If you want to ask if there are any myths about sudden wealth in the currency circle recently, it must be the Inscription track. First, BRC-20 ORDI exploded thousands of times in one month, and then Ethereum Inscription increased 300 times in two weeks. There are many new concepts in this, and It's a recursive inscription and it's ESC20. There are so many of them. Many people are confused and can't tell them apart. Before they can figure it out, they get so mad that they can only break their thighs.
In the past two days, some friends who couldn't bear it came to me and asked me if this thing was valuable and whether they could accept it. In fact, I missed Bitcoin ordinarys at the beginning. I didn’t study at the time and couldn’t understand it. But some time ago, I still bought dozens of ETHs for self-defense. After a few days, I found that the price in the OTC group had increased by more than 200 times. I made a profit. After a year of pig trotter rice, I was shocked and quickly studied the inscription track thoroughly. Today, V Guest will have no reservations and explain clearly the past and present life, underlying technology and future thinking of Inscription Track. After listening to it, you must be half-Inscription OG.
Let’s get straight to the point, answer the question first, whether you can accept it or not. My answer is yes. At present, the Inscription track has just started, with a total market value of about 1 billion US dollars, and it is still in a blue ocean. If you want to defend yourself, you can pay attention to the leaders with strong consensus, such as $ordi and $eths.
These out-of-the-circle targets that have formed a consensus and have a certain market value can be regarded as blue-chip stocks of Inscription Circuit. If you feel that blue-chip imagination is limited and not satisfying, it doesn’t matter. Inscription Circuit’s protocol gameplay is updated very quickly, and there are new ones every week. New inscription protocols appear on the public chain, and the cost of casting the first assets issued by these inscription protocols is very low, and it is likely to become the next blue chip. If you grab it, you will earn at least ten times the profit.
It is estimated that many people are ready to make a move, but don’t get excited yet. The prerequisite for acquiring assets must be that you have a good understanding of the subject. So what exactly is an inscription, and what are the protocols and gameplay? Please listen to me carefully.
The concept of inscription was first proposed by the Ordinals protocol on December 14 last year. Briefly explained, the Ordinals protocol is a system for numbering the smallest unit of Bitcoin - satoshi. The total number of BTC is 21 million, so there are 2100 trillion in total. Satoshi, at the same time, the Ordinal protocol can also implant data into Satoshi. The process of implanting is called inscribe. The part of the data that is implanted is naturally called inscription. Satoshi carrying the inscription is generated. In order to achieve uniqueness and scarcity, my first reaction when I first heard about this agreement was that the smallest unit has become the new target of speculation. To a certain extent, it can be regarded as an expansion of the value of Bitcoin, and it is Carved face.
Where is the engraving?
When each Bitcoin transaction is uploaded to the chain, in addition to the most basic transaction metadata, the Bitcoin network allows you to submit a string of transaction notes with custom characters, which is the same as adding double notes to a bank transfer. principle. This transaction note field used to be mainly the "op_return" field, but its capacity was very small. After the Taproot upgrade, it can also be the transaction witness field. The witness field supports up to 4M of inscribed content instead of dozens of kb, which gives the engraving space to play.
So how to engrave it specifically?
Imprinting is done by sending the Satoshi to be imprinted into a transaction. After every Bitcoin transaction, an Unspent Transaction Output (UTXO) is generated, which is similar to a certificate proving your balance and is stored in Bitcoin online.
The Ordinals protocol allows you to attach your NFT information to UTXO, which is to engrave the NFT on your balance certificate. Of course, the data must be encoded into string form before it can be "carved".
Let's make a simple analogy.
For example, if you have 5 yuan in your pocket and you want to give me 4 yuan, according to the principle of UTXO, you have to put all 5 yuan on the table, give me 4 yuan, and give you the unused 1 yuan. It becomes your balance. Ordinals means that when you put the 5 yuan on the table and prepare to complete the transaction, you will engrave this note on the 1 yuan returned to you like a seal, and then you will have the 1 yuan. inscription.
In essence, the Ordinals protocol actually borrows the memory on the Bitcoin chain to record its own ledger and form a new consensus. This new consensus is not only based on the Bitcoin consensus, decentralized and cryptographically native, but also completes its own evolution. This is how parasites survive. This is also the ingenuity of Ordinals. It treats Bitcoin as a tool, and Bitcoin becomes the "hard drive" host for data storage, that is, the data availability layer. It is the serious consensus layer, completing the emergence of its own NFT. !
At this time, some people will be confused, is the inscription NFT or FT, that is, a homogeneous token? It is said to be an NFT. Why does Unisat have the number of tokens and why does it also exist on the exchange?
First of all, the inscription is NFT!
