Decoding NAT: The Inscription Set to Ignite the Bitcoin Ecosystem Once Again
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Decoding NAT: The Inscription Set to Ignite the Bitcoin Ecosystem Once Again
Once you select and mint a block, that block will forever belong to you.
Navigating Web3 tides with focused insightsAuthor: @GloryYeh, The Original Evangelist of NAT
Like the original Bitcoin, any emerging phenomenon will face skepticism and criticism;
Some say $NAT is just a copycat of Bitmap, pure garbage;
Others claim $NAT represents a new blockchain revolution that will completely transform the way tokens are issued within the Bitcoin ecosystem;
Setting aside bias, one objective fact remains: from its launch, this project sparked tremendous enthusiasm across the Bitcoin ecosystem—over 10,000 addresses spent nearly $5 million in gas fees within about a week to mint all $NAT tokens!
Such热度 and achievement undoubtedly mark it as a phenomenon-level star project. But what exactly is $NAT? Does its emergence truly carry epoch-making significance?
1. Uncovering $NAT
$NAT is the first token based on the TAP protocol that implements the Non-Arbitrary Token concept, officially deployed by TRAC.
On November 21, 2023 (Beijing time), after the $NAT project launched, it dominated the rankings for an entire week under the TAP protocol!
(The chart below shows the share of minting volume in the Ordinals ecosystem on 2023-11-27, where TAP protocol accounted for approximately 70% of the total)
Its minting mechanism is remarkably simple and novel: staking ownership of Bitcoin chain blocks! Once you mint a specific block, it permanently belongs to you and cannot be reminted by anyone else.
Notably, $NAT adopts a completely new model for issuance (number of cards and amount per card):
(1) Number of cards: determined by the total number of blocks currently existing on the Bitcoin chain;
- For example, from the genesis block of Bitcoin on January 3, 2009, up until now (December 16, 2023), around 820,000 (821,328) blocks have been generated, meaning there are approximately 820,000 $NAT cards in total
(2) Amount per card: determined by the number of "bits" (the mining difficulty target value of the block; the higher the bits value, the lower the difficulty) contained in that block.
- For instance: if block #817,824 has 386,161,170 bits, then the token amount associated with that block is 386,161,170
2. Total Supply and Inflation Mechanism
Total supply of $NAT = sum of all bits values across every block, currently estimated at about 328 trillion (approximately 820,000 blocks × average 400 million bits per block)
- As new blocks continue to be added to the Bitcoin chain—at an estimated rate of one block every 10 minutes—about 52,000 new blocks are added annually
- However, the bits value per block continuously decreases. As shown in the chart below, roughly every 100,000 blocks, the bits value drops by about 2.81% (estimated annual reduction of ~1.4%)
Considering both factors above, $NAT does experience some degree of inflation. However, due to the relatively stable annual addition of new blocks and the decreasing bits values over time, the inflation rate will decline year after year:
Based on this inflation trajectory, $NAT's total supply is projected to equal $SHIB’s current circulating supply only by the year 2047:
3. Digital Matter Theory
$NAT pioneers a new model for token minting and supply. It resembles gold mining in real-world mines, where each mine contains a limited quantity of gold.
Blocks are the mines, bits are the gold—extracting a predetermined amount from each block. This introduces non-arbitrary scarcity compared to traditional fungible tokens whose supplies are arbitrarily set by deployers.
This model is grounded in the “Digital Matter Theory” (DMT), making $NAT both a practical application and advancement of this theory.
Digital Matter Theory proposes that digital matter forms can be created by leveraging inherent patterns present in data.
Take token issuance as an example:
- Traditional models allow project teams to arbitrarily decide issuance amounts;
- Under Digital Matter Theory: issuance is not subject to human will but determined by block-side products native to the Bitcoin chain.
Block-side products refer to intrinsic data dimensions (specific attributes) that exist whenever a Bitcoin block is generated, such as hash values, block height, bits, etc.
The number of tokens equals the number of these side products generated within the defined rules of the Bitcoin blockchain. Total supply isn't fixed, and future emissions remain unknown.
- Could the Digital Matter Theory driven by $NAT redefine a new era for the Bitcoin ecosystem?
4. Prospects and Imagination for $NAT
- Expectation 1: Innovative Token Issuance Model
$NAT inaugurates a groundbreaking issuance model based on Digital Matter Theory—an unprecedented innovation and major transformation.
Currently, indexing for $NAT has been completed, though its creator Benny hasn’t revealed further details. We speculate boldly that Benny’s indexing for $NAT likely extends beyond just bits, potentially encompassing all block-side products (over 30 dimensions).
This implies that any future assets issued under Digital Matter Theory may rely on $NAT’s index—a potentially massive incremental market!
- Expectation 2: First Meme Coin on the TAP Protocol
How hot is the TAP protocol lately? Binance has publicly endorsed it at least three times:
(1) On November 25, 2023, when introducing the Bitcoin ecosystem, Binance highlighted the TAP protocol:
(2) On January 24, 2023, Binance Research officially mentioned the TAP protocol again:
(3) When presenting Ordinals DeFi, Binance placed TAP protocol at the top:
Given $NAT’s current holder count, popularity, and attention, it is destined to become the first meme coin on the TAP protocol. Only with $NAT going viral can the TAP protocol achieve mainstream breakout, attracting more partners and users, thereby further stimulating the entire Bitcoin ecosystem.
This is an inevitable trend—and also $NAT’s mission.
- Expectation 3: Natural Inflation Gameplay Similar to $DOGE
Development always has two sides: excessive inflation could crash prices, while moderate, predictable inflation brings greater excitement and engagement—especially when inflation correlates directly with Bitcoin block generation, and anyone can obtain $NAT from newly mined blocks by paying gas fees.
How thrilling and exciting is that!
- Expectation 4: Foundation for Metaverse Development
$NAT may represent far more than just an innovative token issuance model—it holds countless possibilities.
For example, with NAT (Non-Arbitrary Data), reasoning within BitMap domains becomes possible, enabling BitMap itself to function as a fully-fledged metaverse operating entirely on its own data.
Reasoning based on data implies smart contract capabilities—akin to having something like BitVM (Bitcoin Virtual Machine).
NAT can be a single piece of data or any combination thereof. Thus, anything becomes possible.
NAT is a trump card in Benny’s hand, and also the cornerstone for parent company TRAC to build a metaverse and establish deep collaborations with mainstream gaming and film companies.
(Specific details withheld for now—the biggest mystery will be revealed later)
With these four expectations combined, what kind of surprise will $NAT bring to the broader crypto world once the market fully opens? Stay tuned.
Final Thoughts
Drifting through the long river of time,
epic scenes gradually unfold before our eyes.
The birth of blockchain laid the foundation for decentralization.
Amidst doubt and mockery, traditional constraints are continuously shattered.
Innovation and consensus have become the dominant themes.
What kind of era is this?
Creators are liberated from old shackles.
Countless ideas surge forward, countless sparks of wisdom shine bright.
Technology dances with art; digital blends with reality.
It is never prejudice and arrogance that change the world,
but technology and innovation.
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@GloryYeh
