Knowledge popularization of DRC20 inscription protocol: UTXO operating mode, differences between Cardinals and Doginals

Inscriptions are so popular these days that many people rush into this market without knowing the truth. Although I am not an expert in this field, within the scope of my ability, I still want to bring some knowledge to everyone. , to prevent everyone’s hard-earned assets from being wiped out overnight. I also remind everyone that while rushing into hot spots, you must also improve your own knowledge. Otherwise, no one will be able to help you due to losses caused by your lack of knowledge.

Today I want to share with you some things I know. If the content of the article is wrong, please feel free to enlighten me.

It has been seen that some people use the Unielon wallet to cast inscriptions, causing the original inscriptions of other DRC20 protocols to be transferred out, and thus believe that Unielon is a fraud. This is not the case. This depends on the operating model of UTXO and the inscription protocol of DRC20. The difference between Cardinals and Doginals will explain this to you.

DOGE uses the UTXO model. Let me briefly explain its operating logic to you. We assume that each UTXO is a cash note that can only be used once. Each UTXO (cash note) represents a certain amount of money. Adding up all UTXO (cash notes) can calculate the user's balance.

Let me give you an example. Suppose Bob receives 10 BTC, so there is a 10 BTC UTXO on Bob's Bitcoin address. At this time, Bob needs to transfer 2 BTC to Alice, then 10 BTC UTXO will be used (disappeared), 2 BTC (new UTXO) will be transferred to Alice, and the remaining 8 BTC (new UTXO) will be given to himself in change. So an old UTXO (10 BTC) disappears and becomes two new UTXO (8 BTC and 2 BTC). The diagram is as shown in Figure 1

To give another example, suppose A has multiple UTXOs, namely 1BTC UTXO, 2BTC UTXO, 3BTC UTXO and 4BTC UTXO, and B has no BTC. At this time, A needs to transfer 2.5BTC to B. So how does the UTXO model work?

UTXO will give priority to the UTXO with the smallest value for payment. At this time, the UTXO of 2 BTC from address A will be transferred directly to B, and the UTXO of 1 BTC will be spent as a whole, of which 0.5 BTC will be transferred to B and 0.5 BTC will be given in change. Own.

After the transfer, there are 0.5BTC UTXO, 3BTC UTXO and 4BTC UTXO on address A.B has a UTXO of 2BTC and a UTXO of 0.5BTC. The diagram is as shown in Figure 2

From the above two examples, you should be able to roughly understand the operating mode of UTXO. Next, let’s talk about the difference between Cardinals and Doginals. The structure of Doginals is the same as that of the Ordinals protocol. In the past, many assets disappeared in BRC20. Transferring Ordinals into Unsupported wallets will also cause the inscription to disappear.

In this case, if you transfer the Doginals protocol inscription to a wallet that does not support Doginals, such as Unielon's wallet, it will be used as a normal DOGE, and your original inscription (old UTXO) will be used. New UTXO is generated and entered into Unielon's wallet. Of course, no one can return your assets.

The Cardinals protocol has modified this part so that it can be adapted to more different wallets. Even if it is transferred to an unsupported wallet, it will not disappear. Of course, there are opportunities to cooperate with more exchanges, and the application level will be wider in the future. .

In currencies that use the UTXO model, if the user fills in the wrong contract address, it is likely that the currency will not be retrieved. Because UTXO does not have additional storage transfer status, and its corresponding UTXO no longer exists in the database after the currency transfer operation, that is, the system defaults that you have spent and this action cannot be undone. Incompatible contract addresses will result in incorrect input and the receiver cannot accept it normally. Therefore, the assets will most likely not be recovered.

In the future, when everyone plays with inscriptions on different chains and different protocols, they also need to pay attention to whether the protocol can only use a single wallet, or separate different wallets for different protocols, so as to avoid the regret of asset disappearance in the future.

This article explains the use of UTXO by @MEXC_Official. This article is very clear and detailed, and there are more examples in the text. I highly recommend everyone to read it. Other teachings are also suitable for newcomers to read. New friends who are interested can also read it. You can read more.

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#Cardinals#Unielon #DRC20