The Prosperity of the Bitcoin Ecosystem and the Inscription Boom Trigger Innovations in Established Projects

In 2023, the significant rise in Bitcoin prices and the thriving development of the inscription ecosystem became the main focus in the cryptocurrency field. Multiple factors support the upward trend of Bitcoin, including increased on-chain ecosystem activity, expectations of spot ETF approvals, the approaching halving cycle, and the possibility of interest rate cuts by the Federal Reserve. At the same time, the active participation of institutional investors also provides strong momentum for Bitcoin.

Inscription technology, especially represented by Ordinals, has injected new vitality into the Bitcoin ecosystem and has also influenced the spread to other public chains. Currently, almost all mainstream public chains have developed corresponding inscription applications, and many established projects have also revitalized themselves through this opportunity.

Bounce Auction Platform Expands Bitcoin Ecosystem

Bounce Finance, as a one-stop token issuance service platform, has recently launched multiple auctions for Bitcoin ecosystem projects. These projects have a lower initial valuation, and subsequent auctions allow participation using tokens from previous projects, leading to good performance. The native token AUCTION of Bounce plays an important role in the auctions, driving its price upward.

Taking the GoDID project as an example, as a decentralized identity market aggregator, its token BDID distribution plan fully utilizes the resources of the Bounce ecosystem. In addition, Bounce has also announced that it will launch BounceBit in 2024, which is a Layer 2 solution designed specifically for the Bitcoin ecosystem.

Uniswap Enters Rootstock

Recently, GFX Labs deployed Uniswap V3 to the Bitcoin sidechain Rootstock through Oku, marking Uniswap's expansion into the Bitcoin ecosystem. Oku, as a trading front-end based on Uniswap V3, provides features such as an order book and price charts, enriching the user trading experience.

Rootstock, as a Bitcoin sidechain compatible with the Ethereum Virtual Machine, ensures security through merged mining and introduces a joint guarantor model to manage cross-chain asset transfers. As of mid-December, liquidity on Oku has reached $535,000.

Magic Eden Expands Bitcoin NFT Market

Magic Eden, as the leading NFT marketplace in the Solana ecosystem, announced its expansion into the Bitcoin ecosystem this March, in line with the rising trend of Ordinals NFTs. Currently, NFTs in the Bitcoin ecosystem, such as bitmap and Bitcoin Frogs, are performing impressively in terms of trading volume on the Magic Eden platform.

Nostr Protocol Integration with Lightning Network Payments

Nostr, as a decentralized social protocol, introduced the "Zaps" micropayment feature through the NIP-57 upgrade in September of this year. This feature primarily leverages the Lightning Network, enabling users to make quick and low-cost tips or payments within the Nostr ecosystem. Currently, the number of Zap payments has exceeded 50,000.

ALEX Expands BRC20 Trading and Oracle Services

ALEX, as a DeFi platform on Stacks, has developed the B20 decentralized exchange amidst the inscription craze, focusing on BRC20 token trading. The platform also offers STX tokens to new users to pay for ecosystem gas fees. Additionally, ALEX plans to launch the first Bitcoin oracle for BRC20 tokens, aimed at achieving decentralized consensus for the BRC20 index.

The public chain inscription ecosystem is flourishing.

The success of inscription technology on Bitcoin has inspired other public chains to follow suit. Currently, more than 30 public chains have released or are preparing to launch inscription projects, such as Ethereum's ETHS, Solana's SOLS, etc. However, the minting process has also caused brief outages in networks like Arbitrum, TON, and IOST.

The Ethscriptions project on Ethereum showcases the characteristics of inscriptions on a smart contract chain. Compared to traditional smart contract transfers, Ethscriptions may have lower transaction fees, but may also face security risks and functional limitations.

Conclusion

The development of the Bitcoin ecosystem has sparked innovation in multiple projects. Bounce has launched a unique auction model and plans to develop Layer 2; Nostr combines social and payment functionalities; ALEX expands BRC20 trading and develops oracles; Uniswap and Magic Eden have extended their businesses into the Bitcoin ecosystem. Although the application of inscription technology is widespread across various public chains, its significance is more pronounced on non-smart contract chains, while on smart contract chains, it requires weighing cost advantages against potential risks.