Merlin Protocol, a professional Bitcoin ecological asset adaptation protocol
Author: Merlin Developer Team
With the vigorous development of the Bitcoin ecosystem in the past two years, a large number of crypto asset classes based on BTC assets have been generated on the Bitcoin network, including: Inscription NFT, BRC 20, SRC 20, Bitcoin computing power derivatives and other Bitcoins ecological assets. According to current market estimates, the total market value of Bitcoin ecological crypto assets is approximately US$900 billion, including the Bitcoin network’s native assets BTC, BRC 20, SRC 20, and Bitcoin computing power.
As we all know, Bitcoin is the worlds earliest blockchain project and encrypted asset. However, the Bitcoin network does not directly support the operation of smart contracts. Simple and basic logical operations can only be realized through scripts and other extended protocols. Ethereum is based on Bitcoin, adding an EVM virtual machine, which can complete logical operations and execution of any complexity; the birth of Ethereum marks the arrival of the blockchain 2.0 era. Therefore, after the emergence of the Ethereum network, the scalability issue of the Bitcoin ecosystem has become more prominent, so much so that during the Ethereum ERC 20 explosion in 2017 and the DeFi Summer bull market in 2020, the Bitcoin ecosystem has been in a state of turmoil. The state of bystanders exists, unable to directly participate in the new crypto wave.
The scalability problem of the Bitcoin network has always existed and has troubled some ecological developers, but everyone has not given up. So much so that in the recent wave of NFTs, phenomena such as Ordinals Protocol and Unisat Wallet have appeared in the Bitcoin ecosystem. level projects, and triggered a new wave of developers in the Bitcoin ecosystem, with new asset protocol categories and infrastructure projects such as BRC 20, SRC 20, and Bitcoin L2 network emerging one after another. But we cannot ignore the objective fact that the scalability problem of the Bitcoin network still exists and continues to affect the future development of the Bitcoin ecosystem in some way.
At the moment, the most intuitive point is: due to the characteristics of the Bitcoin network, the crypto assets with a market value of trillions of dollars in the Bitcoin network cannot fully release their liquidity value in the DeFi field, nor can they satisfy the growing demand of the ecological developer group. A legitimate demand for programmability (scalability) of crypto-assets on the Bitcoin network. This is the core issue that seriously affects the sustainable and prosperous development of the Bitcoin ecosystem at present and even in the future. In order to solve this problem, the Merlin developer team launched the Merlin Protocol, a professional Bitcoin ecological asset adaptation protocol.
Merlin Protocol builds a universal adaptation protocol dedicated to cryptoassets on the Bitcoin network. The Merlin team uses comprehensive technical solutions such as smart contracts, data oracles, encryption economic incentive mechanisms, and encryption algorithms to seamlessly adapt the encrypted assets of the Bitcoin ecosystem to the EVM ecosystem and the Bitcoin L2 ecosystem through the Merlin Protocol, directly solving the problem of Bitcoin The liquidity and scalability issues of network encrypted assets have opened up a new path for Bitcoin ecological developers.
At present, Merlin Protocol has realized the adaptation and issuance of crypto assets such as BTC, BRC 20 and Bitcoin computing power to the EVM network ecosystem. In the future, it will also be compatible with the issuance of other types of new crypto assets on the Bitcoin network, as well as the Bitcoin L2 innovative protocol. .
Through the Merlin Protocol, crypto asset issuers or developer teams in the Bitcoin ecosystem can run a Merlin Adapter exclusive to their own project assets, allowing community users to freely operate related crypto assets through the Adapter, such as transferring a BRC 20 asset from the Bitcoin network Adapt to the Ethereum network and then perform DeFi operations (Uniswap, Aave, MakerDAO), or return the BRC 20 assets from the Ethereum network to the Bitcoin network for long-term value storage and transfer operations.
Throughout the entire process, Merlin Protocol plays the role of the creator and maintainer of asset adaptation protocol standards. On the premise of ensuring the independence of user asset ownership, it provides developers with a set of underlying technical solutions with asset adaptation functions. Solution to ensure asset security and privacy protection during user interaction. Merlin Protocol opens a two-way revolving door to freedom for the crypto assets of the Bitcoin ecosystem. This greatly improves the liquidity and scalability of the crypto assets of the Bitcoin ecosystem and fully releases the power of the underlying Bitcoin network. Security consensus value and market consensus value of cryptoassets issued on the Bitcoin network.
Merlin Protocol, as the underlying infrastructure of the Bitcoin network’s encrypted asset adaptation protocol, has laid a solid foundation for the future development of Bitcoin assets into the world’s mainstream core assets. Finally, developers in the Bitcoin ecosystem are welcome to understand and use the Merlin Protocol to increase the freedom of more crypto-assets on the Bitcoin network!
