Further Discussion on Bitcoin Ecosystem (Part 2)

Source: Daoshuo Blockchain

In yesterday's article, I summarized the three main points of Bitcoin ecology: Innovation is the soul, the foundation of the second-layer expansion, and application is the key.

Today, I will continue to look at the second-layer expansion and its application of Bitcoin around these three points.

Let's first look at the second-layer expansion of Bitcoin.

Among all the second-layer expansion technologies currently available, I think the best is the RGB++ technology implemented by CKB, while other second-layer expansions are basically compatible with Ethereum EVM or use side chains and multi-signature technologies.

Therefore, in theory, the second-layer expansion based on the RGB++ protocol and CKB is a more ideal solution.

Let's then look at the application of Bitcoin ecology.

Applications directly based on the Bitcoin mainnet (such as the Unisat trading market and DEX based on the Bitcoin mainnet) are still difficult to be accepted by the public in terms of user experience, and most of them are not innovative, so I don't think it will be the mainstream of the Bitcoin ecology in the future.

Applications based on the second-layer extension can be divided into two situations:

For mainstream systems (compatible with Ethereum EVM, sidechains and multi-signature technology), they have better application experience than the main network, and use the coin issuance incentive to attract many users to cross-chain assets to the second layer to achieve amazing TVL. But they are too lackluster in innovation, and they mainly copy Ethereum's DeFi applications.

For CKB and RGB++, which are currently the most popular in technology, its ecology is too weak, with almost no well-known applications, and only a few meme coins with emotional value.

So there is an awkward situation between Bitcoin's second-layer extension and application:

For general technology, the application is acceptable, but it is basically based on imitation and plagiarism, and no innovative applications have appeared.

The application of good technology is weak, and even imitation and plagiarism applications are lacking.

There is a unique subdivision ecology here: some applications derived from Bitmap and BRC-420. But at present, the scale of these applications is still small and not very popular.

So overall, whether based on the Bitcoin mainnet or its second-layer extension, the current application of Bitcoin is still a long way from the ideal state.

As time goes by, if this situation is not improved, and the "key" of Bitcoin application is not able to demonstrate its role, the risk of the entire ecosystem will become higher and higher, and I will pay more and more attention to the risks.

On the other hand, innovation in the ecosystem is the soul, and I will pay special attention to those innovations that only exist in the Bitcoin ecosystem but not in the Ethereum ecosystem.

In terms of specific actions, I will pay attention to the ecosystem built by CKB and RGB++ and the ecosystem built by Bitmap and BRC-420, because their innovations are unique.

But on the other hand, I will also take into account various risks and only focus on assets with the smallest possible risks in these ecosystems.

In the exchange on Saturday, a reader asked: Have I bought NeuroApe and Seal in the CKB ecosystem?

According to the ideas I expressed earlier, I think:

Whether it is NeuroApe or Seal, they are both popular because people are optimistic about the CKB and RGB++ ecosystems.

But will these projects eventually become popular? There are too many unpredictable risks, so I won't take this risk. But if there are projects in this ecosystem that will become popular, it will eventually benefit CKB.

So in this case, I will buy CKB directly, and will not buy specific projects in the ecosystem that I am not sure about, such as NeuroApe and Seal.

Some readers also mentioned: I bought some projects before, and the prices of these projects are much lower now. Now I want to buy more to reduce the cost of the entire position.

I am very cautious about this approach.

Among all assets, I will only do this for Bitcoin and Ethereum, and I also have to see if they have fallen to within my fixed investment price. Only when they are within the fixed investment price will I do this.

For any other asset, unless I am extremely optimistic about its future, I will be very careful.

When many readers asked this question, I could hear from their tone that they might not be so optimistic about the varieties that they wanted to cover at a low level. So you should think twice before you really do this, especially when the prospects are not clear and the uncertainty is too great.