The Prosperity of the Bitcoin Ecosystem and the Inscription Boom: The Innovative Path of Established Projects

The continuous rise of Bitcoin and the booming development of the inscription ecosystem have become major topics in the cryptocurrency world this year. Behind the rise in Bitcoin's price are 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. The large-scale entry of institutional investors has also provided strong upward momentum for Bitcoin.

At the same time, the inscription ecosystem represented by Ordinals has not only injected new vitality into the Bitcoin system but has also influenced other public chains. Almost all mainstream public chains have developed their own inscription applications, and many established projects have also taken this opportunity to rejuvenate.

Bounce: Innovation in Auction Models and Layer 2 Plans

Bounce Finance, as a multi-chain auction service platform, has recently launched several auction activities for Bitcoin ecosystem projects. These projects initially have low valuations, but as the auctions progress, the tokens from earlier projects can be used as participation tools for subsequent auctions, driving the performance of the projects and increasing the price of the platform's native token AUCTION.

Taking the latest GoDID project auction as an example, the distribution plan of its token BDID fully utilizes the platform ecosystem, including AUCTION holders, early project token holders, and other parties.

In addition, Bounce plans to launch a Bitcoin Layer 2 solution called BounceBit in 2024, aimed at further expanding the application scope of the Bitcoin ecosystem.

Uniswap: Entering Bitcoin Sidechain

The decentralized exchange giant Uniswap has recently deployed its V3 version to the Bitcoin sidechain Rootstock via Oku. This move marks an important expansion of Uniswap into the Bitcoin ecosystem.

Rootstock, as a Bitcoin sidechain compatible with the Ethereum Virtual Machine, ensures security through merged mining and a joint guarantor model. As of recently, the liquidity on Oku has reached over $500,000.

Magic Eden: Multi-Chain Layout of the NFT Market

Originally focused on the Solana ecosystem, the NFT marketplace Magic Eden announced in March this year that it would expand into the Bitcoin ecosystem. This move not only enriches its multi-chain strategy but also provides a new platform for Bitcoin NFT transactions. Currently, several Bitcoin ecosystem NFT projects are performing well in terms of trading volume on Magic Eden.

Nostr: A Combination of Social and Micro Payments

The decentralized social protocol Nostr underwent a significant upgrade in September this year, introducing a small payment feature called "Zaps." This function is realized through the Lightning Network, allowing 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: BRC20 Trading and Oracle Development

Originally a DeFi platform on Stacks, ALEX developed the B20 decentralized exchange in response to the inscription craze, specifically for trading BRC20 tokens. In addition, ALEX plans to launch the first Bitcoin oracle for BRC20 tokens, aiming to lead the decentralized consensus for the BRC20 index.

Inscription craze sweeps across major public chains

Inscription technology is not only prevalent on Bitcoin but has also expanded to numerous other public chains. Currently, more than 30 public chains have released or are preparing to release inscription projects. However, on smart contract chains, the significance and security of inscriptions remain controversial. Taking Ethscriptions on Ethereum as an example, while it may reduce transaction costs, it could also introduce new security risks.

Conclusion

In the wave of development within the Bitcoin ecosystem, various projects are seeking their own points of innovation. Bounce has created significant economic benefits through a unique auction mechanism, Nostr has organically combined social and payment functions, ALEX has made breakthroughs in BRC20 trading and oracles, while Uniswap and Magic Eden have expanded their business scope into the Bitcoin ecosystem. Although the widespread application of inscription technology brings new possibilities to non-smart contract chains, the application on smart contract chains still requires weighing its advantages and potential risks.