Original - Odaily
Edit - 0xAyA
With the rise in currency prices, the Bitcoin ecosystem has experienced a major explosion in recent days, and various derivative protocol ecosystems have also become hot. Among them, the Ordinals protocol and its BRC 20 token standard have attracted the most attention.
However, the influx of a large amount of hot money has also gradually reduced the expected profit space of Ordinals. For players who are eager to obtain alpha returns (excess returns), the profit-loss ratio is also gradually getting worse. Within the Bitcoin derivative ecosystem, are there any tracks worth betting on? This article will briefly introduce the more halal Atomics protocol and its ARC-20.
introduce
The ARC-20 token standard is provided by the Atomics protocol and is minted and transferred based on BTCs UTXO. Its basic unit atom is composed of sat, the smallest unit of Bitcoin, which means that each unit of ARC-20 token is always supported by 1 sat, that is, 1 Token = 1 sat. At the same time, ARC-20 is also the first token protocol to mint inscriptions through POW, which means that participants can directly mine inscriptions/NFTs like they used to mine Bitcoin.
1 Token = 1 sat has many benefits. First of all, by definition, the value of each token will never be less than 1 sat, which is equivalent to sat acting as a digital gold anchor to support the value of the token; furthermore, when verifying a transaction, you only need to query sat The corresponding UTXO itself can be used; secondly, unlike BRC 20, which needs to record the ledger status off-chain and perform two-step transactions through a third-party sequencer, all execution operations of ARC-20 can be completed by relying on the BTC network, without adding additional steps; finally, thanks to the composability of UTXO, the direct swap between ARC-20 tokens and BTC is theoretically achievable. This underlying design advantage enables ARC-20 to be used after the birth of related tools in the future. Have better liquidity.
The Atomics protocol also provides Bitwork Mining prefix parameter settings for ARC-20. The issuer of the token can choose a special prefix, and users who want to mint must calculate the matching prefix through CPU mining before they can obtain the mint. Eligibility for this ARC-20 token. Here, the main body involved in the minting actually changed from the wallet to the CPU. This idea of one CPU, one vote coincides with the philosophy of Bitcoin OGs.
ARC-20 faithfully follows the Not your keys, not your coins principle advocated by Bitcoin OGs, and is closer to BTC fundamentalism in both principle and actual participation. It can be said that ARC-20 tokens Its BTC itself.
Differences from other protocols
Due to the characteristics of the underlying design, ARC-20 is significantly different from other protocol tokens. Please refer to the figure below for details:
As can be seen from the table, the ARC-20 token standard benefits from the UTXO binding design of the Atomics protocol, which cleverly avoids the complexity faced by the BRC-20 standard (such as twice sorting, adding useless transactions, etc.). On the whole, it is closer to the native characteristics of Bitcoin and leaves room for possible NFT/domain name expansion later. More importantly, ARC-20 is overall more consistent with the philosophy of Bitcoin OG, and is therefore more likely to receive support from the core community than the Ordinals ecosystem.
Ecological situation
Due to the current imperfections in the construction of tools and protocols, there are fewer tokens issued based on ARC-20, and most of the funds are concentrated on the first token ATOM. For specific token data, please refer tohere。
There are currently two markets that support ARC-20 token trading, namely SatsX@SatsXioand Atomics Market@atomicalsmarket。
Due to the characteristics of ARC-20, the purchased Token may be treated as ordinary sat and consumed as handling fees. Therefore, please be sure to create an independent wallet to receive related assets of the Atomics protocol. You can useAtom WalletorWizz Wallet。
Conclusion
As the Bitcoin ecosystem flourishes, more opportunities are emerging.
Compared with the popular Ordinals ecosystem, the Atomicals protocol and its ARC-20, which are closer to Bitcoin fundamentalism, still have huge untapped potential and may be able to provide investors with more choices and opportunities.
There are many new things emerging in the Bitcoin ecosystem, and Odaily will continue to pay attention. Readers who are interested in Bitcoin ecology are also welcome to add the official WeChat account (Odaily 2018 or odaily 001) to join the community.
