In 2023, bitcoin inscription has garnered immense attention in the crypto space, sparking widespread debate over whether it’s another technology hype or a valuable innovation. In this article, I will present some facts to deepen your understanding of this emerging concept.
Embedding Of Unique Data Into Blockchain
In early 2022, the blockchain realm witnessed a groundbreaking development: Bitcoin
BTC ordinals. This innovation transformed Bitcoin’s blockchain, introducing a method for creating non-fungible tokens (NFTs) by directly inscribing data like text, images, and videos onto the chain. Think of it as etching treasured texts into limited number of timeless bronzes – that’s the essence and allure of blockchain inscriptions.
This concept quickly spread to Ethereum
ETH and other Ethereum Virtual Machine (EVM)-based chains, where users, attracted by low costs, began inscribing data within transactions. This technique, mirroring the success of Ethereum Request for Comment 20 (ERC-20) tokens, is gaining traction on various chains, including Solana
SOL and Avalanche
AVAX , heralding a new era of digital asset creation and management.
Individual’s Access To Low-Cap Crypto Assets
The discussion about Bitcoin inscriptions centers on the fairness and transparency of how these assets are issued. While not perfectly equitable, they offer a more transparent alternative compared to other methods in the digital asset ecosystem, thus drawing substantial individual participation. Different from Initial Coin Offerings (ICOs) now heavily regulated and often exclusive to VCs and accredited investors, inscriptions have emerged as a beacon for individual investors seeking access to low-cap crypto assets.
This open-access distribution mechanism contrasts the conventional routes dominated by VCs and institutions, who find themselves at a crossroads in this rapidly evolving inscription landscape. Their hesitation, torn between the risk of overpaying now and the fear of missing out, underscores a significant shift in the crypto world: leveling the playing field, where individuals can now stand toe-to-toe with institutional players. This paradigm shift epitomizes one of the crypto world’s most defining characteristics – its ability to empower individuals.
Performance Testing on Blockchain Networks
The blockchain industry currently lacks real ‘killer’ applications. Such applications are necessary for testing the performance of many public chains for their massive adoption. Without superior performance, these chains are speculative for developers and users aiming to deploy widely adopted applications. However, inscription speculation is a good test, providing reference data for potential future applications. Let’s see two examples as follows:
– Celestia’s modular blockchain launched its first inscription project, CIAS. Within an hour of its launch, it received over a million visits from more than 120,000 people, with over 50% of Celestia’s transactions related to CIAS. The team later announced a remote procedure call (RPC) fault, leading to a pause in minting.
– On December 15, the Arbitrum
ARB network stopped at 10:29 AM Eastern Time due to a user surge from inscription protocols, causing network downtime for 78 minutes. Arbiscan data shows that on December 15, transactions on the Arbitrum chain spiked to 4.39 million, a new record.
Inscription minting is typically uncomplicated and often a zero-fee transaction. As shown in the above examples, chains may face congestion and outages during user surges. This indicates significant room for improvement in mainstream public chains’ performance. This improvement is crucial for handling an influx of massive Web2 users effectively in the future.