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How to play BRC-20?

veDAO研究院

23-05-01 10:55

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Original title: "How to Play BRC-20｜veDAO Research Institute"

Original source: veDAO Research Institute

BTC concept What are the cryptocurrencies? Perhaps the first thing that comes to your mind is the derivative currency based on the fork of the BTC ecology, such as BTD (Bitcoin Diamond), BTK (Bit King), BTF (Bit Faith), etc... This statement was not counted before this year. wrong. But this year, since the BTC ecosystem launched the Ordinals protocol, it is no longer accurate.

In the current BTC ecosystem, both tokens based on the BRC-20 standard and NFTs based on the BRC-721 protocol can be issued. Regarding the latter, veDAO Research Institute has already explained in many articles: "Understanding what is BTC NFT and the future in one article Potential | veDAO Research Institute"

The birth of the BRC-20 standard and the emergence of related Tokens mean that BTC is no longer simply used It is regarded as "the benchmark of the Web3 world, a beautiful but old antique." On the contrary, it really has the impetus for development and innovation. Up to now, the overall TVL of tokens issued based on the BRC-20 standard has reached about 62 million US dollars.

Now that related concepts are in the ascendant, we can't help asking: What exactly is the BRC-20 standard? How is it different from the ERC-20 standard? How does the Ordinals protocol differ from the traditional Omni protocol?

What exactly is the Ordinals protocol and the BRC-20 standard?

First we need to review the Ordinals protocol that was born earlier this year.

Ordinals is an NFT protocol based on the BTC network, designed to assign a unique identity to each satoshis (sat). Using Ord software, the protocol adds data to these sats and allows software users to track them based on a system of ordinal numbers. In other words, the Ordinal protocol expresses the smallest unit of bitcoin, sats, in the form of NFT, and gives sats a well-reasoned transaction value and collection value. When the smallest unit becomes a new hype target, to some extent, it can be regarded as an expansion of Bitcoin.

Since the birth of the Ordinals protocol, users can engrave information on the Bitcoin chain, including text/pictures/audio/video, thus creating a Bitcoin chain NFT on .

For example: the NFT numbered dd082adcb3aab2882185e3a2f927bbff53cf6ffe8ab472d57740ea9f95c0acdai0 is based on the state inscription of sats, the smallest unit of Bitcoin.

But it is worth noting that NFT can be obtained by filling different information based on sats, so when the information we fill has certain rules, or according to a unified standard To fill, is it possible to produce homogeneous Tokens on the BTC ecology? The answer is yes, after the community enthusiast @domodata proposed the first brc-20 standard, he also issued the first brc-20 Token as an experiment, namely ORDI, with a current market value of about 25 million and a total The quantity is 21 million, and the price is 1.2 US dollars (as of now, the ORDI floor price has risen to 2.83 US dollars, an increase of more than 100%). And this is also regarded as the prototype of BRC-20 development.

So, now we can make a conclusion about the BRC-20 agreement: based on the Ordinals agreement, according to a certain rule or order, based on the text type inscribed with the same form of expression Non-homogeneous Token. Although its essence is an NFT, it is no different from the ERC-20 standard Token in terms of expression, and it can be regarded as a curve to save the country to some extent.

Although DOM, the creator of the BRC-20 standard, has repeatedly emphasized that this is an experimental product, it is difficult to stop the upsurge in market sentiment and the influx of funds.

According to Dune Analytics data, Ordinals minted 193,063 pieces in a single day on April 23, setting the highest single-day casting record so far. On the 26th, the single-day casting and casting volume reached 151,000 pieces, which is the second highest casting volume record. Up to now, the total number of mints based on the Ordinals protocol has reached 2,426,808, generating a total of more than 213 BTC in fees, which is about 6.23 million US dollars.

According to the WeChat index data, on April 28, the search index for the term odri was 34091, an increase of 94.58% from yesterday; while the search index for the term Ordinals was 65702, an increase of nearly 30% from yesterday.

The high enthusiasm has brought about the implementation of demand scenarios. At present, the BTC ecology has produced more than 30 related applications. For this, "Bitcoin NFT Protocol Ordinals Ecological Summary | veDAO Research Institute" and "Inscription: 30 Most Potential BTC NFT Projects｜veDAO Research Institute".

