The Thriving Development of the Bitcoin Ecosystem and Innovation of Old Projects

In 2023, the significant growth of Bitcoin and the rise of the inscription ecosystem became the main focus in the cryptocurrency field. The increase in Bitcoin's price is attributed to multiple factors, including the prosperity of the on-chain ecosystem, the potential approval of spot ETFs, the upcoming halving event, and market expectations of a possible interest rate cut by the Federal Reserve. At the same time, the large-scale entry of institutional investors has also provided strong momentum for Bitcoin.

The inscription ecosystem, especially represented by Ordinals, non-fungible tokens (NFTs), and fungible tokens (FTs), has not only injected new vitality into the Bitcoin ecosystem but also influenced other public chains. Almost all major public chains have developed their own inscription systems, and many existing projects have also taken this opportunity to rejuvenate.

Bounce: Bitcoin ecosystem project auction and Layer 2 development

Bounce Finance, as a multi-chain auction service platform, has recently focused on auctions for Bitcoin ecosystem projects. These projects start with a low initial valuation, but as the auctions progress, early project tokens can serve as participation tools for subsequent auctions, promoting project performance and increasing the price of the platform's native token AUCTION.

Taking the GoDID project as an example, its token BDID distribution plan includes 20% for AUCTION holders, 40% for AUCTION stakers, 20% for early project BitStable stablecoin stakers, and 5% for participants in airdrop mining of multiple tokens.

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

Uniswap Expands to Bitcoin Sidechain

The leading decentralized exchange Uniswap has recently deployed its V3 version to the Bitcoin sidechain Rootstock through GFX Labs' Oku. This move marks Uniswap's expansion into the Bitcoin ecosystem.

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

Magic Eden Enters the Bitcoin NFT Market

Originally focused on the Solana NFT market, Magic Eden announced in March of this year that it would expand into the Bitcoin ecosystem, following the rising trend of Ordinals NFTs. Currently, Bitcoin ecosystem NFTs such as bitmap and Bitcoin Frogs have shown outstanding trading volume on the Magic Eden platform.

Nostr: Combining Decentralized Social Networking with 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 is implemented through the Lightning Network, allowing users to make quick and low-cost tips or payments within the Nostr ecosystem. As of now, the number of Zap payments has exceeded 50,000.

ALEX: BRC20 Trading Platform and Bitcoin Oracle

ALEX was originally a DeFi platform on Stacks, and has now developed the B20 decentralized exchange, specifically for BRC20 token trading. Additionally, ALEX is developing the first Bitcoin oracle for BRC20 tokens, aimed at leading the decentralized consensus of BRC20 indexing.

Public Chain Inscription Trend

The inscription technology has expanded to over 30 public chains, including Ethereum's ETHS, Solana's SOLS, and Avalanche's AVAV. However, the issuance methods of certain inscription projects have sparked controversy, such as the minting event of INJS on Injective.

The Ethscriptions project on Ethereum demonstrates the application of inscriptions on smart contract chains. Compared to traditional smart contracts, Ethscriptions may offer lower transaction costs, but may also pose new security challenges and functional limitations.

Conclusion

The development of the Bitcoin ecosystem has attracted numerous innovative projects. Bounce has developed a unique auction model and Layer 2 plan; Nostr combines social interaction with payments; ALEX has launched the BRC20 trading market and oracle; Uniswap and Magic Eden have also expanded their business into the Bitcoin ecosystem. Although the application of inscription technology is widespread across various public chains, it is more meaningful on non-smart contract chains like Bitcoin, while on smart contract chains, its advantages and potential risks need to be weighed.