Bitcoin ecosystem thrives, established projects rejuvenate

This year's mainstream topic in the cryptocurrency world revolves around the rise of Bitcoin and the booming development of the inscription ecosystem. The increase in Bitcoin's price is attributed to various factors, including the prosperity of the on-chain ecosystem, expectations of a spot ETF, the approaching halving cycle, and the Fed's potential interest rate cuts. At the same time, the massive entry of institutional investors has also provided strong momentum for Bitcoin.

The inscription technology, particularly represented by Ordinals, non-fungible tokens (NFTs) and fungible tokens (FTs), not only injects new vitality into the Bitcoin ecosystem but also influences other public chains. Almost all mainstream public chains have developed their own inscription applications, and many established projects have seized this opportunity to rejuvenate.

Bounce: Auction Innovation and Layer 2 Exploration

Bounce Finance, as a multi-chain auction service platform, has recently been active in the auction of Bitcoin ecosystem projects. These projects have low initial valuations, but tokens from earlier projects can be used in subsequent auctions, promoting healthy interaction between projects. This model has also driven up the price of Bounce's native token AUCTION.

Taking the GoDID project as an example, as a decentralized identity market aggregator, the distribution plan of its token BDID cleverly utilizes AUCTION and the tokens from previous auction projects, forming a mutually reinforcing ecosystem.

In addition to the auction business, Bounce also announced that it will launch BounceBit in 2024, which is a Bitcoin Layer 2 solution based on Binance Bitcoin BTCB and AUCTION, aimed at further expanding the functionality of the Bitcoin ecosystem.

Uniswap: Expanding to Bitcoin Sidechains

As a leader in decentralized exchanges, Uniswap is continuously exploring new directions for development. Recently, GFX Labs deployed Uniswap V3 to the Bitcoin sidechain Rootstock through Oku, marking an important expansion of Uniswap into the Bitcoin ecosystem.

Rootstock, as a Bitcoin sidechain compatible with the Ethereum Virtual Machine, ensures security through merged mining and introduces a joint guarantor model to manage cross-chain asset transfers. As of December 19, the liquidity on Oku has reached $535,000.

Magic Eden: Entering the Bitcoin NFT Market

Originally focused on the Solana ecosystem, the NFT marketplace Magic Eden announced in March this year that it would expand into the Bitcoin ecosystem. This move not only enriches Magic Eden's multi-chain layout but also provides a new trading platform for Bitcoin NFT enthusiasts.

Currently, the trading volume of Bitcoin ecosystem NFTs such as bitmap and Bitcoin Frogs ranks among the top on Magic Eden, demonstrating the platform's influence in the Bitcoin NFT market.

Nostr: The Fusion of Social Interaction and Micro Payments

Nostr, as a decentralized social protocol, introduced the "Zaps" micro-payment feature through the NIP-57 upgrade this September. This feature is primarily implemented via the Lightning Network, allowing users to make quick and low-cost micro-tips or payments within the Nostr ecosystem.

The payment process design of Zaps is simple and efficient, allowing users to easily complete payments through the Nostr client. As of now, the number of payments made through Zaps has exceeded 50,000, demonstrating users' positive acceptance of this feature.

ALEX: BRC20 Trading and Oracle Innovation

ALEX, as the main DeFi platform on Stacks, has found a new development direction amid the inscription craze. They have developed the B20 decentralized exchange specifically for BRC20 token trading and provide new users with STX tokens to pay for ecosystem gas fees.

In addition, ALEX plans to launch the first Bitcoin oracle for BRC20 tokens. This innovation aims to achieve decentralized consensus for BRC20 indexing by leveraging the programmability of Stacks and the ability to read Bitcoin states.

The Development of Multi-Chain Inscription Ecosystem

Inscriptions technology has also been widely applied on public chains beyond Bitcoin. Currently, more than 30 public chains have released or are preparing to launch inscription projects, such as Ethereum's ETHS, Solana's SOLS, Avalanche's AVAV, and others.

However, the application of inscriptions on smart contract chains has also sparked some discussions. Taking Ethscriptions on Ethereum as an example, although it may be more economical than traditional smart contract transfers, it may also introduce new security risks, and its functionality may not be as flexible as that of smart contracts.

Conclusion

The development of the Bitcoin ecosystem has driven innovation in multiple projects. Bounce has created significant economic benefits through its unique auction model; Nostr combines decentralized social networking with micro-payments; ALEX has developed the BRC20 trading market and plans to launch an innovative Bitcoin oracle; Uniswap and Magic Eden have expanded their business into the Bitcoin ecosystem.

The widespread application of inscription technology on major public chains demonstrates its potential, but its application on smart contract chains also requires weighing its advantages against potential risks. Overall, these innovations bring new vitality and possibilities to the cryptocurrency ecosystem.