Bitcoin ecosystem thrives, old projects radiate new vitality

The significant growth of Bitcoin and the flourishing of the inscription ecosystem have become the main topics in the cryptocurrency field this year. The rise in Bitcoin's price is attributed to multiple factors, including increased on-chain activity, expectations of a spot ETF, the approaching halving cycle, and the possibility of the Federal Reserve cutting interest rates. At the same time, the large-scale entry of institutional investors has also brought strong momentum to the market.

The inscription ecosystem, especially represented by Ordinals, non-fungible tokens (NFTs) and fungible tokens (FTs), not only injects new vitality into the Bitcoin ecosystem but also affects other public chains. Almost all mainstream public chains have developed their own inscription gameplay, and some older projects have also taken this opportunity to rejuvenate.

Bounce: Bitcoin Eco Project Auction and Layer 2 Plan

Bounce Finance, as a multi-chain supported auction-as-a-service ( AaaS ) protocol, has recently launched several auction events for Bitcoin ecological projects. These projects have a low initial valuation, and subsequent auctions can use tokens from previous projects for participation, thus performing well. Bounce's native token AUCTION plays the role of "golden shovel" in the auctions, which has also driven its price up.

Taking the recent GoDID project auction as an example, this project is a market aggregator for decentralized identity (DID). The token distribution plan for its token BDID includes: 20% to users who purchase lottery tickets for AUCTION, 40% to AUCTION stakers, 20% to stakers of the early project BitStable stablecoin DAII, and 5% to users participating in airdrop mining using MUBI, BSSB, AUCTION, WBTC.

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

Uniswap Enters Rootstock

As a leading decentralized exchange, Uniswap recently deployed its V3 version to the Bitcoin sidechain Rootstock through GFX Labs. This move is seen as Uniswap's expansion into the Bitcoin ecosystem. GFX Labs received funding from the Uniswap Foundation to develop the trading front-end Oku based on Uniswap V3, which features an order book, price charts, trading records, limit orders, and more.

Rootstock(RSK) is a Bitcoin sidechain compatible with the Ethereum Virtual Machine(EVM), ensuring security through merged mining with Bitcoin. RSK introduces a joint guarantor model responsible for managing asset transfers between Bitcoin and RSK, providing additional security for cross-chain operations.

Magic Eden Expands Bitcoin NFT Market

Magic Eden, as the leading NFT marketplace in the Solana ecosystem, announced its entry into the Bitcoin ecosystem in March of this year, aligning with the rising trend of Ordinals NFTs. Currently, NFTs like bitmap and Bitcoin Frogs are performing well in terms of trading volume on the Magic Eden platform.

Nostr: The Fusion of Decentralized Social Networking and Micro Payments

Nostr, as a decentralized social protocol, underwent the NIP-57 upgrade in September this year, introducing a small payment feature called "Zaps". This feature allows users to make quick, low-cost small rewards or payments through the Nostr client, primarily relying on the Lightning Network (. Currently, the number of Zap payments has surpassed 50,000.

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ALEX: BRC20 Trading Platform and Bitcoin Oracle

ALEX was originally a DeFi platform on Stacks, which developed the B20 decentralized exchange during the inscription craze, specifically for trading BRC20 tokens. B20 uses sUSDT as the base currency, which is the USDT cross-chain from the BNB chain to Stacks.

In addition, ALEX is developing the first Bitcoin oracle for BRC20 tokens. This work is being carried out in collaboration with BRC20 founder @domodata and major off-chain indexers like BestinSlot, OKX, Hiro, and Unisat. The oracle aims to verify each BRC20 event and update the global balance in decentralized on-chain contracts.

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The Wave of Inscriptions on Various Public Chains

The inscription technology has expanded to many public chains, including Ethereum's ETHS, Solana's SOLS, Avalanche's AVAV, etc. Some networks such as Arbitrum, TON, and IOST experienced brief downtime during the inscription minting process.

Taking Ethscriptions on Ethereum as an example, this inscription method may reduce transaction costs by using calldata and avoiding the storage and execution of traditional smart contracts. However, this approach may also introduce new security risks, especially when dealing with complex data structures or logic. Additionally, relying solely on calldata may limit some advanced features and flexibility of smart contracts.

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Conclusion

The development of the Bitcoin ecosystem is showing a trend of diversification. Bounce has launched an innovative auction model and plans to develop a Layer 2 network; Nostr combines decentralized social networking with micro payments; ALEX has developed a BRC20 trading market and is working on building a decentralized Bitcoin oracle; Uniswap and Magic Eden are expanding their business into the Bitcoin ecosystem.

The application of inscription technology on major public chains shows different characteristics. For non-smart contract chains like Bitcoin, inscription technology has brought a new way of asset issuance. However, on smart contract platforms like Ethereum, although inscriptions may reduce certain operational costs, they also face challenges related to security and functional limitations.