From Query to Understand: Open the Wealth Password of In_script_ions

TL；DR

Number the satoshi and use it as a basis for data storage and trading, endowing each satoshi with unique value and significance;

The core issue of inions is still the scalability of Bitcoin, and the essence is still the struggle between large and small blocks;

The Taproot upgrade of BTC has brought about a subtle change, which has once again brought attention to the BTC eco;

The projects related to inions cover tracks such as wallets, cross chains, trading markets, minting tools and data analysis.

Introduction

With the continuous development and innovation of the Bitcoin eco, a new concept is attracting widespread market attention - Ordinals.

The introduction of the Ordinals protocol has brought new application prospects to Bitcoin. Its core is to assign unique value and significance to each SATS by numbering it and using it as a basis for data storage and trading.

The working principle of the Ordinals protocol can be summarized as “numbering+inscribing.” It first ensures its uniqueness and irreplaceability by assigning a unique serial number to each satoshi. This serial number is like every smart ID card, it is proof of its existence in the Bitcoin eco. Then, the Ordinals protocol uses this serial number to attach any type of data (such as text, images, videos, etc.) to a specific device, a process known as “inscribing.”

The process of engraving is similar to creating a smart contract on the blockchain, where metadata and satoshi’s serial number are encoded and stored on the blockchain. Once the transaction is confirmed, the metadata and satoshi’s serial number will be permanently stored on the blockchain, becoming an immutable part.

In this way, each satoshi not only has a unique serial number, but also unique information and story, making it a new type of non-fungible token (NFT).

Is the Inion Garbage?

As early as the beginning of the month (December 6th), the post by Bitcoin core developer Luke Dashjr caused a huge shock in the inions market. Luke stated that Inion is exploiting a vulnerability in the Bitcoin core client Bitcoin Core to send spam messages to the blockchain. Since 2013, Bitcoin Core has allowed users to set additional data size limits when forwarding or mining transactions. By blurring its data into program code, the inion bypasses this limitation.

The author makes an inappropriate analogy, which is equivalent to the fact that WeChat red envelopes were originally transferred, but now every time I transfer 1 cent to you, the two of us insist on chatting through the notes on the red envelope. Although it is difficult to say that this is an exploit, it is highly likely to be abusive or even meaningless.

Moreover, normal Bitcoin does not support making NFTs, but it is achieved through this form of “transfer+note.” Meanwhile, by using Taproot technology, it bypassed the original upper limit of notes and increased it from a few bytes to a maximum of 512 bytes.

This will write a large amount of redundant junk information into the Bitcoin block, increasing the storage burden of the entire node. The core issue of inions is still the scalability of Bitcoin, and the essence is still the competition between large and small blocks. The inion is certainly driven by market demand, but Bitcoin is still a small cup. The inion is playing a tornado inside the cup, and squeezing it will inevitably result in normal trading being squeezed.

But in fact, blockchain itself is achieved through a large number of nodes, using consensus algorithms to jointly complete accounting. Some people also say that blockchain is redundant. The decentralization brought about by this redundancy is what some people hope for. Similarly, this redundancy brings some more interesting things to the Bitcoin eco, believing that incorporating collectibles into Bitcoin is not only interesting but also useful.

Although Luke Dashjr once believed that BRC-20 and the Inion protocol bypassed the data size limit of Bitcoin blocks and forcibly inserted a large amount of junk data into the blocks, this approach would cause an unnecessary burden on nodes as it would increase their network speed, bandwidth, and storage capacity expenses. If this situation continues for a long time, it will continuously reduce the degree of decentralization in Bitcoin networks.

But he also affirmed the view that Bitcoin Layer 2 is the new destination for BRC-20 and bluntly stated that it is not necessary to eliminate all inions in order to bring benefits to the Bitcoin network.

Insight into the Value of Inions

Last year, BTC’s Taproot upgrade brought about a subtle change, which once again brought attention to the BTC eco.

