Bitcoin Ecosystem Risks and Opportunities (Part II)

Bitcoin Risks and Opportunities

Last time we mainly talked about the BRC-20 and ORC-20 standards. In addition to these, there is also a bitcoin NFT standard similar to Ethereum’s ERC-721: BRC-721.

Compared to NFTs minted with Ordinals, BRC-721 introduces a new field that defines collections. This makes bitcoin NFTs minted with BRC-721 more similar to Ethereum’s ERC-721 NFTs, which is more in line with the habits of Ethereum NFT users. However, in terms of data storage, it seems that it is still witness data, so there are still hidden dangers.

For these new standards and their tokens, especially the BRC-20 and ORC-20 standards and tokens, the support of major exchanges is unusually positive and rapid.

Not long ago, a report on various standards in the bitcoin ecosystem was published. This report not only mentioned BRC-20 and ORC-20, but also mentioned another token standard, SRC-20.

Perhaps because BRC-20 has occupied a dominant advantage in timing and location in China, most domestic players and several major exchanges mainly focus on BRC-20, and although SRC-20 is occasionally mentioned, it has not caused much reaction.

However, when I browse overseas communities, I find that SRC-20 is obviously more popular overseas, not only not inferior to BRC-20, but even surpassing it to a certain extent. As for ORC-20, it has relatively low attention.

Like BRC-20, SRC-20 is also a standard for issuing homogeneous tokens, and it is based on a new STAMPS protocol. Based on this protocol, homogeneous SRC-20 tokens and non-homogeneous tokens NFT can be issued. These NFTs are called Bitcoin Stamps.

The biggest difference between SRC-20/Bitcoin Stamp and BRC-20/Ordinals NFT in terms of technology is that the latter stores data in witness data, while the former stores data directly in transaction data. Technically speaking, the former seems to be more secure than the latter.

In addition, there are two special points about Bitcoin Stamps:

One is that it is more similar to Ethereum’s ERC-1155 than ERC-721.

Second, it is based on a classic bitcoin protocol called CounterBlockingrty that was born in 2014. Because there is such an inheritance relationship in technology, the transactions of Bitcoin Stamps currently need to be completed on CounterBlockingrty.

Regarding CounterBlockingrty, I have introduced it in a previous article. It has issued the homogeneous token XCP and the very classic early Bitcoin NFT – Rare Pepe. The issuance method of Rare Pepe is very similar to ERC-1155 (I even suspect that the founder of ERC-1155 was inspired by Rare Pepe to invent this standard). And now the trading method of Bitcoin Stamps is exactly the same as Rare Pepe.

These characteristics make many early Bitcoin players think of Rare Pepe when they see Bitcoin Stamps. And these active old players are now actively joining the Bitcoin Stamp ecology, creating various NFTs.

The NFTs they create are clearly more in line with the style and characteristics of old players – bolder, more exaggerated, and more geeky.

In fact, the inventor of Bitcoin Stamps “Mike in SBlockingce” himself is an old player and geek in the Bitcoin community, and he has always been paying attention to the development of the Bitcoin ecology. In the SRC-20 community, you can often see Mike in SBlockingce personally giving explanations and answering questions to novice users, revealing some technical progress and status.

Although SRC-20/Bitcoin Stamps have their own advantages, they also have their own disadvantages – that is, the minting cost is high and the related infrastructure is far less than BRC-20: for example, SRC-20 tokens do not yet have trading tools, and the trading method of Bitcoin Stamps is too old-fashioned and troublesome for many users who have only used Ethereum.

However, overseas players seem to be very tolerant of the disadvantages of SRC-20/Bitcoin Stamps, and value their advantages in data immutability and non-tampering.

In addition, more importantly, a group of overseas geeks, including Mike in SBlockingce, are developing related technical facilities intensively, hoping to quickly make up for these shortcomings.