New Opportunities for the Bitcoin Ecosystem: Ordinals and BRC20 Development Prospects

Bitcoin Ecosystem Analysis

The Bitcoin halving will continue to put pressure on miners to survive. After each halving, higher-cost miners are at risk of downtime and delisting, a problem that existed in the early days of Bitcoin's design.

Although the halving may lead to a decline and volatility in hash rate in the short term, the overall trend of Bitcoin network hash rate growth will not change in the long run, as hash rate growth reflects increased recognition and support for Bitcoin.

Ordinals provides miners with a new source of income by allowing users to mint various digital collectibles on the blockchain, part of the value of which will be acquired by miners. If Ordinals scales up, it could become one of the more stable income channels for miners, playing an important role in alleviating the pressure brought by halving.

Overall, halving is a survival pressure that Bitcoin must face, while Ordinals provide miners with opportunities to cope with this pressure and gain additional income. This helps enrich the application scenarios of Bitcoin and keeps miners active in the Bitcoin ecosystem.

The BRC20's attempt at closure and modularity

BRC20 adopts a simple and elegant design. It does not have overly complex mechanisms, but rather starts from some simple concepts, implemented under the guidance of the designers. This simple and stable protocol has strong vitality.

However, the BRC20 system is still relatively closed at the moment. When new developers come in and want to create new things, it is actually impossible to do so without the support of the system.

In order to solve this problem, some teams have tried to explore the modular design of the BRC20, hoping to gradually transform the BRC20 from a closed system to an open system to support more developers' innovative applications. At present, there are also teams that do the interaction between EVM and BRC20 in the direction of modularization.

In addition, BRC20 is suitable for cross-chain applications. BRC20 itself is loosely coupled with the Bitcoin infrastructure, which means that the connection between BRC20 and Bitcoin's underlying architecture is not tightly integrated, but rather relatively independent and flexible. This allows for the flexibility to interact with external chains, providing the possibility for BRC20 to achieve cross-chain value creation.

In short, BRC20's future exploration in the direction of modularization is expected to build an open cross-chain application architecture and support the construction of a richer Bitcoin application ecosystem.

Solutions to BTC Mainnet Congestion

BTC mainnet congestion is a problem that the Ordinals ecosystem needs to face and solve.

The industry has realized the seriousness of the problem and has been exploring technology from many aspects. In some newly developed products, the technical solution of rollup is adopted.

Roll up can batch package users' transactions and write them to the main chain. This mechanism can significantly reduce the total number of transactions that need to be processed on the mainnet and play a role in alleviating congestion. Compared with writing directly to the main chain, Roll up transactions have less load pressure on the mainnet. This prevents the large number of Ordinals transactions from clogging the Bitcoin mainnet as before.

In addition, the industry is also exploring other more radical technological solutions to further enhance scalability. It is hoped that the congestion issues that blockchain applications may face can be gradually resolved.

Ordinals Ecosystem Product Planning

Some of the products currently being developed and planned by the Ordinals ecosystem include:

Indexer( indexer) provides indexing functionality for BRC20 and is now in use.

Swap, a decentralized trading protocol that enables trading between Ordinals assets. The protocol will be 100% open source in the future. A relatively conservative rollup scheme is adopted to reduce the congestion pressure on the mainnet by processing packaged batch transactions.

Mobile app, a mobile application that improves user experience, interoperable with the existing Chrome extension wallet.

An open game framework that allows users to freely develop blockchain games within the framework.

The industry will continue to develop more innovative BRC20 applications and collaborate with the community to promote the development of the Ordinals and BRC20 ecosystem.

Community co-building attitude

In the future, the Ordinals ecosystem will place greater emphasis on communication with other projects in the community, enhance mutual understanding, and explore collaboration possibilities.

At the same time, some existing technology accumulation will be opened up. At present, we are constantly promoting openness, and we will open up as much as possible what can be open source, and what can be packaged and released for users or other developers to use.

This reflects the Ordinals ecosystem's open and transparent mindset, opening its technology and products to allow more people to participate in innovation and achieve a win-win concept. This is an important idea for promoting the co-construction of the Ordinals and BRC20 ecosystems.

Conclusion

Ordinals and BRC20 seize the opportunities brought by the Bitcoin ecosystem, supporting a rich variety of blockchain applications through simple and elegant protocol design, and co-building an open and win-win platform with the community to promote new developments in Bitcoin technology.

In the future, the Ordinals ecosystem will continue to devote itself to the construction of the Bitcoin ecosystem and work together with the community to make more possibilities possible in the Bitcoin world.