Bitcoin ecology has the possibility of an explosion. Since the birth of Bitcoin, it has been positioned as "digital gold", and there has been very little development in the ecological direction. The early USDT was issued based on the Bitcoin network, but the handling fee was too expensive, so it was later abandoned. The Lightning Network has been developed as a second-layer network of Bitcoin for many years, but there has been no large-scale payment application.
Later, the blockchain ecology was mainly centered around Ethereum. After Ethereum switched to the POS mechanism, the focus of the ecology gradually shifted to Layer-2. Embarrassingly, in this round of market conditions, Ethereum was a bit lonely. After the Cancun upgrade, although the gas fees of L2s were indeed greatly reduced, the ecological application did not see a large-scale prosperity. On the contrary, the popularity of the SOL ecology far exceeded it.
In addition, the Bitcoin ecology also seems to be showing its head and feet. In early 2023, the ordinarys protocol was born, and the Bitcoin network successively appeared inscriptions, BRC20's NFT, L2 and other ecosystems, and showed a rapid and prosperous trend.
If Bitcoin is just "digital gold", it has only several times the potential for growth compared to the market value of gold, and "digital gold" has only collection value, not much application value. But if we can create an ecosystem that combines "digital gold" and ecological applications to allow the Bitcoin network to have DeFi, NFT and other scenarios on L2, it may indeed hit Ethereum from another dimension. (The market value of NFT on Bitcoin has exceeded that of Ethereum's BAYC, which also gives Ethereum a sense of urgency).
Originally, Ethereum's POW's L1+POS's L2 was also good. Since the switch to POS, the entire technical architecture has become more and more complex. Modularity, interoperability, cross-chain bridges, DA layers, pledges, re-pledges and more and more "small roads" have dazzled users. 🧍L2s are highly homogenized, and liquidity splits cannot form a joint force. This is also the embarrassment that Ethereum is currently facing. Bitcoin's consensus is far superior to Ethereum. If the L2 at the Bitcoin ecological level really explodes, the differentiation between Bitcoin and Ethereum will be more serious. It is still unknown how far the Bitcoin ecosystem can go, but it is indeed becoming more and more like that.
