Bitcoin Ecosystem and Inscription Craze: How Old Projects Are Revitalized

Recently, the main focus of the cryptocurrency market has been on the rise of Bitcoin and the thriving development of the inscription ecosystem. The increase in Bitcoin's price is attributed to multiple factors, including the prosperity of the on-chain ecosystem, expectations of a spot ETF, the approaching halving cycle, and the potential interest rate cuts by the Federal Reserve. Meanwhile, the large-scale entry of institutional investors has also provided significant momentum for Bitcoin.

The inscription ecosystem, especially represented by Ordinals NFTs and FTs, has not only brought new vitality to Bitcoin but has also spread its influence to other public chains. Almost all mainstream public chains have developed their own inscription systems, and many existing projects have also revitalized themselves through this opportunity.

Bounce: Bitcoin Ecosystem Project Auction and Layer 2 Plan

Bounce Finance, as a multi-chain auction service platform, has recently launched several auctions for Bitcoin ecosystem projects. These projects have a low initial valuation, and subsequent auctions can use the tokens from previous projects for participation, which has led to good performance. This has also driven up the price of Bounce's native token AUCTION.

Taking the recent GoDID project auction as an example, the distribution plan for its token BDID includes 20% for AUCTION holders, 40% for AUCTION stakers, 20% for early project BitStable's stablecoin DAII stakers, and 5% for users participating in airdrop mining using MUBI, BSSB, AUCTION, and WBTC.

In addition, Bounce also announced the BounceBit program, which is a Bitcoin Layer 2 solution based on Binance Bitcoin BTCB and AUCTION, expected to launch in 2024.

Uniswap Expands to Rootstock

Recently, GFX Labs deployed Uniswap V3 to the Bitcoin sidechain Rootstock through Oku, marking Uniswap's expansion into the Bitcoin ecosystem. Oku is a trading frontend based on Uniswap V3, featuring an order book, price charts, trading history, and limit orders.

Rootstock is a Bitcoin sidechain compatible with the Ethereum Virtual Machine, ensuring security through merged mining, and has SBTC anchored 1:1 with Bitcoin. As of December 19, the liquidity on Oku reached $535,000.

Magic Eden Enters the Bitcoin NFT Market

Magic Eden, as the leading NFT marketplace in the Solana ecosystem, announced in March this year its expansion into the Bitcoin ecosystem, aligning with the rising trend of Ordinals NFTs. Currently, NFTs in the Bitcoin ecosystem such as bitmap and Bitcoin Frogs are showing impressive trading volumes on the Magic Eden platform.

Nostr: The Fusion of Social and Micropayments

As a decentralized social protocol, Nostr underwent the NIP-57 upgrade in September this year, introducing the "Zaps" micropayment feature. This allows users to make quick, low-cost small tips or payments through the Nostr client, primarily enabled by the Lightning Network. As of now, the number of Zaps payments has exceeded 50,000.

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. Additionally, ALEX plans to launch the first Bitcoin oracle for BRC20 tokens, aiming to lead the decentralized consensus of the BRC20 index.

The Development of Inscription Ecosystem of Various Public Chains

The inscription technology has expanded to numerous public chains, including Ethereum's ETHS, Solana's SOLS, Avalanche's AVAV, and more. However, on smart contract chains, inscriptions have their advantages and disadvantages compared to traditional smart contracts. Taking Ethscriptions on Ethereum as an example, it reduces transaction costs by using calldata, but may have limitations in functionality and security.

Summary

In the development of the Bitcoin ecosystem, various projects have demonstrated different innovative strategies: Bounce has launched a unique auction model and plans to develop Layer 2; Nostr combines social and payment functions; ALEX has developed a BRC20 trading platform and is preparing a Bitcoin oracle; Uniswap and Magic Eden have expanded their business into the Bitcoin ecosystem. Although inscription technology is widely used across various public chains, it holds greater significance for a non-smart contract chain like Bitcoin, while on smart contract chains, it is necessary to seek a balance between cost, functionality, and security.