What is Bitcoin Inscription?
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"Bitcoin Inscription" refers to the process of engraving content onto satoshis using the Ordinals protocol. The information written can include text, images, videos, audio, and more.
Common Bitcoin inscriptions are primarily divided into two categories: text-based inscriptions and image-based inscriptions, commonly referred to as BRC-20 tokens and Bitcoin NFTs.
1. A Brief History of Bitcoin Inscription Development
1.1 Ordinals Protocol
In the recent bull market, the surge in NFT popularity led developers to explore ways to release NFTs on the Bitcoin network. Due to the absence of smart contract support on the Bitcoin network, the direct issuance of NFTs faces limitations.
At the end of 2022, Bitcoin network developer Casey introduced the NFT protocol Ordinals on the Bitcoin mainnet. The protocol introduced the concepts of Ordinals and Inscriptions. The Ordinals protocol facilitates the issuance of NFTs on the Bitcoin network by embedding them onto the smallest unit of Bitcoin, satoshi, and associating a unique serial number (Ordinals) with each satoshi. This connection between satoshis and various forms of content, such as images, text, and videos, results in the creation of unique and irreplaceable NFTs.
The introduction of the Ordinals protocol has garnered market attention, prompting older NFT protocols to consider launching new projects on the Bitcoin network. Notably, the Yuga Labs team, renowned for the Bored Ape Yacht Club, has introduced a new project called TwelveFold on the Bitcoin network.
1.2 BRC-20 Standard
Based on the Ordinals protocol, developer Domo introduced the BRC-20 standard for issuing fungible tokens on the Bitcoin network. ORDI is the first BRC-20 token launched on the Bitcoin blockchain, with a total supply of 21 million.
The BRC-20 standard quickly gained traction on the market, resulting in the introduction of various BRC-20 tokens. Recently, several top exchanges have added BRC-20 tokens to their listings, further fueling overall market excitement.
1.3 Ethscriptions Protocol
Taking inspiration from the Ordinals protocol, Genius co-founder Tom Lehman introduced the Ethereum Inscriptions protocol, Ethscriptions, with the goal of lowering the minting costs of NFTs and advancing the development of the NFT space.
Contrary to expectations, this concept did not garner support from the community and various NFT projects. Nevertheless, a gameplay similar to BRC20 tokens persisted on Ethereum, and ETHS stands as the inaugural token of the Ethscriptions protocol.
1.4 Other Protocols
Despite the widespread use of the Ordinals protocol, it still has its drawbacks. In response to these limitations, new protocols such as Atomicals, Runes & Pipe, and Taproot Assets have been introduced. Alongside these protocols, several early projects have garnered market attention and interest in the current market trend.
2. Bitcoin Inscription Features
2.1 Non-Fungible: Once an inscription is made, others cannot add their own, ensuring each one is unique.
2.2 Relatively Fair: Participation is open to everyone without any reservations, a key factor contributing to the popularity of inscriptions.
2.3 First Come, First Served: Transactions with higher fees receive priority processing, which aligns with the logic of Bitcoin miners prioritizing transactions with higher fees.
2.4 Limited Quantity: The quantity can be restricted during inscription creation, and cannot be altered afterward.
2.5 Tamper-Proof: Bitcoin inscriptions are stored directly on the Bitcoin network, not in storage spaces like IPFS.
3. Disputes Surrounding Bitcoin Inscriptions
As the market demand for Bitcoin inscriptions rises, the debates surrounding them continue without cease.
Advocates argue that the introduction of inscriptions has not only raised transaction fees for Bitcoin miners but has also bolstered the overall security of the Bitcoin network. The recent market excitement surrounding BRC-20 tokens has coincided with a surge in Bitcoin network fees, signifying enhanced earnings for miners. At the same time, the higher miner earnings act as a magnet, attracting more miners and bolstering the robust security of the Bitcoin network.
Detractors argue that inscriptions have introduced a considerable amount of spam data, leading to "attacks" on the Bitcoin network. Additionally, they express concerns about the potential substantial risks associated with the centralized accounting method relying on indexers. Notably, Bitcoin Core developer Luke represents this opposing viewpoint.
Despite ongoing debates, market enthusiasm and fervor in the crypto community continue to thrive. The BRC-20 series tokens have witnessed considerable growth, and similar gameplays have extended beyond the Bitcoin network to other blockchain networks.
4. Current Popular Inscriptions on the Market
The inscription trend began on the Bitcoin network and later extended to various blockchains. After the widespread adoption of inscriptions, similar gameplays were successively introduced on blockchains such as Ethereum, Solana, Avalanche (AVAX), Polygon, BNB Chain, and others.
According to the latest trading market data, the floor prices for ETH and Facet inscriptions on the Ethereum network are 5.798 ETH and 0.778 ETH, respectively. Compared to the minting price of 1 USDT at that time, they have seen increases of over 13,000% and 1,700%, respectively.
The floor price for SOLS inscriptions on the Solana network is currently 74 SOL, with a minting price of approximately 5 USDT, achieving an increase of 1,100%.
The floor price for BNBS inscriptions on the BNB Chain network is currently 6.25 BNB, with a minting price of approximately 0.02 USDT, achieving an increase of over 76,000%.
The wealth effect generated by inscriptions has attracted many users, with increasingly professional teams and players entering the scene, competing in inscription minting using scripts and other methods. However, for average retail players, participating in the minting frenzy can be quite challenging. They are often left with the option to enter the secondary market.
In addition, tokens from the BRC-20 series have become a preferred choice for more retail investors. The recent achievements of top tokens such as ORDI and SATS have enabled numerous users to secure substantial profits.
5. How to Purchase BRC-20 Series Tokens
For regular players looking to buy associated tokens, the easiest way is to engage in trading on exchanges. Currently, the MEXC trading platform offers spot and futures trading for tokens like ORDI, SATS, PEPE, and more. Users are welcome to trade on the MEXC platform.
Let's use ORDI spot trading as an example to show how this is accomplished.
Open the MEXC App, tap the search bar at the top of the homepage and enter "ORDI." Select the ORDI/USDT trading pair under the "Spot" category to enter the K-line chart page. Tap on [Buy], then select [Market] as the order type and input the "Amount" or "Total" value. Finally, tap [Buy ORDI] to complete the order.
You may also choose to buy ORDI through spot trading using a limit order or stop-limit order.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.