The BTC ecosystem technology is developing rapidly, with multiple expansion solutions showing potential.

Since the first quarter of 2024, although the speculative enthusiasm for the BTC ecosystem has cooled somewhat, progress on the technical front has been very rapid, especially in terms of programmability scaling solutions. This article will introduce several highly regarded BTC scaling solutions, including Fractal Bitcoin, AVM, OP_NET, BRC100, and programmable runes.

Fractal

Fractal is a scalable framework based on the bitcoin core client software virtualization, which improves the overall network performance by recursively creating a tree structure. It is fully compatible with Bitcoin but activates the op_cat operator, allowing for more logic to be implemented.

Fractal was developed by a certain team and is expected to launch its mainnet in September 2024. In its tokenomics, 50% is generated from mining, 15% is allocated to the ecosystem, 5% is pre-sold to early investors, 20% is distributed to advisors and core contributors, and 10% is used for establishing partnerships and liquidity.

Architecture Design

Fractal packages the Bitcoin Core client into a deployable and executable blockchain software package ( BCSP ), allowing multiple BCSP instances to run on the Bitcoin mainnet through recursive anchoring. It modifies the Bitcoin Core in several ways, such as reducing block confirmation time and increasing block size, to provide better performance and user experience.

In terms of cross-chain asset transfer, Fractal enables seamless transfer of assets between different layers. BTC and other mainnet assets can exist as wrapped assets on Fractal Bitcoin.

Security Guarantee

Fractal enhances security primarily through three aspects: introducing joint mining, allowing miners to allocate resources to different BCSP instances, and providing initial protection for newly created instances. These measures help to prevent potential attacks and enhance the robustness of the entire system.

AVM

AVM(Atomicals Virtual Machine) is the BTC smart contract implementation of the Atomicals Protocol. It creates a virtual machine that simulates BTC scripts, opening multiple raw operation codes of BTC, allowing developers to implement smart contracts through combinations of Bitcoin scripts.

The idea of AVM is to maximize the capabilities of BTC's original opcode. It achieves Turing completeness through a dual-stack PDA and runs in a sandbox that includes an indexer, instruction parser, and global state.

AVM is a framework that is applicable to almost any metadata protocol, requiring only minor adjustments to the indexer under the virtual machine. The AVM has currently released a test version.

OP_NET

OP_NET aims to introduce Ethereum-like smart contract capabilities to the Bitcoin network, while better aligning with the characteristics and architecture of Bitcoin. It provides a complete, compact, and user-friendly development library, primarily written in AssemblyScript.

Core Features and Characteristics

OP_NET retains the block consensus and data availability of Bitcoin, executing complex computations on Bitcoin blocks through the virtual machine (OP_VM). It supports multiple programming languages and utilizes Tapscript to enable advanced smart contract functionalities.

When users interact with the OP_NET network, they need to pay an additional fee. To expand the use of BTC in DeFi applications, OP_NET provides a Proof of Authority system that allows BTC to be wrapped as WBTC.

Ecological Project

The OP_NET ecosystem covers multiple areas including decentralized trading, lending, market making, liquidity provision, and cross-chain bridges, featuring projects such as Motoswap, Stash, Ordinal Novus, and Ichigai.

BRC100

BRC-100 is a decentralized computing protocol built on the Ordinals theory. By introducing new operations such as "burn" and "mint", it enables complex DeFi operations. Developers can expand more operators on the basis of the BRC-100 protocol.

Main Operations

BRC-100 provides operations such as mint2/mint3 and burn2/burn3, allowing tokens to be securely converted between the UTXO model and the state machine model. These operations permit the generation of new tokens, balance conversions, and the destruction of tokens.

expansion and compatibility

BRC-100 can enhance computing power and state transitions through extension protocols. All BRC-100 extension protocols are mutually compatible and support cross-chain operations. Currently, there are extension protocols such as BRC-101, BRC-102, and BRC-104.

ecological project

The BRC-100 ecosystem includes projects such as inBRC, 100Swap, and 100Layer, covering areas like market indexing, decentralized exchanges, and liquidity protocols.

Programmable Runes ( Protorunes )

Programmable runes are an extension layer of runes that allow the creation of programmable assets with runes. They can exist in UTXOs and support operations similar to AMM.

Proto-Runes Protocol

Proto-Runes Protocol is the main project for programmable runes, providing a framework for programmable runes. It implements DEX functionality similar to Uniswap, supporting atomic swaps of rune assets and the creation of liquidity pools.

Core Mechanism

The key mechanisms of Proto-Runes include Protoburn and Protomessage. Protoburn allows the conversion of runes into a form used by sub-protocols, while Protomessage is used to execute operational instructions within the sub-protocol.

Latest Developments

Recently, the first Protorune - QUORUM•GENESIS•PROTORUNE has successfully completed the Protoburn. This genesis Protorune is designed to serve as a public forum for the Protorune standard and can be integrated into the protocol to provide governance functions for project tokens.