Both of these two are Bitcoin inscriptions. The satoshi on the left is engraved with a punk image, and the satoshi on the right is engraved with the four characters We11. Everyone was Satoshi before, and it was just a matter of time to dig out. One satoshi is equal to one satoshi. There is nothing wrong with homogeneous tokens, but now, after two satoshis are carved, they become unique. I am punk and you are loot. Now it is non-fungible. Of course I am punk. It's much more expensive than your loot gold.
If you are smart at this time, you will definitely think, if I engrave a punk image on a Cong now, will my net worth double? Probably not, unless you are the first publisher to deploy and engrave punk. Like traditional NFTs, the consensus of inscription is First is first.
If multiple people want to engrave the same picture on different inscriptions, they can indeed do so, but only the first inscription is valuable. At this time, the timestamp comes into play to determine whose inscription is the first. indivual.
In addition, the rarity of Satoshi is determined by the block position in which it was mined. The highest level is the first Satoshi in the genesis block, which is called the mythical Satoshi. This is just one, it’s worth a lot if you think about it, it has great collection value.
In summary, these characteristics are the characteristics of non-fungible tokens, so the inscription is an NFT. The biggest difference between it and NFT on Ethereum is that all data of NFT is stored on the chain. It is more decentralized, so it is more fundamental and sexier.
Now that we’ve talked about NFT, where did FT come from?
The most familiar token issuance standards are probably the classic ERC-20 and ERC-721 on ETH, which correspond to divisible tokens and non-divisible tokens respectively. These protocols are designed based on ETH’s own smart contracts. It is very difficult to issue tokens on the BTC chain without smart contract function. However, the emergence of the ordinals protocol has given everyone a new idea. Using a single satoshi as a carrier and an inscription as a mark, the combination of the two can generate a unique token. Unique and immutable token.
Suppose I want to issue a token named $MR.V with a maximum circulation of 1,000. Then I can directly use ordinals to engrave 1,000 satoshis with the characters MR.V. I can also engrave 1,000 satoshis on one satoshi. , 1000 is the maximum capacity of Ordinals for one inscription.
At the same time, according to the consensus of First is first, since it is 1,000, I only recognize the first 1,000 coins engraved with the MR.V characters as the tokens I issued. This problem will be solved.
Of course, in another situation, although the maximum issuance is 1,000, I adopted a casting method of engraving 1 $MR.V. I only minted 500, and the remaining 500 can be minted by anyone, then The 500 minted by others are also within the consensus range of "First is first". The subsequent $MR.V that exceeds the maximum circulation is not within the consensus range.
Therefore, according to the ideas given by Ordinals, the first BTC-based token protocol: BRC-20 turned out to be born, and the developer of the protocol, domo, used the BRC-20 protocol to issue the first Token-$ordi on the BTC chain. It’s the first four letters of ordinals. The initial casting cost was about 0.1U per satoshi, with a maximum of 17U. Now it has dropped to 7U, which is still a steady 70-fold increase.
Now OKX and KU COIN are on the spot, and trading is very convenient, but they cannot be minted and deployed and must be operated on the chain.
However, it will be a lot more troublesome to operate on the chain, which needs to be implemented through the ordinals protocol. Let’s take the inscription just now as an example: This is the meme token with the second largest market value in BRC-20: pepe, a sad little frog, among which
"p": Defines the protocol type. p: BRC-20 means that it is processed using the BRC-20 protocol, helping other systems to identify and handle BRC-20 events. In addition to the ancestor BRC-20, there are also .sats domain name protocol, ORC-20 protocol and so on.
"op": Define the event type, whether it is Deploy deployment, Mint casting or Transfer transfer.
"tick": defines the BRC-20 Token name, consisting of 4 letters.
"max": Defines the maximum supply of tokens.
"lim": Defines the maximum number of BRC-20 Tokens a user can obtain by casting an inscription. The pepe setting is 1000, so you can get up to 1000 pepe by casting a single inscription.
If you need any operation, just go to Ordinals and type it in this format. This is the most primitive operation. Now various application protocols are the same as AI. You don’t even need to engrave them yourself. Deployment, casting, transfer, one-stop service, very simple. .
The significance of the Ordinals protocol is far greater than bringing about the so-called Bitcoin NFT itself - it gives all Bitcoin enthusiasts the ability to freely give Bitcoin new meaning. Some people think that Bitcoin can be a carrier of art, and some people think that Bitcoin can issue coins with one click like the Ethereum chain... Everyone's different understanding will cause each Satoshi to be burned with different content. These contents are the diversity of Bitcoin value. Seed.
More importantly, Ordinals is the origin of the Inscription track, which allows the spark of Inscription to burn into every public chain. According to a research report by Galaxy, the Ordinals NFT market will reach US$4.5 billion by 2025, and the future of Inscription Track is worth looking forward to.
The next issue will bring the innovative development of inscriptions and future prospects!
