UniSat Founder Lorenzo Talks About the Bitcoin Ecosystem and the Future of Ordinals

Challenges and Opportunities in the Bitcoin Ecosystem

The Bitcoin halving will continue to put survival pressure on miners. After each halving, miners with high operating costs may face the risk of shutting down and exiting the network. This has been a problem since the design of Bitcoin.

Although the halving may lead to a decrease in hash rate and volatility in the short term, the overall trend of Bitcoin network hash rate growth will not change in the long run. The growth of the hash rate reflects Bitcoin's increasing recognition and support.

The Ordinals technology provides miners with a new source of income. When users mint various digital collectibles on the blockchain, a portion of the value is obtained by the miners. If the Ordinals application can scale, it is expected to become one of the more stable sources of income for miners, playing an important role in alleviating the pressure brought by halving.

Overall, the halving is a challenge that the Bitcoin ecosystem needs to face, and Ordinals provide miners with opportunities to cope with pressure and gain additional income. This not only helps to enrich the application scenarios of Bitcoin but also allows miners to remain active in the Bitcoin ecosystem.

Development and Future Prospects of BRC20

BRC20 adopts a simple and elegant design philosophy. It does not have overly complex mechanisms but is implemented based on some basic concepts, led by the designers. This simple and stable protocol has strong vitality.

However, currently BRC20 is still a relatively closed system. When new developers come in, it is difficult to implement new features without system support.

To address this issue, the modular design of BRC20 is being explored, hoping to gradually transform BRC20 from a closed system to an open system to support more innovative applications from developers. Currently, there are also teams collaborating on a modular direction for EVM and BRC20 interaction.

In addition, BRC20 has cross-chain potential. BRC20 itself is loosely coupled with the Bitcoin infrastructure, which means that the connection between BRC20 and the Bitcoin architecture is not tightly integrated, but rather relatively independent and flexible. This characteristic provides BRC20 with the flexibility to interact with external chains, making cross-chain value creation possible.

In summary, the exploration of BRC20 in the direction of modularization is expected to create an open cross-chain application architecture that supports the construction of a richer Bitcoin application ecosystem.

Technical Solutions to Address BTC Mainnet Congestion

The congestion of the BTC mainnet is an important issue that the Ordinals ecosystem needs to face and solve.

The industry has already recognized the severity of this issue and is exploring technologies from multiple aspects. In the latest developed decentralized trading products, a rollup technology solution has been adopted.

Rollups can batch process and package users' transactions before writing them to the main chain. This mechanism can significantly reduce the total number of transactions that the main network needs to process, helping to alleviate congestion. Compared to directly writing to the main chain, Rollup transactions place less load pressure on the main network. This can prevent a large number of Ordinals transactions from congesting the Bitcoin main network.

In addition, the industry is also exploring other more radical technical solutions to further enhance scalability. It is hoped that the congestion issues that blockchain applications may face can be gradually resolved.

Bitcoin Ecosystem New Product Planning

Some new products currently under development and planning include:

1. Indexer(: Provides indexing functionality for BRC20, now in use.

2. Decentralized Trading Protocol: Supports trading between Ordinals assets. This protocol will be 100% open source in the future. It adopts a relatively conservative Rollup solution to reduce congestion pressure on the mainnet by processing wrapped batch transactions.

3. Mobile App: A mobile application that improves user experience and is interoperable with the existing Chrome extension wallet.

4. Open Game Framework: Allows users to freely develop blockchain games within the framework.

The industry will continue to develop more innovative BRC20 applications and collaborate with the community to promote the development of Ordinals and the BRC20 ecosystem.

Community Co-Building Concept

The development of the Bitcoin ecosystem requires more community communication and cooperation. In the future, there may be more emphasis on communication with other projects in the community to enhance mutual understanding and explore the possibilities of collaboration.

At the same time, some existing technological accumulations will be made open. We will continue to promote open-source work, making as many technologies as possible open-source, and sharing tools that can be packaged and made available for users or other developers to use.

This open and transparent attitude will help more people participate in innovation and achieve a win-win situation. This is an important concept for promoting the co-construction of the Ordinals and BRC20 ecosystem.

Conclusion

The Bitcoin ecosystem is迎来新的发展机遇. By supporting Ordinals and BRC20, we can support a rich variety of blockchain applications through simple and elegant protocol designs, and co-build an open and win-win platform with the community, promoting new developments in Bitcoin technology.

Looking to the future, the industry will continue to focus on the construction of the Bitcoin ecosystem, working together with the broader community to realize more possibilities in the Bitcoin world.