SevenX Ventures: Understanding the Fundamental Logic Behind BTC Ecosystem Growth and Exploring Potential Investment Opportunities
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SevenX Ventures: Understanding the Fundamental Logic Behind BTC Ecosystem Growth and Exploring Potential Investment Opportunities
The technology roadmap and leading product forms tell you where the next alpha is.
Navigating Web3 tides with focused insightsAuthor: Hill
Maintaining Bitcoin's massive computing power requires income on an equivalent scale. With the halving of Bitcoin block rewards, increasing transaction fee revenue has become urgent. This is especially true in a bear market context where miners need more income. 2022 was a devastating year for miners, as multiple costs rose simultaneously: capital costs surged with rising interest rates, energy prices increased, and mining electricity costs went up.
A decline in BTC price can lead to two vicious cycles. The first is the BTC price downward spiral: approaching the miner shutdown price → miners sell off → BTC price drops → miner profits fall → more miners sell off.
The second is the mining hardware price spiral: miner bankruptcies → miners sell hardware at discounts → hardware is acquired below market cost and restarted back into the network → hash rate rises → mining difficulty increases → more miners go bankrupt. The stock performance of many mining companies during the bear market fully demonstrated its brutality.
At the same time, new asset classes based on Bitcoin inscriptions—represented by ordinals—have gained strong market enthusiasm. The fees they generate have provided sufficient income for miners, helping them survive the harsh bear market until the current early bull phase. We will examine this new asset class from two perspectives—technical pathways and leading product forms—and attempt to analyze potential investment opportunities within it.
Bitcoin Technical Roadmap Upgrades
Main Direction 1: On-Chain Scaling
Segregated Witness (‘SegWit’) in 2017 changed Bitcoin’s transaction structure by separating it into transaction data and witness data. This introduced the concept of block weight, where witness data counts as only 25% of transaction data weight. Effectively, SegWit expanded Bitcoin’s block size, making it easier and cheaper to store data within the witness portion. Fundamentally, SegWit increased Bitcoin’s maximum block size from 1 MB to 4 MB (including 1 MB of transaction data and 3 MB of witness data).
The 2021 Taproot upgrade, while hailed by supporters as bringing smart contracts to Bitcoin, has seen limited adoption since launch over a year ago. Taproot enhances privacy and scalability by simplifying complex smart contracts (e.g., multisig wallets, payment channels) into standard Bitcoin transactions on-chain. Bitcoin Script is a simple scripting language used to define unlocking and locking conditions for Bitcoin transactions. Taproot’s two key impacts are: enabling advanced script writing in the block’s witness section, and removing data limits between block sections—allowing up to 4 MB of data in the witness part.
Ordinals & BRC20
Launched in January 2023, Ordinals combines Taproot with ordinal theory to create sats with unique inscriptions. Ordinal theory treats 1 BTC as 100 million sats and assigns each of Bitcoin’s 21 quadrillion sats a unique identifier. Individual sats can be inscribed with any content—text, images, videos—up to 4MB. Using an ordinal wallet is essential to avoid accidentally spending inscribed sats. Compared to NFTs, Ordinals have serial numbers, finite supply, and are fully stored on-chain.
Additionally, Ordinals bring benefits such as increased transaction fee income for miners, enhanced security, and fresh narratives. However, drawbacks include increased node storage demands, difficulties in content moderation, and potential fee spikes. Key players active in this space include Xverse, Gamma, and others that quickly added Ordinals support and launched related products. Notable NFT studios like Yuga Labs and DeGods also released Ordinals-based projects last month.
Inscription activities and the BRC20 standard operate on a first-come-first-served basis. Anyone can upload a Punk to the Bitcoin network, but only the earliest Bitcoin Punk is considered authentic—an emergent consensus. However, criticism over network storage consumption caused the trend to cool down. When information attached via the Ordinals protocol follows standardized formats, it enables not only non-fungible tokens (NFTs), but also fungible tokens (FTs).
