A comprehensive asset HACD, integrating PoW, inscriptions, token exchange, and art generation protocols, quietly rose 25 times in a month on the new exchange Xeggex.
Author: Hacash DAO
In November 2023, Binance launched ORDI, triggering a continuous rise in the inscription asset. In February 2024, the ERC404 protocol was released, inspiring a rethink of NFT innovation. It can be said that the bull market in the Bitcoin ecosystem relies on inscriptions, while the bull market in the Ethereum ecosystem may rely on token exchange. However, little known to the public, in this bustling market, there is a comprehensive asset HACD that integrates PoW, inscriptions, token exchange, and art generation protocols, quietly rising 25 times on the new exchange Xeggex in a month.
However, HACD appeared in 2019, so what is the origin of this pioneer of inscriptions and tokens that has been around for nearly 5 years?
The full name of HACD is Hacash Diamond, and its concept comes from a section of the Hacash white paper proposed by an anonymous Bitcoin scholar and Austrian economist in 2018. Later, the white paper was implemented by community developers, and on May 16, 2019, the first HACD was mined, named NHMYYM, marking the birth of the industry's first encrypted inscription.
Tracing the history of encrypted assets, the appearance of HACD as the pioneer of inscriptions and tokens is not accidental.
Considered to be most likely Hal Finney, who proposed the concept of encrypted transaction cards in 1993, emphasizing the collection and trading value of encrypted strings, while implying that these strings must be generated through a certain PoW algorithm to ensure scarcity and value. The father of smart contracts, Nick Szabo, created Bit Gold in 1998, emphasizing the concept of generating value through computational power, but its fixed difficulty led to inflation and lack of interchangeability.
HACD creatively solved the inflation problem of Bit Gold by setting the mining difficulty to only increase and introducing a bidding auction mechanism, ensuring that the quantity produced per unit of time remains constant, thus ensuring the scarcity of this "encrypted gold." By introducing six-character inscriptions to increase uniqueness and collectible value, it achieved encrypted transaction cards.
It can be said that the various mechanism designs of HACD conform to the creation and imagination of several elder figures in the crypto punk community.
Understanding HACD from the perspective of BTC
Each HACD is calculated from 6 out of 16 specific English letters, without repetition, so there are about 16 to the power of 6 possibilities, with a total of approximately 16.77 million. The generation process is similar to Bitcoin, relying on computing power, but it is significantly different from the mining process of Bitcoin.
HACD is a native asset on the Hacash chain, but it does not serve as a block reward; the block reward is served by another currency, HAC, which is the first governance-free and oracle-free, fully decentralized stable purchasing power currency. The production of HACD is based on the computing power invested in every five blocks of Hacash. When there is no computing power input, HACD will not be produced. With each production of HACD, the difficulty of computing power will increase, only increasing and not decreasing. Unlike BTC, which adjusts difficulty every two weeks, which may increase or decrease.
In addition, HACD can produce a maximum of 58 per day. Theoretically, it would take 800 years to mine all HACD, but due to the continuously increasing difficulty, similar to gold, there is a total limit that can never be completely mined. The mining difficulty will grow to a level that exceeds Bitcoin at some point in the future, and it may even require global computing power to be unable to mine a single one. Bitcoin has a total of 21 million, with block rewards halving every four years, starting from 7200 BTC per day and ending in 2140, with a fixed production curve over time, unrelated to mining difficulty.
Miners participating in the production of HACD need to compete with other miners within a 5-block cycle by investing computing power and bidding with HAC. The highest bidder within the cycle can obtain the HACD, and 90% of the bid HAC is destroyed. When the market demand for HACD increases, the bidding cost of HAC will also increase, thereby increasing the production cost of HACD based on market demand. Currently, 52% of HAC has been destroyed due to the demand for HACD.
An interesting aspect of this auction process is that each HACD has a different artistic form. Only after the highest bidder within the cycle successfully packages the HACD can the scarcity of the different artistic forms of the HACD be known, similar to the process of opening a blind box.
In terms of market supply and demand regulation, HACD is more sensitive in adjusting production through continuously increasing difficulty and market demand, and can more accurately reflect the real market demand compared to BTC.
Four programmable protocols of HACD
Based on this superior output mechanism compared to BTC, HACD has inherent programmable properties and already has four programming protocols: Hacash native protocol, inscription protocol, art generation protocol, and engraving protocol. The exploration of each programming protocol for each HACD has just begun. Here is an example for each programming protocol of HACD:
Hacash native protocol supports Turing-complete programmability, meaning that any programmability on Hacash L1 can empower HACD, such as atomic transactions between HACD and HAC benefiting from Hacash's readable financial contracts.
The programmability of the inscription protocol is the symbol of HACD as an NFT. It is also the key to achieving token exchange without the need for smart contracts, as in ERC404. HACD can be listed on any centralized exchange, and the divisibility is determined by the centralized exchange. When HACD is withdrawn from the exchange to the on-chain wallet, it must be an integer number of HACD, and after successful withdrawal, different six-character inscriptions of HACD can be seen, without the need for contracts or consuming a large amount of gas fees.
