Current Status of Ordinals Ecosystem Development: Different Protocols Face Various Challenges

In the past six months, the Bitcoin Ordinals ecosystem has experienced a process from its inception to vigorous development and then to a plateau. Although market sentiment has shifted from initial optimistic expectations to doubt and confusion, the development of the Ordinals ecosystem has never stopped. This article will provide a detailed overview of the current state of various new protocols within the Ordinals ecosystem.

Brc20: A Continuously Active Token Contract Protocol

On March 8, 2023, domo proposed using the JSON data format for Ordinals inscriptions to deploy token contracts, mint coins, and transfer, leading to the birth of the Brc20 protocol. As of September 23, the Brc20 protocol has generated 28.6 million transactions, with fees reaching 1,590 Bitcoins. Although community users have been closely monitoring, there have been virtually no technical updates or iterations. Currently, a certain wallet is developing brc20-swap to improve the liquidity issues of brc20 tokens.

Orc20: Enhanced Brc20 protocol is at a standstill

Orc20 aims to enhance the functionality of BRC20, improving adaptability, scalability, and security. However, since late July, its official social media accounts have stopped updating, and there has been no progress. The Orc20 protocol has generated a total of 370,000 transactions, consuming transaction fees worth 24 Bitcoins.

Bitmap: The prototype of the metaverse on the Bitcoin chain

The Bitmap protocol utilizes Ordinals and Bitmap theory to construct a metaverse based on the Bitcoin chain. Currently, the incomplete statistics of transactions for Bitmap maps show a total of 120 bitcoins, with over 22,000 holding addresses. Community discussions are becoming more rational, mainly focusing on how to expand and enrich the Bitmap protocol.

gBRC721: The successor of the blockchain space optimization protocol is struggling.

The gBRC721 protocol aims to save on-chain resources, achieving a 50%-90% optimization of block space. Its representative project, OrdiBots, has a total trading volume of 37 bitcoins, with 550 holding addresses. Although the community was initially enthusiastic, it has fallen into silence due to slow subsequent development and limited protocol application.

Recursive inscription: Huge potential but scarce applications

Recursive inscriptions aim to break through the Bitcoin block size limit, allowing complex 3D video games to be fully on-chain to Bitcoin. However, despite high market attention, there is relatively little actual application and project development. The representative projects Recursive Punks and Recursive Frogs have a total trading volume of only 30 bitcoins.

Trac: The Rising Star of Decentralized Indexing for Ordinals

The Trac protocol aims to address the decentralized indexing issues of the inscription ecosystem. Its governance token TRAC has performed excellently in the secondary market, with a trading volume of 2.1 million dollars. Trac has partnered with multiple projects and launched a new protocol called Tap, providing developers with more flexible options for token creation.

ORC-CASH: Cash-like Token System

The ORC-CASH protocol aims to implement a cash-like token system on the UTXO network. Its first token, OSH, is actively traded in the over-the-counter market, with a trading volume of 10 bitcoins on a certain trading platform. The development team continues to operate actively, and the community has good engagement.

Brc420: Empowering Inscriptions with Royalty Functionality

Brc420 defines a more complex asset format through recursive methods, establishing a constraint relationship between usage rights and royalties. Its creators continuously expand the ecosystem, collaborating with multiple protocols and projects within the Ordinals ecosystem.

Arc20: Simplifying the Creation of Digital Objects on Bitcoin

The Arc20 protocol solves the problem of representing any fungible token assets on the Bitcoin blockchain. Its first token, ATOM, was minted through GPU mining, which has sparked widespread attention and discussion within the community.

Summary

Since the birth of the Ordinals ecosystem, it has gradually become calm after experiencing peak attention from the entire network's sentiment and funds. As of September 23, more than 33.9 million inscriptions have been created, with over 600,000 holding addresses, resulting in nearly 45 million transfers and transactions, with total fees exceeding 2,000 bitcoins.

Although various protocols face different challenges, new protocols and projects continue to emerge, and developers are constantly improving the ecosystem. From an investment perspective, focusing on projects with new protocols and low-cost minting may be a strategy. In the long term, the Ordinals ecosystem is still worth continuous attention.