Written by: Wu Hai, PANews
Looking back over the past six months, the Bitcoin Ordinals ecosystem has gone from its inception at the beginning of the year to vigorous development from March to May, followed by a calming of emotions. Market sentiment has shifted from the previously nailed-on prediction that Ordinals would be the engine of a new bull market to current skepticism and confusion.
However, a real fact is that the development of the Ordinals ecosystem has never stopped. Many new protocols and projects based on Ordinals have emerged during this period. For example, the newly launched brc420 and arc20 in the past two days have attracted widespread attention and discussion in the Ordinals ecosystem with opening prices more than 10 times higher than the cost price.
In this article, PANews will explain in detail the current development status of various new protocols in the Ordinals ecosystem and better ways to participate.
Brc20: Deploying token contracts on the Bitcoin chain, remaining active
On March 8, 2023, domo proposed the use of JSON data format for Ordinals inscriptions to deploy token contracts, mint coins, and transfer, giving birth to the Brc20 protocol. The first token in its ecosystem, ORDI, achieved a rise of over a thousand times relative to the cost price, propelling Ordinals into the spotlight.
According to Dune data, as of September 23, the Brc20 protocol has generated 28.6 million transactions, resulting in fees of 1590 bitcoins, totaling 42.4 million US dollars. Observing based on ORDI as an index, its peak daily transaction volume exceeded 100 million US dollars, and the current daily transaction volume has dropped to a minimum of 8 million US dollars.
Since its inception, the Brc20 protocol has been closely watched by the community, but there have been almost no technical updates or iterations. The only significant progress so far is the development of brc20-swap by unisat, which combines wallet, inscriptions, and trading markets in an effort to improve the current lack of liquidity for brc20 tokens.
Orc20: Making Brc20 more flexible, no further updates
Orc20 was created by OrcDAO with the aim of enhancing some key functions of BRC20, improving adaptability, scalability, and security, and eliminating the possibility of double spending.
Its official documentation mentioned that updates would be made to OIP 1-11 to improve the Orc20 protocol, but since late July, the official OrcDAO Twitter account has stopped updating, and there have been no further developments. According to Dune data, from its inception to silence, the Orc20 protocol has generated 370,000 transactions, consuming fees worth 24 bitcoins.
Bitmap: Bitcoin chain metaverse with over 20,000 addresses
The developer of the Bitmap protocol is blockamoto. The protocol aims to build a metaverse on the Bitcoin chain using Ordinals and Bitmap theory, allowing anyone to inscribe spatial assets of Bitcoin blocks, with a decentralized and fair distribution process.
After the protocol was launched, the official Ordinalswallet developed a map based on Bitmap for deduplication and inscriptions. Subsequently, developers built bitmap.land as a portal website for the Bitmap protocol, and there are also tools and documents like bitmap-directory. In addition, there are continuous projects based on the Bitmap protocol.
As of now, the incomplete statistics of the Bitmap map show a transaction volume of 120 bitcoins, with over 22,000 holding addresses. The community discussions are more rational, mainly focusing on how to expand and enrich the Bitmap protocol.
gBRC721: Optimizing block space, lack of follow-up
The gBRC721 protocol, also known as generative-brc-721, was developed by 0x Jerry 543, who is also the creator of the Bitcoin NFT project DogePunks. The protocol aims to save blockchain resources, achieve 50%-90% optimization of block space, and accommodate more creators to promote innovation.
The protocol gained attention due to the relative cost increase of the OrdiBots project. The total transaction volume of its representative project, OrdiBots, amounts to 37 bitcoins, with 550 holding addresses, and has not been displayed on the Magiceden frontend. Initially, the community's enthusiasm was extremely high, but due to the lack of follow-up and no further applications, the protocol and community have fallen silent.
Recursive inscription: Making the metaverse run on Bitcoin, currently bleak
Recursive inscription was proposed by Casey Rodarmor, the creator of Ordinals. The intention is to allow inscriptions to exceed the 4MB block size limit of the Bitcoin chain, enabling complex 3D video games to be fully inscribed on Bitcoin. This led the community to believe that smart contracts similar to ERC20 might be able to run on the Bitcoin chain, making scalability and interoperability on the Bitcoin chain possible.
Although market attention and sentiment are high, few developers have used recursive inscriptions to build projects, and those that have appeared are mostly improvements on existing projects.
In terms of transaction volume and increase, the representative Recursive Punks and Recursive Frogs have a combined volume of only 30 bitcoins. Currently, the community hardly mentions recursive inscriptions, and there are no ongoing projects.