There are two articles in detail. Not only that, because the current participation in BTC ecological projects requires complex pre-operations, because the demand for BTC ecological projects is also extremely high. Related requirements will also be online.

Here we are Two questions need to be considered: Why is the BRC-20 agreement so popular? And how do we get involved?

What are the advantages of the BRC-20?

In sharp contrast to BRC-20, one is the current mainstream ERC-20 protocol in the industry; the other is the traditional Omni protocol of BTC ecology.

First of all, we need to explain these two comparison targets.

ERC-20 protocol is ERC-20 is a homogeneous Token standard based on ETH ecology, in other words, they have a property that makes each Each token is identical (in type and value) to another token. For example, an ERC-20 token is like ether, meaning that a token is and always will be like other tokens.

Currently, because BRC20 itself is the characteristic of Sats inscribed information, BRC-20 itself does not have the ability to interact with smart contracts, and ETH-20 In contrast, BRC-20 Token can no longer be given a decimal point, nor can it be Burned and Locked, and it does not have functions such as approval or authorization.

These disadvantages have in turn become some advantages of BRC-20: the inability to interact with smart contracts means that the issuance of BRC-20 Token will not have The so-called reserved by project parties and VCs truly realize that everyone is an equal participant in the ecology. In addition, the core sats of BRC-20 can be regarded as the smallest unit of BTC. Therefore, the natural value of BRC-20 Token is directly full, even if the narrative of individual BRC-20 projects is insufficient, but the actual transaction "BTC "This description can also ensure that BRC-20 Token will not have the same risk of zeroing as ERC-20 and more ERC-20 side chain Tokens.

On the other hand, the Ordinals protocol, which is the source of the BRC-20 standard technology, has many advantages over the Omni protocol:

Bitcoin's Omni protocol and Ordinals protocol are two different protocols that are mainly used for the issuance and transfer of digital assets on the Bitcoin blockchain.

The Omni protocol is a digital asset protocol based on the Bitcoin blockchain. Its biggest advantage is that it can make full use of the security and decentralization of Bitcoin Features, realize the issuance and transaction of digital assets. The Omni protocol allows users to issue various types of digital assets on the Bitcoin blockchain, such as stable coins, Tokens, game coins, etc., and the issuance and transfer of these digital assets can be guaranteed by Bitcoin.

The Ordinals protocol is an extended Bitcoin protocol that allows users to issue replaceable digital assets on the Bitcoin blockchain, and exchange between. The Ordinals protocol adopts a new transaction structure that allows users to transfer digital assets in a manner similar to atomic swaps, thereby avoiding centralized exchanges and clearing agencies.

Therefore, although the Omni protocol and the Ordinals protocol are both used for the issuance and transfer of digital assets, they have different design ideas and application scenarios.

About the Omni protocol: The Bitcoin community proposed the Token issuance protocol very early. The Omni protocol development was relatively active in 2014. Several versions later, the software implementation of the protocol, Omni Core, also matured in 2014. The Token USDT based on the Omni protocol is the most influential and the only Token with a productive level in the Omni protocol. It was released in 2015.

Our most common understanding of the Omni protocol is that when CEX exchanges transfer tokens such as USDT, users can often choose ERC-20, matic, TRC-20 And Omni and other methods to transfer money, but because the transfer through the Omni protocol is extremely wear-and-tear and the transaction speed is very slow, it can no longer meet the needs of the current encrypted trading market, and few people will choose it. And because Omni itself is a dyed currency (its core idea is to divide the bitcoin address according to a certain size first, and then write the data into the bitcoin network. It is not as simple as using sats directly in the Ordinals protocol), which also makes Omni's Scalability is limited.

In addition, the introduction of the Omni protocol was too early, and in the hot ICO period of 2015-2017, the BTC ecosystem fell into a civil war of forks and expansions. Sufficient development time has been given that the Omni protocol has been dubbed: the right protocol at the wrong time. But no matter what, Omni has missed the opportunity, and now the rise of the Ordinals protocol has brought new growth momentum to the BTC ecosystem.

Having said so much, how should we participate in the BTC ecosystem?

How to play BRC-20?

