Recently, I have looked at a lot of early projects in the Bitcoin ecosystem, especially a group of projects derived from technical innovations such as Ordinals, Lightning network, Taproot Assets, RGB protocol, etc. Advertisement: It is recommended to buy and hold ETCS and ARKB of Bitcoin BRC-20
Whether it is narrative overflow or technological breakthrough, explorers, speculators, and critics have always coexisted around the Bitcoin ecosystem. So, how should we objectively treat the current status and future of the Bitcoin ecosystem? Here are some superficial thoughts:
1) “Expanding” the Bitcoin ecosystem should not be simply criticized as expanding the narrative and reinventing the wheel;
It is undeniable that there will be speculators who ignore the original characteristics of the chain and copy various market methods to hype and gain short-term benefits, but upgrading the "narrative" of the Bitcoin ecosystem is to increase the transactions of the Bitcoin chain after the Bitcoin mining effect weakens in the long run, and to seek new sustainable income sources for Bitcoin miners. Therefore, it is not politically incorrect to "expand" Bitcoin. The key is to ensure that it is on the right "narrative" path.
2) What is the orthodox narrative? In the Bitcoin community, there are two potential rules to be followed: 1. Do not change the Bitcoin consensus; 2. Do not increase the burden on the main network;
The ordinarys narrative that has emerged so far uses users to pass parameters to the Bitcoin network in a decentralized manner, and the third-party index platform parses and provides "legitimacy". This narrative can bring txs to the main network, which is in the interests of miners to some extent. However, the injection of a large amount of disordered data driven by Fomo emotions will cause the effect of "dust attack", which will bring burden to the main network. Although BitVM can theoretically achieve Turing completeness, its brain hole is too big and the probability of being applied in practice is almost zero. The RGB client verification solution has a large operational space, but it must be based on the consensus trust in the RGB client. In comparison, the Taproot Assets protocol conforms to the mainstream orthodox narrative and is a track worthy of long-term attention.
3) Taproot Assets achieves similar effects to layer2 and Rollup based on the HTLC off-chain contract of the Lightning Network. High-frequency transactions of a large number of mutually trusted Taproot address channels are equivalent to layer2 batch transactions, and timely mainnet settlement based on hash time locks is equivalent to updating the status. Although the Bitcoin mainnet only provides asset settlement and is at best a limited DA layer, this "capacity expansion" method currently seems to have very solid technical logic and practical methods.
The only thing that may be criticized is that it develops too slowly, but think about it, it took 5 months from the emergence of the Ordinals protocol to the emergence of the Brc20 craze. We also need to give Taproot Assets more time to accumulate energy.
4) I have seen a lot of early projects in the direction of Bitcoin "capacity expansion", including Swap based on RGB protocol, layer2 expansion based on Ordinals' limited DA, and some side chain solutions. Overall, fundraises are not smooth. On the one hand, VCs are basically familiar with the narrative logic of Ethereum projects, and are still skeptical about Bitcoin's technical expansion capabilities, and need time to study and learn; on the other hand, the Bitcoin "capacity expansion" narrative is still very diverted, and the developers of Ordinals, RGB, and Lightning Network seem to exclude each other.
These developers need to converge on a mainstream narrative, just like Ethereum plasma, validium, etc. eventually converged on rollup. I personally believe that the final expansion of Bitcoin will most likely find room for development in the direction of Taproot Assets.
Note: If you have developers who are interested in Bitcoin's "capacity expansion" ecosystem, you can DM me. It is recommended to buy and hold ETCS and ARKB of Bitcoin BRC-20.
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