Trac: Decentralized indexing for Ordinals, a rising star
The developer of the Trac protocol is Beny, aiming to solve the unresolved issue in the inscriptions ecosystem—decentralized indexing. Due to its innovative concept and alignment with community pain points, its governance token TRAC has performed extremely well in the secondary market, with a relative cost increase of over a hundred times, and a transaction volume of 2.1 million US dollars to date. Trac has also collaborated with projects such as Bitmaps and Inscribed Handles.
Subsequently, Beny developed the Tap protocol, an OrdFi-enabling protocol for Ordinals services. The protocol's tokens have different functions, including transfer confirmation mechanisms, batch transfers, and the ability to set token names from 3 to 32 characters, allowing developers to create their own tokens more flexibly. The representative token of this protocol, TAP, also has a decent over-the-counter price.
Last week, the Tap protocol introduced a new feature, "token-auth," which provides support for third-party authorization to send tokens from authorized wallets. This supports games, metaverses, token bridges, and cross-chain markets on the TAP protocol.
ORC-CASH: A token system like a cash system
The creator of the ORC-CASH protocol is Sonic, with the intention of implementing a token system on the UTXO network similar to a cash system. The first token of the protocol, OSH, rose to a high of 100 US dollars after inscription. Excluding the initial over-the-counter trading volume, the trading volume on the Magiceden platform is 10 bitcoins.
Observing from its inception, the developers of the ORC-CASH protocol have been actively developing and operating, proceeding in an orderly manner from indexing to market listing. The community's engagement is also decent, mainly discussing and exploring development, with occasional on-chain proposals for the community to raise and vote on. Recently, its creator, Sonic, also attended the 2049 conference in Singapore to exchange ideas with Ordinals ecosystem developers.
Brc420: Endowing inscriptions with royalty functions
Brc420 was created by Recursiverse during the era of recursive inscriptions. Brc420 defines more complex asset formats in a recursive manner and is completely open source, allowing anyone to create their own metaverse inscriptions. Additionally, Brc420 establishes a constraint relationship between usage rights and royalties based on individual inscriptions. When a user owns an inscription, they can allocate usage rights and set a price, which can incentivize more innovation in the Ordinals ecosystem.
The first experimental token of the Brc420 protocol has also been launched, and there is decent enthusiasm in the over-the-counter market. Its creator, Recursiverse, continues to expand its ecosystem and collaborate with numerous protocols and projects within the Ordinals ecosystem. According to official information, they have also sponsored the recent Ordinals Summit in Singapore.
Arc20: The simplest and most powerful way to create digital objects on Bitcoin
The Arc20 protocol addresses the issue of representing arbitrary fungible token assets on the Bitcoin blockchain. The ARC20 fungible token standard ultimately brought colored coins to Bitcoin and uses 1 satoshi to represent ownership units of deployed tokens. This means that the value of each token will never be less than 1 satoshi.
The project's Twitter account has been operational since the end of May 2023, but it was only discovered by the community and began minting tokens in the past two days. Due to the minting method of Arc20 protocol tokens being through GPU mining, there is a certain technical threshold required. Despite this, the community managed to complete the minting of the first token, ATOM, in just one day.
After the minting of ATOM, there was a flurry of over-the-counter trading. Its price opened at $30 per token, briefly paused at $50, then jumped to $100, and has now fallen back to around $80. Its widespread attention and fomo sentiment have revitalized the Ordinals ecosystem, which had been silent for a long time. Users have mentioned the Arc20 protocol on social media and various communities. Whether it can sustain operation or, like many previous protocols, experience a wave of popularity followed by silence, remains to be seen.
Conclusion
According to data analysis platform geniidata, as of September 23, there have been over 33.9 million inscriptions generated, with over 600,000 holding addresses, resulting in nearly 45 million transfers and transactions. According to Dune data, the fees generated by the Ordinals ecosystem have exceeded 2,000 bitcoins, equivalent to $53 million.
As mentioned above, the Ordinals ecosystem has gradually calmed down after experiencing peak attention and funding across the network. From an investment perspective, regardless of the outcome of each new protocol, they have all experienced a round of fomo after going live on the secondary market. Therefore, one can look for projects with new protocols, zero or low-cost inscriptions, enter at a low cost, and then sell chips in batches during the fomo period in the secondary market.
Furthermore, new protocols and projects in the ecosystem continue to emerge, with developers constantly working on improvements, and users showing keen interest and injecting funds into new protocols. In the long run, the Ordinals ecosystem is also worth paying attention to.
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