Original article: "Why are you not optimistic about the new Bitcoin NFT protocol Bitcoin Stamps?"

Written by Cookie, BlockBeats

Recently, the new Bitcoin NFT protocol Bitcoin Stamps has received some attention for its "more permanent storage". Unlike the Ordinals protocol, which stores data in "witness data", Bitcoin Stamps uses the Counterparty protocol, which was born in 2014 and provided support for "Rare Pepes", to broadcast the image data inserted into the UTXO output in base64 encoding to the Bitcoin network, making it impossible for the full node to filter the image data. (Recommended reading: "Bitcoin NFT New Outlet is Coming, a Brief Analysis of the BTC Stamps Protocol")

Although the number of newly added NFTs of Bitcoin Stamps, a new Bitcoin NFT protocol, has exceeded that of the Ordinals protocol recently, and many Bitcoin NFT players have already "defended themselves", the author is not optimistic about the prospects of Bitcoin Stamps.

Why not Bitcoin Stamps?

expensive

I uploaded a 254-byte Punk image to UniSat and stampchain.io respectively. The price of burning the same image differed by more than 10 times.

UniSat(Ordinals) stampchain.io(Bitcoin Stamps)

The "witness discount" of the 2017 SegWit upgrade allows Bitcoin NFTs burned through the Ordinals protocol to get a 75% discount compared to the Bitcoin Stamps protocol, but even if we multiply the UniSat burning fee by 4, it is only about $24, while the Bitcoin Stamps protocol charges a handling fee of about $85. What is the extra part? The author is also in the dark for the time being...

Of course, we can also choose not to use the "official proxy" service provided by stampchain.io, and choose to use Counter Wallet for self-service burning. However, the self-service process is quite cumbersome, and you need to install and configure Counter Wallet, convert the image into a Base64 string... In addition, the high fees charged by stampchain.io as an "official proxy" also make the Bitcoin NFT community feel disgusted. After all, in the Bitcoin NFT circle without a royalty mechanism, many players and even project parties are "generating electricity with love", and the spirit of Bitcoin's free and fair nature is the cornerstone of establishing good trust between Bitcoin NFT players and project parties.

Insufficient degrees of freedom

The size of Bitcoin NFTs burned through the Ordinals protocol is limited only by the 4MB size of the witness data field. The data types that can be burned are MIME types, from text, pictures, animated images to music, videos, and HTML files. The 466th Bitcoin NFT burned is the classic game "Doom" by id Software.

Inscription#466"Doom", I have completed the game

Bitcoin Stamps excludes MIME types, and image data is limited to jpg, png, gif, and webp formats, with a size limit of 7 KB. Due to the size limit and the cost issue mentioned above, the official recommendation for uploading files is 24*24 pixels, 8-bit color depth png and gif files.

Officials say this limitation is well suited to pixel art. Well, compared to Ordinals, it does feel like painting on a tiny stamp... But since there is a larger "canvas" like Ordinals, why use Bitcoin Stamps?

In terms of "permanence", did Ordinals really lose?

The Bitcoin Stamps protocol encodes the binary content of the image into a base64 string and inserts this string into the "Description" field and inserts the data into the transaction output in blocks, making the image data "basic block data" and thus unable to be filtered by the full node.

The Ordinals protocol inserts data into the "witness data" section, and full nodes can choose to discard the "witness data". In the article "Bitcoin NFT Development in Progress: Ordinals Protocol, FOMO and Debate", the author mentioned that Bitcoin Core Developer Luke Dashjr quickly developed a patch for miners to screen and filter transaction broadcasts containing Bitcoin NFTs created by the Ordinals protocol.

This is a technical decision on the surface, but it is actually a market (miner) decision. At present, the Ordinals protocol is booming, with large NFT markets such as Magic Eden entering the market, and top IRL brands such as Bugatti deciding to issue NFT series through the Ordinals protocol. Will we really see the full nodes of the Bitcoin network reach a consensus to resist the Ordinals protocol?

According to @smyyguy, only 0.3% of miners’ revenue in March came from the Ordinals protocol. The Ordinals protocol is still very young, and who knows if it will really develop to affect the operation of the Bitcoin network, and who knows if the impact will be good or bad... Conclusion

More expensive, less freedom, and a "permanent advantage" that only exists at the narrative level are the reasons why I am not optimistic about the Bitcoin Stamps protocol. Although the number of new Bitcoin Stamps burnings has exceeded that of Ordinals in recent days, after the "self-defense craze" is over, the Ordinals protocol will most likely regain the upper hand. After all, the supporting infrastructure of the Ordinals protocol has developed rapidly, and many blue-chip projects have already occupied a position in the Ordinals ecosystem. The protocol itself has even been forked to Litecoin and Dogecoin. These are not comparable to Bitcoin Stamps, and it is difficult to catch up due to its own technical limitations.