Project Innovation Amidst the Prosperity of the Bitcoin Ecosystem and the Inscription Boom

In 2023, the mainstream narrative of the cryptocurrency world is shaped by the rise of Bitcoin and the booming development of the inscription ecosystem. The increase in Bitcoin's price benefits from multiple factors, including the prosperity of on-chain ecosystems, the anticipated approval of spot ETFs, expectations of halving, expectations of interest rate cuts by the Federal Reserve, and the large-scale entry of institutional investors.

At the same time, the inscription ecosystem represented by Ordinals has injected new vitality into the Bitcoin system and has quickly expanded to other public chains. Almost all major public chains have developed their own inscription gameplay, and many old projects have also taken this opportunity to rejuvenate.

Bounce: Bitcoin Ecosystem Project Auction and Layer 2 Planning

Bounce Finance, as a multi-chain supported auction-as-a-service ( protocol, has recently launched several auction events for Bitcoin ecological projects. These projects have a low initial valuation, and in subsequent auctions, previous project tokens can be used as participation tools, driving up the prices of related tokens, including Bounce's native token AUCTION.

Taking the GoDID project as an example, the distribution plan of its token BDID covers project token holders on multiple Bounce platforms, reflecting the mutually beneficial symbiosis within the ecosystem.

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

![Chasing the popularity of Bitcoin and inscriptions, how are these old projects "blooming anew"])https://img-cdn.gateio.im/webp-social/moments-b849d50fe71db05ed029c11bc01c5676.webp(

Uniswap Expands to Rootstock

The decentralized exchange giant Uniswap recently deployed its V3 version to the Bitcoin sidechain Rootstock through GFX Labs. GFX Labs, utilizing funding from the Uniswap Foundation, developed a trading front-end called Oku, which offers features such as an order book and price charts.

Rootstock is a Bitcoin sidechain that is compatible with the Ethereum Virtual Machine, ensuring security through merged mining and a joint guarantor model. As of December 19, the liquidity on the Oku platform reached $535,000.

![Chasing the popularity of Bitcoin and inscriptions, how are these old projects "innovating"])https://img-cdn.gateio.im/webp-social/moments-5d847d5faaaad831906d5821a4063ede.webp(

Magic Eden Enters 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, following the rising trend of Ordinals NFTs. Currently, NFT projects in the Bitcoin ecosystem, such as bitmap and Bitcoin Frogs, have shown outstanding trading volume on the Magic Eden platform.

Nostr Integration with Lightning Network for Micropayments

The decentralized social protocol Nostr underwent the NIP-57 upgrade in September this year, introducing a small payment feature called "Zaps". Users can use the Lightning Network through the Nostr client for quick and low-cost small tips or payments. Currently, the number of Zap payments has exceeded 50,000.

![Chasing the popularity of Bitcoin and inscriptions, how are these old projects blooming with "new flowers"])https://img-cdn.gateio.im/webp-social/moments-4cb0d8b560e6cb7dd34b97e9096eb23c.webp(

ALEX: BRC20 Trading Platform and Bitcoin Oracle

ALEX was originally a DeFi platform on Stacks and developed the B20 platform specifically for trading BRC20 tokens during the inscription craze. ALEX also plans to launch the first Bitcoin oracle targeting BRC20 tokens, aiming to achieve decentralized consensus for BRC20 indexing.

The Development of Inscription Ecosystems on Various Public Blockchains

The inscription technology has expanded to over 30 public chains, including Ethereum's ETHS, Solana's SOLS, Avalanche's AVAV, and more. However, some networks such as Arbitrum, TON, and IOST experienced brief outages during the minting process.

The Ethscriptions project on Ethereum demonstrates the application of inscriptions on smart contract chains. Compared to traditional smart contract transfers, Ethscriptions may achieve lower transaction costs by using calldata, but it may also face new security challenges and functional limitations.

![Chasing the popularity of Bitcoin and inscriptions, how are these old projects opening "new flowers"])https://img-cdn.gateio.im/webp-social/moments-59d8f4e8084d2b1453e0e2e2b99f2df9.webp(

Conclusion

In the booming development of the Bitcoin ecosystem, various projects showcase different innovative strategies. Bounce has launched a unique auction model and plans to develop Layer 2; Nostr combines decentralized social networking with micro-payments; ALEX is developing a BRC20 trading market and planning a decentralized Bitcoin oracle; Uniswap and Magic Eden are expanding their business into the Bitcoin ecosystem.

The widespread application of inscription technology has brought new opportunities and challenges to various public chains. For non-smart contract chains like Bitcoin, the significance of inscriptions is even more pronounced; while for smart contract platforms like Ethereum, inscription technology not only reduces costs but also introduces new security considerations and functional trade-offs.