This upgrade has laid an important foundation for the development of BTC from financial attributes to adoption attributes. With the emergence of new protocols such as Ordinals, Drivechain, BitVM, and Taprot Asset, the adoption properties of Bitcoin have further developed.

The inion value of BTC shares similarities with the jewelry value of gold, both of which can be showcased and condensed into a partially separated aesthetic consensus. The similarity of this value form means that if you understand this logic, you will understand why the inion has recently regained its vitality after its seemingly brief appearance in March this year.

The uniqueness of inions lies not only in the various images or characters they currently carry, but also in the possibility of carrying more information in the future. These pieces of information may become new value anchors, just like the bowl used by Emperor Qin Shi Huang, which is not just an ordinary bowl, but also carries historical and cultural values. Therefore, the value of inions may far exceed that of BTC itself, as they may become new value anchors.

Selected Inion Projects

The projects related to inions cover various tracks such as wallets, cross chain, trading markets, casting tools, data & queries, etc. We have selected 5 projects that may become the next star track and share them with everyone. Non-investment suggestions are for reference only, and we are looking for infrastructure related to inions.

Unisat
Unisat is a non-custodial open-source Bitcoin Inion plugin wallet that supports Ordinals and BRC20, helping users store, mint, and transmit BRC20 tokens, including buying and selling BTC, NFT, domain names, and more. In addition, Unisat Marketplace is an Insights market on the Bitcoin chain under Unisat that is based on PSBT and supports BRC-20 assets. In November, it ranked fourth in the NFT market with a trading volume of $41 million.

BIIS
BIIS aims to create the ultimate integrated and convenient technology stack for BRC20 tokens, positioned as the “BRC Eco Toolbox” for developers and users. It aims to provide a comprehensive set of integration tools for project developers and users, including batch distribution and collection of BRC20 tokens, batch distribution and collection of NFT assets such as BRC-721, and other integration tools. In the future, a fully automated asset release platform will also be launched, Support multi-modal asset release modes such as Free Mint/AirDrop/IDO, and provide the project team with an engraved Dao voting to achieve automated project release and decentralized community governance.

MultiBit
MultiBit is a cross-chain protocol between BRC20 and ERC20, based on the BRC20 bidirectional cross chain bridge design, aimed at achieving cross chain transmission between BRC20 and ERC20 tokens.

GeniiData
GeniiData is an Ordinals eco data analysis platform that provides the popularity index and ranking data of BRC20 tokens, supporting users to capture real-time casting of hot inions and NFTs.

Meanwhile, it has launched the ORC-20 indexing service, which mainly displays information on ORC-20 token deployment, including maximum supply, current coin minting status, and whether it can be upgraded, ORC-20 token holder information, transaction records, and the ability to verify transaction status.

Magic Eden Bitcoin
Magic Eden Bitcoin is a Bitcoin eco NFT market launched in March this year, allowing users to list, purchase, and sell Ordinals. In addition, Magic Eden has also launched the Bitcoin Launchpad, aimed at helping creators directly launch the Ordinals protocol and create Bitcoin NFTs on Magic Eden Launchpad.

Conclusion

In the world of blockchain, new concepts are constantly being proposed, and the current inion race is like this, as if all public chains are beginning to “inion culture.”

We are in a field where wealth codes switch rapidly, and it is difficult for you to be distracted even for a second, because the next second someone may make a profit on a project you know but are not sure about. This kind of profit or loss effect attracts capital to continuously Flow into the inion eco, forming the Matthew effect, which makes more people flock to it.

In summary, although the emergence of inions has accelerated the development of the Bitcoin blockchain towards a state that has always been almost full, it may lead to increased congestion in the Bitcoin network and make the use of Bitcoin more expensive. But we should be more aware that the emergence of Bitcoin Ordinals has broken the traditional concept of NFTs, bringing new application prospects to the Bitcoin eco by endowing each individual with unique value and significance.

There are still some challenges at present, and we should believe that with the continuous progress of technology and the expansion of application scenarios, we have reason to believe that inions will play a greater role in the future and drive innovation and development of the entire Bitcoin eco.