What new narrative will Inscription and Bitcoin L2 play?

Foreword:

Following December 6, Luke publicly issued a statement boycotting Bitcoin After Bitcoin Inscription, Bitcoin godfather Adam Back put forward a different view on December 17. He believed that we should not try to kill Bitcoin Inscription. The movement of issuing assets on the Bitcoin chain has brought huge benefits to Bitcoin miners. For Bitcoin The long-term stable development of the currency is valuable, and the congestion problem that Inscription brings to the Bitcoin network can be solved by developing Bitcoin L2.

Text:

Adam Back is no stranger to everyone. His invention of Hash Cash (digital cash) in 1997 directly inspired Satoshi Nakamoto to create Bitcoin. Therefore, he is also known as The godfather of Bitcoin, BlockStream, which he founded, is a world-renowned Bitcoin development company and a key driver of all major Bitcoin upgrades (including Segregated Witness and Taproot upgrades). Has huge influence in the Bitcoin community.

Therefore, Adam Back's tweet triggered a huge discussion, and everyone was thinking about what kind of sparks Bitcoin Inscription will create with Bitcoin L2. Bitcoin What new development opportunities can Coin L2 bring to Bitcoin and assets on the Bitcoin chain?

The author strongly agrees with Adam Back's view. This is a builder's way of looking at inscriptions and the ecological development of Bitcoin. On the other hand, Luke, when he saw a new thing like inscription, he would kill it with a stick and resolutely strangle it. Adam Back gave a practical solution - the development of Bitcoin L2.

The author is deeply involved in Bitcoin Inscription and has also done some research on Bitcoin L2. Below, I will focus on the Bitcoin L2 project—— BEVM takes it as an example to discuss what sparks Bitcoin Inscription and Bitcoin L2 can create.

The reason why I chose BEVM as an example is because BEVM is a BTC L2 that has been implemented and can deploy decentralized applications. Other BTC L2 solutions include RGB, BitVM, etc., let’s not talk about whether the theory is feasible, at least I can’t see anything available at the moment. It is understood that BEVM is a decentralized BTC L2 that uses BTC as GAS and is compatible with EVM. Currently, Xianxing.com has been launched, and a large number of ecological projects have been deployed based on BEVM.

Understanding the relationship between Bitcoin Inscription and Bitcoin L2

To understand the relationship between Bitcoin Inscription and Bitcoin L2, we first need to review the history of issuing assets.

The mainstream narrative of the Crypto industry from 2016 to 2019 is to issue assets based on Ethereum. ERC20 was the mainstream token issuance standard at the time, just like Bitcoin today. The currency issuance standard Brc20 is the same as other XRC20. The ICO event in 2017 is no less spectacular than the Fair Mint in 2023. Of course, most ERC20 tokens have skyrocketed and plummeted, and most of the now popular quarantined XRC20 tokens will suffer the same fate.

However, also between 2016 and 2019, in addition to the birth of various air tokens, DeFi, which built application scenarios around tokens, was also born Protocols, such as MakerDAO and Uniswap. They have gone through bulls and bears, and finally ushered in the DeFi Summer of 2020. To this day, they are still a model of decentralized applications. From this historical perspective, can Bitcoin Inscription, or various XRC20 tokens, also build decentralized Inscription applications? I think this is for sure and is an inevitable trend.

So, can Bitcoin inscription assets be used to build applications on the Bitcoin mainnet? The answer is obvious, definitely not. Due to Bitcoin's minimalist UTOX design, limited block space, and naturally Turing-incomplete architecture, Bitcoin cannot support decentralized applications. Therefore, Bitcoin L2 has become a necessity. Bitcoin needs L2 more than Ethereum. If this conclusion were put forward before the explosion of Bitcoin Inscription in 2023, not many people would understand and accept it. However, today when all kinds of inscription assets are flying all over the sky, especially those who have issued inscriptions and have For teams that want to continue building, Bitcoin L2 has almost become the only solution for Inscription’s future development.

Bitcoin Inscription 1.0 and Bitcoin Inscription 2.0

Throughout the development of Bitcoin Inscription from its birth to the present, we can divide its gameplay into Bitcoin Inscription 1.0 and 2.0 stages.

The gameplay of Bitcoin Inscription 1.0 is simple and crude: narrative narrative, Fair Mint, community Fomo, narrative failure, a lot of inscriptions describe the narrative, for example, to Make cross-chain bridge, DEX, oracle, LaunchPad, etc. If you really want to implement these applications, the best choice is to deploy them on Bitcoin L2. L2 builds the required decentralized applications and scenarios around these inscriptions.

Therefore, we can vaguely see the gameplay of Bitcoin Inscription 2.0: issuing assets in Bitcoin L1 and building applications in Bitcoin L2.

Therefore, we can predict that the future Bitcoin ecological application team will issue assets based on Bitcoin and issue tokens through Fair Mint, and then users Inscription assets can be transferred to Bitcoin L2 to play in various applications, and tokens can be used to capture the value of the application or protocol itself. Therefore, we will see various inscription applications running on Bitcoin L2 in the future.

Not only that, if BEVM also supports Fair Mint’s token minting protocol in the future, then users can also fairly launch assets directly on BEVM, and then directly on BEVM Building various decentralized applications on the Internet is also a good entrepreneurial direction.

For better understanding, let’s give an example:

Currently there are An NFT project called Bitmap is a very cool "metaverse land-like" project that is completely based on Bitcoin block production control. Currently, nearly 30,000 addresses hold this NFT, which is like a strong community. Basic projects.

If Bitmap wants to continue to expand more complex Metaverse application scenarios, the Bitcoin mainnet obviously does not support it. Therefore, Bitmap can cross over to BEVM and directly Build various decentralized scenarios, such as GameFi or Metaverse scenarios based on Bitmap NFT. Moreover, BTC is still used as GAS but the fee is cheaper. Moreover, Bitmap can also issue governance tokens in BEVM to govern the entire Bitmap ecosystem.

Not only Bitmap, but also NFTs on the Bitcoin chain such as Bitcoin Frogs, MNCHRMS, OrdiRocks, etc. can follow similar ideas to build richer application scenarios on BEVM. .

Since BEVM realizes the completely decentralized cross-chain problem of Bitcoin and assets on the Bitcoin chain, a large number of Bitcoins and assets on the Bitcoin chain It can be circulated in BEVM without trust, and these are equivalent to the asset security on the Bitcoin main network. Therefore, such a design has several benefits:

1. Letting Inscription assets run in BEVM can greatly reduce the operating pressure of the Bitcoin main network and prevent it from Creating congestion and invalid data for the Bitcoin mainnet. Bitcoin only does asset registration and ledger security, and the second layer is used to run these applications, with a clear division of labor and mutual benefit

2. It is originally difficult to build on the Bitcoin chain The application of a large number of inscription assets has infrastructure like BEVM that can expand the application scenarios of inscriptions. Therefore, the gameplay of inscriptions can be richer and more sustainable.

In the end, an ecological closed loop was formed in which Bitcoin L1 issued assets and Bitcoin L2 built applications.

This is most likely the development path of this wave of Bitcoin ecological development, and we look forward to it together.