ORC-20
ORC-20 surpasses BRC20 in token name flexibility. While BRC20 allows only four-letter symbols, ORC-20 permits arbitrary-length strings as "tickers." For example, the first deployed ORC-20 token, “ORC,” uses a three-letter ticker. Additionally, ORC-20 introduces post-deployment capabilities to modify total supply and maximum mint amount per transaction, offering greater flexibility for token economics experiments. These upgrades are achieved by specifying correct "ticker" and "id" values and inscribing upgrade instructions into a satoshi. For instance, supply could be adjusted from 21,000,000 to 2,100,000, issuance limit from 10,000 to 1,000, and "ug" set to "false" to disable future upgrades. After each upgrade, the ORC-20 token version ("v") automatically increments by 1. In terms of UTXO model usage, ORC-20 explicitly adopts it for token transfers—a clear distinction from BRC20. For example, if A sends $2 to B who previously had $1, under UTXO model, B’s balance appears as two separate UTXOs rather than a simple sum of $3. This model prevents double-spending since each UTXO can only be spent once. To send ORC-20 tokens, users must inscribe corresponding text onto a satoshi and append a final inscription to return leftover balance to the sender—similar to UTXO handling. If the final inscription fails, the transaction can be canceled mid-process.
Atomicals
Atomicals is an optimization project targeting limitations of Ordinals and BRC20, focusing on fungible tokens and solving BRC20’s over-reliance on centralized off-chain indexing. Atomicals leverages and extends Bitcoin’s UTXO model, treating each satoshi’s UTXO as a specific Atomical token or digital object, thereby creating and managing complex digital objects and token systems (ARC20) on Bitcoin. POW is introduced during ARC20 minting—miners must compute hashes with specific prefix characters to mint. The Atomicals protocol provides Bitwork Mining prefix settings for ARC-20, allowing participants to directly mine inscriptions/NFTs. The ARC-20 token standard adheres to Bitcoin purist principles, and future tool development is expected to enhance liquidity.
Taproot Assets
Bitcoin’s latest Taproot upgrade enables direct embedding of asset metadata into Bitcoin outputs. It also supports multi-hop transactions on the Lightning Network, ensuring seamless user experiences. Assets issued through this protocol are interoperable across the entire Lightning Network. This interoperability enables atomic swaps, allowing smooth transitions between Bitcoin and Taproot assets. Taproot Assets, launched by renowned Lightning Labs, aims to create and trade various digital assets on the Bitcoin network integrated with the Lightning Network. Its updates extend Lightning Network functionality beyond peer-to-peer payment channels to point-to-multipoint asset distribution models. A key feature of Taproot Assets is recording token information in Bitcoin mainnet UTXO output scripts as registration, while transfer functions occur within Lightning channels. Unlike BRC20 and ARC20, Taproot Assets require pre-minting by a single issuer before distribution, instead of open minting. Taproot Assets integrate a sparse Merkle tree for efficient data retrieval and include a Merkle-Sum tree to ensure data integrity. Assets can be transferred via on-chain transactions or through the Lightning Network once channeled. Notably, participants bear responsibility for validation and storage costs. Therefore, Taproot Asset witness data remains off-chain, stored locally in repositories called “Universes.” Asset validity is proven through lineage tracing from origin, cross-checked using transaction data files obtained from the Taproot Assets gossip layer. To maintain structural integrity and verifiability, Taproot Assets use a sophisticated indexing system akin to a meticulously cataloged library, ensuring timely access and verification of token data. Users may choose direct token transfers or leverage the fast Lightning Network. Similar to preserving authenticity certificates for valuable items, users must safeguard and verify data associated with their tokens, while the protocol offers tools to validate these “certificates.”