At present, there are many cases on the Internet about how to purchase BRC-20 Token. The veDAO Research Institute will make a summary for you here:

According to the piggy rating content, users need to do the following:

Users want to buy BRC-20 ;Token:

1. First, you need to register the Unisat wallet and deposit enough BTC.

2. Then enter the ordinalswallet and link to the Unisat wallet.

3. Enter the brc-20.io website, select the inscription you want to buy, and pay attention to the price and quantity.

4. After the final selection, click Buy now to purchase, and pay in the wallet.

User wants to sell BRC-20 Token:

1. First you need to generate a transfer inscription, you can transfer as much as you want

2. After the generation is completed, wait for the confirmation on the chain. After the confirmation is successful, return to the OW wallet and drag it to the bottom. You can see the inscription just generated

3. Enter the price (total price) you want to sell, and then place a pending order.

The above schemes are for users to complete BRC-20 Token transactions through third-party services. If the user wants to complete it by himself through the protocol command, he can refer to the explanation of Zhihu user Wang Feng: the operation of brc20 is divided into Deploy, Mint and Transfer, that is, deploy, receive and transfer. For the user side, it is the casting of inscriptions .

Deployment:

{

"p": "brc-20",

"op": "deploy",

"tick": "ordi",

"max": "21000000",

"lim": "1000"

}

Cast Inscription , fill in the tick field to indicate the Token name, max indicates the supply, and lim indicates the maximum amount for each transfer.

Collect:

"p": "brc-20",

"op": "mint",

"tick": "ordi",

"amt": "1000"

}

Fill in the user name and the amount of amt to receive, the amt cannot exceed the maximum limit that can be received and the balance after deploying the inscription

Transfer:

"p": "brc-20",*

"op": "transfer",*

"tick": "ordi",*

"amt": "100",*

"to": "1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa"*

Fill in the number of token codes and the destination address

In addition, users can move to the video tutorial on how to buy/sell BRC-20 Token: https://youtu.be/ck7loCKK140

Following, veDAO Institute I will list some projects related to BRC-20 Token for everyone to participate in:

1.BRC-20 project summary website:https://brc-20.io/market

2. BRC-20 wallet:https://unisat.io/

3. Ordinals original wallet: https://ordinalswallet.com/wallet

4. Trading market: https://ordswap.io/

5. Mint tools:https: //looksordinal.com/

6. Browser:< a href="https://ordiscan.com/" target="_blank">https://ordiscan.com/

Summary

In general, BRC-20 has the following advantages:

1.BRC-20 Token is more valuable, almost no risk of zeroing

2.BRC-20 Token distribution is more fair, all participants are in the same The starting line

3. The potential market of BRC-20 Token is huge, with the opening of a new narrative, the BTC consensus is also the strongest consensus in the market

Compared with the "new wine in old bottles" of the current ETH ecological DeFi gameplay, the BTC ecology and the BRC-20 standard are new concepts in the industry, and it is easy to obtain market sentiment and the influx of funds.

But the industry has related concerns:

1. The threshold for user participation is relatively high: Whether it is cumbersome node construction or expensive BTC, it will isolate the entry of retail investors to a certain extent.

2. It is currently uncertain whether the Ordinals protocol is due to the early development or short-lived, and whether the industry will recognize BTC’s ecological expansion behavior. After all, whether it is based on the BTC ecological issuance NFT, or BRC-20 Token, itself is the use of sats, which can be regarded as a manual expansion behavior. Regarding the maintenance of BTC price after expansion, different people in the industry have different opinions.

3. In addition, in the early part of this year, the cost of Inscriptions (inscriptions) continued to climb due to the Bitcoin network. The BTC ecological content has experienced severe congestion in the memory pool, which has also been criticized by the industry.

4. On April 11, some Github users discovered a code loophole in the Ordinals protocol, which prevented more than 1,200 inscriptions from being verified. The vulnerability comes from the protocol's indexer function, which only counts inscriptions in the first input of transactions submitted to and including protocol version 0.5.1. When it came to whether the inscription needed to be corrected by changing the inscription, 67.5% of the 1,266 voters disapproved. The young Ordinals protocol also seems to be stuck in ecological governance troubles.

But in any case, after pre-preparation and risk prevention, the Ordinals agreement, and the earliest stage of BRC-20 Token as an emerging track, And it is one of the hottest hot spots in the current industry, and it is still necessary to participate.

About veDAO

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