC20 essentially stores transactions through inscriptions. For example, if I have 10 ORDI, and I transfer 10 ORDI to Zhang San, I would write this behavior as an inscription. However, Li Si can also write an inscription claiming that I transferred 10 ORDI to him. These two inscriptions conflict because I only have a total of 10 ORDI. In this case, a centralized platform may be needed to determine which inscription is valid. If a small miner's fee is insufficient, it is likely to be squeezed out by a large holder with a higher miner's fee, leading to unfair factors.

On October 22, the NFT trading market Magic Eden announced the suspension of BRC-20 trading due to the risk of double spending caused by recent order issues on the X platform. Different markets are currently using different versions of ord, which index different inscription numbers. Before Magic Eden, OKX, and UniSat Wallet all used the same ordinal, there was a double spending risk in trading BRC-20.

Ordinals Protocol Upgrade

On October 24, Ordinals creator Casey Rodarmor merged the v0.10.0 update into the Ordinals code. According to BlockBeats research, the important features of this update include: batch inscription, adding metadata, inscription number endpoint, and remote inscription command.

In the batch inscription of inscriptions, multiple inscriptions can be placed in the same input at once, and the position of the inscriptions can be specified in the output. Adding metadata allows users to add meta-protocols to inscriptions, attach any type of information, and help indexers distinguish between different types of protocols. The inscription number endpoint allows visitors to obtain inscriptions by number in the URL. The remote inscription command inscribes assets on ordinals and sends the corresponding NFT to a remote inscription address for inscription.

BRC20-SWAP Testing

According to the official announcement from Unisat, BRC20-SWAP testing begins today. Currently, only whitelisted addresses can participate in the testing. The first tokens to be launched in BRC20-SWAP are as follows:

Conclusion

As a second-layer network ecosystem of BTC, the Ordinals ecosystem has not only successfully realized the issuance of collectibles and fungible tokens within the Bitcoin ecosystem, giving them unique real-world value. More importantly, the issuance, circulation, and trading of these collectibles and fungible tokens further enhance the demand for BTC, bringing more opportunities to BTC miners and benefiting the overall value of BTC.

However, most BRC20 tokens in the Ordinals ecosystem currently lack practical applications and comprehensive use cases.

Among them, ORDI, as the creator of the Ordinals protocol, has a certain real-world significance and market recognition. SATS, as the trading gas for Unisat's BRC20-SWAP, has a certain practical demand. With the strengthening of the global consensus on Bitcoin, the continuous development of the Ordinals protocol, and the upcoming launch of BRC20-SWAP, the Ordinals ecosystem as a second-layer network of Bitcoin may continue to be worth attention and observation.

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