Enter the world of #铭文 and #IERC20 !

Let’s start with the basics and delve into the inscription:

1. The journey of inscription begins with Bitcoin’s ordinal number, which can directly inscribe various data—text, images, and videos—on the blockchain. BTC can only integrate support for NFTs and other tokens this way because it lacks compatibility with smart contracts.

2. Ethereum and other EVM-based links have accepted this concept and transitioned from SAT to call data in transactions.

3. Calldata is optional data in transactions, usually used to pass inputs to smart contracts and process summary data. It's read-only, cost-effective, and a key element of Inscriptions.

4. In the field of EVM, BRC-20 tokens have become the main content of Inscriptions. These tokens store data in calldata (JSON format) rather than residing in smart contracts.

5. A distinctive feature of IERC-20 inscription is its off-chain logic. Unlike traditional ERC20 tokens with on-chain rules enforcement, IERC-20 inscriptions delegate off-chain logic, relying on indexers for interpretation.

6. The off-chain indexer plays a key role in verifying the existence of tokens, preventing over-minting, and handling various inscription operations. The minting process involves a "mint" operation in calldata, while a transfer uses a "transfer" operation, usually accompanied by an emitted event.

7. Transparency takes center stage. All IERC-20 transactions are stored on-chain, promoting openness and accessibility. Furthermore, cost-effectiveness reigns supreme – operations involve cheaper calls to data rather than on-chain smart contract execution.

8. The fatal weakness of Inscriptions is its heavy reliance on off-chain indexers. While anyone can theoretically recreate the token state, it depends on the indexer adhering to the protocol rules.

9. IERC-20 is still the initiator of indexer development, but it is preparing to introduce a decentralized indexing solution: PoW + decentralized indexing method. This approach enables users to mine using PoW while participating in a decentralized index.

10. It is a powerful decentralized indexing solution that ensures data and code unification among multiple indexing parties. Additionally, the larger and more dispersed participation of PoW mining participants enhances decentralization.

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