Bitcoin Ecosystem and Inscription Craze: The Innovative Path of Established Projects

The rise in the price of Bitcoin and the flourishing development of the inscription ecosystem have become the main topics in the cryptocurrency world this year. The increase in Bitcoin's price is attributed to multiple factors, including the prosperity of the on-chain ecosystem, expectations for a spot ETF, the approaching halving cycle, and the potential for the Federal Reserve to cut interest rates. At the same time, the large-scale entry of institutional investors has also provided significant momentum.

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 impacts other public chains. Almost all major public chains have developed their own inscription gameplay, and many existing projects have also seized this opportunity to rejuvenate.

Bounce: Bitcoin Ecosystem Project Auctions and Layer 2 Development

Bounce Finance, as an Auction as a Service (AaaS) protocol, provides comprehensive token issuance services for projects. The platform supports multiple blockchain networks, allowing users to create and participate in various types of auctions, including tokens, NFTs, and physical collectibles.

Recently, Bounce launched several auctions for Bitcoin ecosystem projects. These projects had a low initial valuation, but in subsequent auctions, tokens from previous projects can be used as participation tools, resulting in excellent performance. Bounce's native token AUCTION plays an important role in the auctions, which is why its price has increased.

Taking the latest GoDID project auction as an example, GoDID is a decentralized identity (DID) market aggregator that provides services for multiple DID projects. Its token BDID's allocation plan includes rewards for AUCTION purchasers, stakers, and previous auction project token holders.

In addition, Bounce also announced the BounceBit project, which is a blockchain solution designed specifically for the Bitcoin ecosystem and is planned to be launched in 2024.

Uniswap Expands to Rootstock

A well-known decentralized exchange recently deployed its V3 version to the Bitcoin sidechain Rootstock through Oku, which is seen as an important step for the exchange's expansion into the Bitcoin ecosystem. Oku is a trading front-end based on the exchange's V3 version, featuring an order book, price charts, trading records, and limit orders.

Rootstock (RSK) is a Bitcoin-compatible sidechain that supports the Ethereum Virtual Machine (EVM), securing its safety through merge mining with Bitcoin. RSK introduces a joint guarantor model, where trusted entities within the community are responsible for managing the asset transfers between Bitcoin and RSK.

As of December 19, the liquidity on Oku reached $535,000.

The Bitcoin Ecosystem Layout of the NFT Market

A leading NFT marketplace platform announced in March this year that it is expanding into the Bitcoin ecosystem, which is an important step in its multi-chain strategy. Currently, several Bitcoin ecosystem NFT projects such as bitmap and Bitcoin Frogs are among the top in trading volume on the platform.

Nostr: The Fusion of Decentralized Social Networking and Micropayments

Nostr is a decentralized social protocol that has gained support from one of the co-founders of Twitter. In September of this year, Nostr underwent the NIP-57 upgrade, adding a micro-payment feature called "Zaps" that allows users to make quick, low-cost tips or payments through the Nostr client.

Zaps are mainly implemented through the Lightning Network. After a user initiates a Zap request in the Nostr client, if the recipient's Lightning wallet supports Zaps, the payment process will be completed. Currently, the number of Zap payments has exceeded 50,000.

ALEX: B20 Exchange and Bitcoin Oracle

ALEX was originally a DeFi platform on Stacks, offering various functions such as DEX, Launchpad, and cross-chain bridges. During the inscription craze, ALEX developed the B20 decentralized exchange specifically for trading BRC20 tokens.

In addition, ALEX also plans to launch the first Bitcoin oracle for BRC20 tokens, collaborating with multiple industry participants to achieve decentralized consensus for the BRC20 index.

The Boom of Public Chain Inscriptions

The successful application of inscription technology on Bitcoin has led to imitation by other public chains. Currently, more than 30 public chains have released or are preparing to release inscription projects, such as Ethereum's ETHS, Solana's SOLS, and others. Some networks even experienced temporary downtime due to inscription minting.

However, on smart contract chains, the advantages and necessity of inscriptions are still under debate. Taking Ethscriptions on Ethereum as an example, while it may reduce transaction costs, it could also introduce new security risks, and its functionality is not as flexible as that of traditional smart contracts.

Conclusion

In the development of the Bitcoin ecosystem, various projects are seeking innovation. Bounce has launched a unique auction model and plans to develop Layer 2; Nostr combines social interaction with payment; ALEX has developed a BRC20 trading market and oracle; several trading platforms have also expanded their business into the Bitcoin ecosystem. Although inscription technology is widely used across various public chains, its value and risks on smart contract chains still need further evaluation.