NostrAssets
NostrAssets is an open-source protocol introducing Taproot Assets and Satoshis (Bitcoin units) into the Nostr ecosystem. Users can send and receive assets using Nostr public and private keys at the protocol layer. Settlement and security rely on the Lightning Network, while the Nostr Assets protocol itself does not issue assets—it merely integrates existing ones into Nostr. Features include seamless integration of Taproot Assets and Bitcoin into the Nostr ecosystem, developer tools for innovative product creation, enrichment of Bitcoin and Lightning Network ecosystems’ value, and frictionless transition from chat to transactions. Future plans involve importing Taproot Assets from other Daemon Universes, enabling sending and receiving Taproot Assets in and out of Nostr.
Stamps
Bitcoin Stamps store image data permanently and immutably on the Bitcoin blockchain. Unlike storing images separately on websites or servers, Bitcoin Stamps embed image data directly into Bitcoin transactions. Creating a Bitcoin Stamp involves converting an image into base64 format—a method representing images as character strings. This string is then added to the description field of a Bitcoin transaction and sent to the Bitcoin network via the Counterparty protocol. Each Bitcoin Stamp receives a number based on transaction timestamp, aiding chronological organization. The first Bitcoin Stamp is defined as the first transaction containing a valid image string; invalid strings do not qualify. Unlike other digital collectibles, Bitcoin Stamps are directly stored on the Bitcoin blockchain, specifically within unspent transaction outputs (UTXOs), ensuring secure and permanent recordkeeping. Currently, two primary protocols dominate Bitcoin Stamps: SRC-20 and SRC-721.
DLC
DLC (Discreet Log Contracts) are Bitcoin-based smart contracts enabling complex financial transactions. Initiating a DLC requires both parties to deposit BTC into a shared 2-of-2 multisig wallet as collateral. Then, both agree on contract terms and sign Contract Execution Transactions (CETs), which represent possible future outcomes. Since CETs require oracle signatures for settlement, they remain unpublished. CETs occur off-chain and function as payment channels on Bitcoin’s Lightning Network. Advantages include enhanced privacy, no third-party custody, and lower energy consumption. Drawbacks include centralization risks, order matching difficulties, and novelty—the concept being relatively new and untested at scale.
Main Direction 2: Off-Chain Scaling
State Channels and the Lightning Network are Bitcoin’s two main off-chain scaling approaches. Taro is a proposed protocol allowing issuance of digital assets (FT/NFT) on the Bitcoin blockchain. Sidechains offer new BTC-based applications such as Liquid and Rootstock. Stacks introduces the POX consensus mechanism interacting with the BTC layer. The Nakamoto upgrade is expected in Q4 2023 to deliver higher security and decentralization.
Rollups have established a conceptual foundation using inscriptions on BTC. Although BTC zk rollups can compress data using validity proofs, performance and security issues persist. B2 Network is a Bitcoin Layer 2 solution aiming to improve transaction speed and application diversity. RGB protocol operates atop Bitcoin’s PoW consensus layer, with client-side validation as one core feature enhancing scalability and privacy.
B^2 (BSquared)
B^2 Network is a Bitcoin Layer 2 solution designed to increase transaction speed and expand application variety without compromising security. It is the first commitment Rollup on Bitcoin to implement zero-knowledge proof verification. B^2 runs zkevm on top of the Bitcoin network, allowing users to control their zkevm accounts directly through BTC wallet signatures—ensuring good developer and user experience. The zkp verification process in zkevm is broken down into small numeric units and stored on Bitcoin via Taproot transactions. Verification doesn’t happen on Bitcoin itself, but the full verification history can be reconstructed from Bitcoin. Users wishing to independently verify zkp still need to retrieve the entire zkp verification process from Bitcoin to perform local validation. B^2’s zkp verification isn’t optimal—users still incur extra computation compared to direct L1 verification—but it remains significantly better than recomputing all transactions.
RGB
RGB is a protocol built atop Bitcoin’s Proof-of-Work (PoW) consensus layer. Using RGB does not require changes to the Bitcoin blockchain or Lightning Network. The protocol functions as a directed acyclic graph (DAG), where participants cannot view the complete network state. Each new transaction must reference at least two earlier confirmed transactions before being recorded. Client-side validation, supported by RGB, enables users to create smart contract agreements among themselves.
