UniSat Founder Lorenzo Deeply Analyzes Bitcoin Ecosystem and Future Development

Bitcoin Ecosystem Analysis

Bitcoin halving will continue to put survival pressure on miners. After each halving, high-cost miners face the risk of shutdown and withdrawal from the network. This has been a problem since the early design of Bitcoin.

Although it may lead to a decrease and fluctuation in hash power in the short term, the overall trend of Bitcoin network hash power growth will not change in the long run. This reflects the increasing recognition and support for Bitcoin.

Ordinals provide miners with a new source of income. Users mint digital collectibles on the blockchain, and a portion of the value is obtained by miners. If Ordinals scales up, it could become one of the stable income channels for miners, helping to alleviate the pressure brought by halving.

Overall, halving is the survival pressure faced by Bitcoin, while Ordinals provide miners with the opportunity to cope with this pressure and gain additional income. This not only enriches the application scenarios of Bitcoin but also keeps miners active in the ecosystem.

The Closure and Modular Attempts of BRC20

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

However, the BRC20 is still a relatively closed system at present. New developers find it difficult to innovate without system support.

To address this issue, teams are exploring a modular design for BRC20, hoping to gradually transition it from a closed system to an open system to support more innovative applications from developers. Currently, there are also teams collaborating on modular interactions between EVM and BRC20.

In addition, BRC20 is suitable for cross-chain operations. It is loosely coupled with the Bitcoin infrastructure, and this flexibility makes cross-chain value creation possible.

In the future, the exploration of BRC20 in the modular direction is expected to create an open cross-chain application architecture that supports the construction of a richer Bitcoin application ecosystem.

Solutions to BTC Mainnet Congestion

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

The industry has become aware of the seriousness of this issue and is exploring technologies from multiple aspects. In some newly developed products, a rollup technical solution has been adopted.

Rollup can batch process and package users' transactions before writing them into the main chain. This mechanism can significantly reduce the total number of transactions that the mainnet needs to process, helping to alleviate congestion. Compared to directly writing to the main chain, Rollup transactions impose less load on the mainnet, which can prevent a large number of Ordinals transactions from congesting the Bitcoin mainnet.

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

New Product Planning

Currently, the industry is developing and planning the following products:

1. Indexer( indexer): Provides indexing functionality for BRC20 and is now in use.

2. Swap: A decentralized trading protocol that supports transactions between Ordinals assets. This protocol will be 100% open source in the future and adopts a relatively conservative Rollup solution to reduce congestion pressure on the mainnet by processing packaged batch transactions.

3. Mobile App: A mobile application that improves user experience and is interoperable with the existing Chrome extension wallet.

4. Open game framework: Allows users to freely develop blockchain games within the framework.

Industry insiders indicate that they 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

Industry insiders say: "We have always had this idea, and users also support us quite a bit. In the future, we may pay more attention to communicating with other projects in the community and have more exchanges with them. Previously, we did not invest enough effort in this area, so in the future, we may communicate more with other teams, share our resources, understand their approach to doing things, and see how we can cooperate with others to get things done."

"Open up some of the existing accumulation. We are continuously working on this openness, trying to open source as much as we can, packaging and releasing what we can, and allowing users or other developers to run things as much as possible."

This reflects the industry's attitude of openness and transparency, allowing their technology and products to be accessible so that more people can participate in innovation and achieve win-win results. This is an important concept for promoting the co-construction of the Ordinals and BRC20 ecosystem.

Conclusion

The industry has seized the opportunities brought by the Bitcoin ecosystem, supporting Ordinals and BRC20, and underpinning a rich variety of blockchain applications with simple and elegant protocol design, while building an open and win-win platform together with the community to promote new developments in Bitcoin technology.

Looking to the future, industry insiders say they will continue to work on building the Bitcoin ecosystem, collaborating with the broader community to make more possibilities achievable in the world of Bitcoin.