The HACD art generation protocol is the visual symbol of HACD. Due to the PoW production mechanism, HACD has also created its own unique art form in the history of art generation: energy generation art. Each work is random and unpredictable, requiring computing power to generate, with over 16 million possibilities, and it will take multiple centuries to complete. The participants in this creation will come from different backgrounds around the world. Currently, HACD has three art generation forms, and the earliest HACD art generation work is called HIP-5 Diamond, with 9 shapes and 16 colors, 8 of which are irregular, with a 3% chance of being generated. HACD collectors are keen on collecting the 9 shapes and 16 colors, known as the diamond set. They also like to collect the color purity of ordinary diamonds, and the turnover of a green HACD pure diamond has reached 2 BTC.
The engraving protocol of HACD is very similar to BTC's ordinals protocol and can develop different indexing protocols. The fundamental difference is that Ordinal is based on Bitcoin's UTXO model, while HACD's engraving protocol is based on Hacash's account model. This means that the flexibility of HACD's engraving will be far greater than Ordinals, such as the issuance of tokens similar to BRC20. HACD's engraving protocol naturally supports advanced functions of so-called "smart inscriptions," such as destruction and stacking.
HACD's Four Programmable Protocols It seems that the four programmable protocols of HACD are independent, but they can be combined to create very innovative gameplay. For example, in the token race, HACD is not only the pioneer, but it can also achieve token exchange without relying on contracts. By combining the art generation and engraving protocols, HACD can create different art images and form their own NFT trading markets. Because HACD can also issue coins and form a coin trading market, and the underlying PoW NFT of HACD has a floor price, this creates a new concept of "a picture within a picture, a coin within a coin," which may guide a new direction for the currently hot token exchange race.
Why HACD is a Superior Appreciating Asset From the perspective of mechanisms and programmability, HACD has stronger scarcity and is more suitable as a cryptographic asset for wealth storage compared to BTC.
First, HACD's design surpasses the core mechanism of Bitcoin and achieves the goal of price stability and asset preservation through a unique economic model. Compared to Bitcoin's simple total supply limit design, HACD uses a mining difficulty mechanism that only increases and does not decrease, resulting in the currency supply per unit of time being able to automatically adjust according to market demand. This flexible supply adjustment mechanism mitigates market price fluctuations, making it more conducive to stable asset value storage.
Another prominent feature of HACD is its use of a dual-currency model. Each HACD is obtained through pure PoW mining and is confirmed on-chain by destroying another PoW coin, HAC, through bidding. At the same time, the mining difficulty of HACD continues to increase and never decreases, making it increasingly difficult to mine new coins over time. This difficulty adjustment mechanism continuously increases mining costs, further ensuring the scarcity and value storage performance of HACD.
Additionally, as the pioneer of inscriptions and tokens, each HACD has a unique inscription and different and overlapping art forms, further enhancing its scarcity and value. By using a combination of 16 specific letters to form identifying inscriptions and limiting the total supply, each HACD in the market has unique value. This personalized inscription design brings a gameplay similar to collectibles to the HACD market, giving specific HACD higher collectible value and further enhancing its attractiveness as a wealth storage asset.
Development Process of HACD Why did such a high-quality cryptographic asset remain dormant for many years and only be discovered by the market during the explosion of inscriptions and tokens? This can be traced back to the Hacash project itself. The currency theory of the Hacash project is too advanced, making it very difficult to understand, resulting in only a very small number of people understanding it, and with no founder or project party, there is no centralized capital force to drive its development. It can be said that it is due to its almost crypto-purist decentralized state that has led to an excessively slow overall development.
The author of Hacash disappeared after leaving the white paper in 2018, and the first HACD was not mined until May 16, 2019. In 2020, during the DeFi Summer and the prevalence of PoS, almost all attention was focused on the Ethereum ecosystem.
Even in 2021, when NFTs began to explode, HACD, as a classical inscription NFT, could only be traded over-the-counter due to its incompatibility with Ethereum technology. However, despite the active OTC trading volume, it could not settle on mainstream platforms that everyone is familiar with. It wasn't until January 2024, when HACD was crowdfunded by the community and listed on the Xeggex exchange and Coingecko, that this asset became known to a small group of people, who learned about the existence of this token trading asset. Coincidentally, the ERC404 token protocol also began to explode in February.
The HACD collector community has circulated the following four phrases: "The combination of BTC and Ordinals is moving towards the value storage of HACD," "Everyone who is bullish on BTC but missed out on BTC should have at least one HACD," "The unit price of all HACD will inevitably surpass BTC," "HACD is not only the pioneer of inscriptions and tokens, but also the ultimate pursuit of the inscription and token race. With the discovery and promotion of market value, it will be an untouchable leader in both races." These may seem like bold statements, but they are not baseless rumors.
This innovative asset from 2018 has already attracted a small amount of attention from teams and capital. Will it, like BTC, create unimaginable value as time passes? We look forward to more visionary individuals joining the development of the HACD asset and creating the next level of brilliance comparable to BTC.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