Client-Side Validation
One of RGB’s core features is client-side validation, a concept proposed by Peter Todd. Because RGB transactions are not embedded in Bitcoin or Lightning transactions, scalability and privacy are significantly improved. Beyond storing transaction data off-chain, RGB uses single-use seals (or just “seals”) assigned to UTXO sets to lock Bitcoin transaction outputs as additional security. Seals prevent different parties from presenting conflicting versions of the same data, thus enabling qualified participants to verify smart contract state history.
RGB’s schema-level design defines validation rules for every state, ensuring successive owners apply identical validation logic. Thus, schemas guarantee social consensus, verification, and smart contract state consistency. RGB smart contracts consist of states, owners, and operations participants can execute to update states.
By default, RGB contracts define clear counterparties with exclusive ownership over specific state atoms, known as owning states.
Contract states contain various types of state atoms, similar to variable types in structured programming languages (e.g., Rust).
Operations include genesis operations, state transitions for updating or adding data, and state extensions enabling public participation.
RGB validation logic ensures consistent results regardless of platform or library used. This is achieved through two main components:
Core validation logic is implemented in Rust. All contract-specific validation logic runs on the Alluvium Virtual Machine (AluVM)—a highly deterministic, exception-free VM providing platform-independent instruction sets.
RGB node architecture matches that of LNP/BP nodes designed and maintained by the LNP/BP Standards Association. Nodes comprise multiple microservices, deployable as a single daemon (running background processes without user intervention) on desktops or servers, as threads within mobile apps, in cloud systems, or as standalone nodes bundled in mobile applications. All peer-to-peer communications are end-to-end encrypted and operate over the Tor network.
All data for RGB smart contracts is fully stored off-chain and managed by RGB nodes. The protocol uses UTXOs to store state transition proofs, enabling users/verifiers to scan Bitcoin’s UTXO set to confirm contract state correctness. Leveraging Bitcoin’s consensus layer requires only brief cryptographic commitments to ledger events—proving specific data exists without revealing content, typically achieved via hash functions—with only these commitments stored on-chain to ensure data authenticity and integrity, reducing on-chain data burden. Ledger data in RGB is designed to reside entirely off-chain; all contract data and state transitions remain off-chain rather than on the blockchain. Using single-use seals and state transitions, RGB effectively tracks and verifies smart contract states and transactions without storing all data on-chain.
ROOS Network
ROOS Network is a ZK Rollup-based, EVM-compatible Bitcoin Layer 2 scaling solution aiming to expand Bitcoin’s smart contract use cases without sacrificing security or decentralization. It seeks to overcome Bitcoin’s non-Turing completeness, improve transaction efficiency, and minimize transaction costs. ROOS allows developers to build various rollups—including sovereign and settlement rollups. According to its website, ROOS’ next step is launching the ROOS Alpha testnet and building a developer community and ecosystem services.
Layertwo Labs
Layertwo Labs developed Drivechain, enabling developers to create any blockchain application via sidechains connected to the BTC network. On these sidechains, developers enjoy full freedom to design any tokens, smart contracts, block sizes, consensus models (PoW, PoS), use cases, DApps, UX/UI, features, and rules—without restrictions.
Drivechain essentially provides a mechanism for building L2s on Bitcoin. There are only 256 slots available; additional L2s overwrite previous ones—akin to turning Bitcoin into Polkadot’s relay chain without interoperability features. Typically, Ethereum ecosystem L2 withdrawals are initiated by smart contracts on L1, usually controlled by the L2 team’s multisig, with some L2s offering force-exit mechanisms allowing users to submit fraud proofs or zk proofs of their L2 state directly from ETH L1. Drivechain withdrawals are fundamentally multisignature transactions signed collectively by all Bitcoin nodes. This multisig is secured by repeated computational signatures from all Bitcoin miners on L1. Each withdrawal receives one multisig confirmation per Bitcoin block, requiring 13,150 confirmations (taking 3–6 months) to unlock the payout transaction.
