The recursive inscription opens the era of BTC NFT 2.0, with broad prospects for innovative applications.

Recursive inscriptions have brought significant breakthroughs to the Bitcoin ecosystem, opening up vast space for the development of composability in the Ordinals protocol. As a standard for inscription parsing, recursive inscriptions allow for mutual referencing and interaction between inscriptions, greatly enhancing interoperability, programmability, and scalability.

The main characteristics of recursive inscriptions include:

1. By referencing the content of other inscriptions, the combination and interaction between inscriptions are achieved.

2. Keeping the size compact in text code form reduces costs.

3. Broke the 4MB size limit of Bitcoin blocks.

4. Injected more innovative possibilities into the Bitcoin chain.

The application prospects of recursive inscriptions are broad, with major innovation directions including:

1. Inscription decomposition and combination: Complex content can be split into multiple small inscriptions, which can be referenced and combined.

2. Bitcoin Music: Creating music through recursive referencing of audio clips.

3. Bitcoin Chain Games: Split game logic, materials, etc. into multiple inscriptions.

4. Generative Art: Creating by recursively combining different elements.

5. Decentralized Website: Split the website into multiple module inscriptions.

Currently, there are several innovative projects based on recursive inscriptions, such as:

1. 1Mask: A fully on-chain generated art project that proposed the BRC721Auto standard.

2. Orbinals: A celestial motion simulation based on the three-body problem.

3. OCM: The first 3D NFT project, achieving high-definition animated inscription.

4. BTC Music Generator: Generate on-chain music by inputting keywords.

5. BTC Chain Games: such as Snake, Link Link and other H5 mini games.

6. BTC PixelWar: The first BTC multiplayer game on the entire chain.

Recursive inscriptions bring infinite possibilities to the BTC ecosystem, with the potential to give rise to killer applications in areas such as generative art, blockchain games, and the metaverse in the future. However, it also faces rendering challenges as the levels of recursion and the number of references increase, requiring further technological breakthroughs. Overall, recursive inscriptions have opened the era of on-chain inscriptions 2.0, paving a new path for the development of BTC NFTs.