When a user initiates a withdrawal from L2, the L2 generates a 32-byte hash based on the L2’s global state, the user’s L2 state, and the L1 receiving address. Since this hash could be forged by attackers, a competition mechanism resembling a signature race ensures honest withdrawals prevail, so only one honest withdrawal succeeds. The winning condition requires 26,300 signatures. Starting from 1, each successfully confirmed block adds +1 score; if a block is multisig-rejected, score decreases by 1. If the score reaches zero, the withdrawal fails. The first to reach 13,150 gets funds sent to the user’s L1 address.
From an attacker’s perspective, controlling over half of Bitcoin’s hash power would be needed to influence individual multisig results, plus accurately predicting the user’s L2 account state (requiring matching hashes that change every block—difficult due to needing real-time monitoring of L2 states, with no inherent link between L2 and L1 accounts and unpredictable user behavior) and the L2’s global state (also challenging). Then, attackers must correctly sign their fake withdrawal transaction and repeat this process successfully at least 13,150 times (any failure along the way may extend the process beyond three months). Cheating attempts are easily detectable (since everything occurs on L1), giving honest participants ample time to respond. BIP300 emphasizes slow, transparent, auditable transactions—making it easy for honest users to act correctly and difficult for malicious actors to exploit.
Platform Projects
Platforms for minting and trading inscribed assets offer largely similar functionalities, generally including:
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Minting tools: Allow users to configure minting details (total supply, min/max per mint), query existing inscription info, and track minting progress
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Trading platforms: Similar to NFT marketplaces, allowing users to check floor prices, place orders, view recent trades, etc.
UniSat
OKX
Magic Eden
Stamp
Secondary Project Overview
Market sentiment is clearly overheated, with people seemingly lowering their IQ below 50. Token issuance is severely excessive—over 50% of tokens see fewer than three trades after listing. Leading tokens have already been listed on Binance. Compared to the previous cycle, I believe this inscription boom resembles the food-token mania before DeFi Summer officially began. Pure speculative hype cannot last forever. Investors might consider positioning early in asset trading and service platforms likely to survive and thrive in the next phase.
Bitcoin Ecosystem Inscription Assets
Brc20 ($mcap):
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Sats: Meme coin named after Bitcoin’s smallest unit
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Ordi: First BRC20 coin
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Trac: Decentralized indexing
Nostr Asset
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Treat: Governance token for Nostr Asset protocol
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Trick: Governance token for Nostr Asset protocol
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Nostr
Atomicals
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Atom
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Realm
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Arcs
Stamp
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Stamp
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Kevin
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Pepe
Bitmap
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BRC-420
Non-BRC20
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AUCTION: Launchpad + scaling chain
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MUBI: Cross-chain bridge
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BSSB: Asset platform
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Turt: BRC20 launchpad
Other Chain Inscription Assets
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ETHS: Inscription assets on Ethereum, based on Facet platform
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FACET: Ethereum inscription and trading platform, developed its own Ethscriptions VM primarily for parsing inscription transactions on Ethereum.
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PAMP: Meme coin on Ethscriptions VM
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Sols: Inscription assets on Solana
Drivers Behind Ecosystem Prosperity
Over the past three months, Bitcoin miners’ income has significantly increased. In November, the share contributed by on-chain fees rose from 2.4% on August 19 to 23.46% on November 16. This growth is primarily driven by the introduction of Ordinals-related transactions, indicating that the development of the Bitcoin inscription market has substantially boosted miners’ fee income proportion. By April 2024, when Bitcoin undergoes its next halving, this ratio could reach 50%.
Currently, due to most U.S. Bitcoin mining operations running at a loss and semiconductor industry facing process bottlenecks, the mining hardware arms race has slowed. As a result, miners may turn to Bitcoin inscriptions as a new revenue stream. For example, within less than a year of Ordinals’ launch, over 50,000 tokens have been issued, with minting and trading volumes rapidly growing—greatly increasing miners’ fee income.
The expansion of the inscription sector not only drives miner revenue growth but may also become a major catalyst for the Bitcoin inscription space. However, miners care more about increasing transaction volume than fluctuations in inscription prices.
The main reason is the staggering fee consumption of inscriptions themselves. Taking the recent normal rate of 200 sats/vB as an example, the image content of this Bitcoin Frogs inscription is 3078 bytes (3KB), consuming 610,000 sats in fees—not including other content or acceleration fees. 610,000 sats equals approximately 0.0061 BTC (1 BTC = 100 million sats). The entire Bitcoin Frogs collection consists of 10,000 pieces, meaning deployment alone would cost the team 61 BTC—excluding other expenses. At $40,000 per BTC, the gas cost for this single image amounts to $244, and the total collection cost exceeds $2.44 million. Community interviews revealed some teams spent tens of millions of dollars deploying NFTs. This represents only the project team’s minting cost. For users minting inscriptions, gas levels around 200 sats/vB translate to $100–$300 per inscription. High costs combined with absolutely fair launches have created an ideal meme playground.
Key Data
Transaction data on the Bitcoin network shows BRC-20 and Ordinals transactions now constitute a significant portion—sometimes exceeding 50%. Clearly, inscription assets already occupy a substantial share of the Bitcoin ecosystem, making it hard to imagine this asset class disappearing entirely.
New assets often come with new trading platforms. Early markets were dominated by community-built marketplaces. As the sector matures, current trading volume and transaction counts are now primarily controlled by three giants: OKX, UniSat, and Magic Eden. Beyond their native traffic advantages, superior user experience plays a crucial role.
Some Conclusions
BTC ecosystem infrastructure has progressed in several ways:
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Increased on-chain information complexity
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Enhanced off-chain computation and storage capabilities
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Many new projects are bringing Ethereum-proven technologies like zk into the Bitcoin ecosystem for off-chain scaling purposes
While these infrastructure improvements don’t offer absolute advantages over other L1/L2 ecosystems like Ethereum in terms of scalability, security, and decentralization, they represent 10x to 100x gains within the Bitcoin ecosystem—sufficient to support user and asset growth for some time. The technical approach of inscriptions can be simply understood as placing security, consensus, and liveness on the BTC chain, while settlement relies on indexers.
From a use case perspective, the fair launch model of inscriptions is a sufficiently significant innovation to drive this round of Bitcoin-sector momentum.
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Due to programmability constraints, inscriptions are inherently fair launches—nearly impossible to implement discriminatory mechanisms like pre-mining during ICOs, vesting for DeFi tokens, or whitelist systems for NFTs. Once the standard format is published, minting is immediately supported (users can even mint early, though likely ignored by indexers), with inclusion determined solely by the miner network. The process is extremely fair, purely competing on information asymmetry and willingness to pay gas fees.
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As tools and tutorials spread, entry barriers are gradually lowered—leveling the playing field between retail users and experts through easier no-code minting/trading tools, and neutralizing insider advantages via bots monitoring on-chain inscription activity.
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Infrastructure limitations still hinder serious teams from building complex use cases, and user quality remains mismatched—making it difficult to achieve competitive advantages beyond new asset categories compared to other ecosystems.
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Essentially, this is a market cycle driven by new asset categories created with existing technology—its upward trajectory synchronized with macroeconomic trends.
Underlying reasons for the emergence of numerous high-value assets and resulting ecosystem prosperity:
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The BTC ecosystem largely missed the last 1–2 bull markets; miners need new income sources, and creating better wealth opportunities aligns with this demand.
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Fair launches become easier to succeed in late bear markets, as market sentiment is more responsive than at bull peaks or early bear phases.
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Technological constraints ensure absolutely fair launches, making retail investor profits possible in bear markets and inevitable in bull markets.
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The BTC network is robust enough to rarely suffer downtime or errors, ensuring asset safety and user experience for the vast majority.
How Will the Ecosystem Evolve Next?
Based on extensive interviews with community users and project teams, we draw preliminary conclusions and make forward-looking inferences.
Preliminary conclusions:
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Currently limited by infrastructure maturity, applications struggle to achieve complexity; the dominant use case for inscriptions remains memes.
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User acquisition and retention heavily depend on fair launch characteristics.
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Utility for inscription assets is currently limited to very simple scenarios like staking for new mints.
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Few teams are seriously building complex applications.
Inferences:
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Fair launches as an asset issuance method have fundamental flaws.
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Project teams lack long-term incentives to build sustainably, leading to frequent abandonment.
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Users focus solely on asset returns, potentially causing bad money to drive out good.
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During the upcoming bull market, other ecosystems will launch more high-quality projects matured during the bear period, potentially drawing capital away and further depressing average price performance of fair-launch projects.
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Inscribing is a good way to fairly distribute benefits to users, ensuring fairness among participants.
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Inscribing is cheaper and safer than direct interaction with smart contracts.
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It only consumes gas for one simple transaction.
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It does not involve transferring assets within the user’s wallet.
Potential emerging market needs:
Inscription-Based Asset Trading Platforms
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New asset classes spawn new trading scenarios, possibly leading to new trading platforms.
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However, as shown in prior data, current Ordinals and BRC20 assets are dominated by OKX, UniSat, and Magic Eden, which have captured market share from earlier community-built exchanges through superior UX.
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If new asset classes emerge, there may be opportunities for trading platforms supporting alternative standards. The earliest platforms with best product experience may gain advantage.
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Standards like ORC, ARC, Stamps, etc.
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Smaller ecosystem size requires more time to develop.
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Inscription standards on other chains.
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Already gaining attention (though still small), but due to generally lower gas and higher throughput on other chains compared to BTC, opportunities for high-value assets may be limited—though long-tail asset volume remains meaningful.
Faster and Safer L2s
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When the bull market arrives, BTC network gas fees will rise, creating demand from new users for lower transaction costs—similar to how high L1 gas during the last DeFi cycle drove users to L2s.
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Inscription assets on L2s, benefiting from lower transaction costs, can enable more complex DeFi mechanics.
Bitcoin-Native DeFi
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DeFi built directly on Bitcoin using inscriptions.
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Opportunities for new stablecoins arising from inscription asset trading demand—possibly overcollateralized minting of transparent assets.
Cross-Chain Bridges
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Enable liquidity beyond exchanges to enter the Bitcoin ecosystem.
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Requires strong BD and ecosystem capabilities.
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Competitors include Thorchain, Multibit, Polyhedra, etc.
More Complex Protocols or Applications Based on BRC Standards
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New asset classes bring users, generating demand for higher-complexity applications (mirroring the path taken by EVM ecosystems: ICOs, DeFi, gaming, etc.).
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May see innovative mechanics (bringing fair-launch characteristics of inscriptions into DeFi or even gaming).
Transaction and usage scenario segmentation caused by inscription behaviors across different use cases may create new tool opportunities on BTC or other chains.
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Use inscriptions to create and transfer assets, while executing other logic via on-chain contracts.
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Use inscriptions for user actions requiring guaranteed fairness, such as claiming airdrops.
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Use inscriptions for user actions requiring guaranteed security, such as registering asset ownership.
Projects or platforms for inscription categories on other chains
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Replicate proven methods of creating new assets into other ecosystems.
Summary
The emergence of new asset classes always brings new users and new capital flows—exciting opportunities. These opportunities may arise on the infrastructure, platform, or application sides. Yet, new asset classes inevitably repeat historical cycles: early consensus formation, rampant issuance of low-quality tokens, rapid overheating, temporary return to rationality, surviving projects accumulating value, eventual breakout, and establishment of next-stage consensus. Inscriptions represent not just Bitcoin’s revival, but perhaps blockchain’s renaissance. The demand for fair launches will always exist, and so will meme coins. We believe the Bitcoin ecosystem will undergo another wave of consolidation—existing players may seize massive growth opportunities, while new entrants have ample chances to challenge market leaders.
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