Research Summary
The report discusses the development and impact of new protocols like Ordinals, BRC-20, Atomicals, and Pipe on the Bitcoin ecosystem. It highlights the roles of key individuals such as Casey Rodarmor, the creator of Ordinals, and domo, the anonymous developer behind BRC-20. The report also explores the intricate governance models introduced by developer Beny and the emergence of the Atomicals Protocol.
Key Takeaways
Ordinals and BRC-20: A New Era for Bitcoin
- Introduction of Ordinals: In December 2022, Casey Rodarmor launched the Ordinals protocol, which assigns a unique serial number to each satoshi and allows additional data to be attached to these satoshis. This protocol was initially used to create NFTs on Bitcoin.
- Emergence of BRC-20: On March 8, 2023, an anonymous developer named domo launched BRC-20 based on the Ordinals protocol. BRC-20 is a token issuance protocol that allows tokens to be issued on Bitcoin, a concept that was initially met with surprise and intrigue.
Beny’s Nested Governance Models
- Beny’s Contributions: Beny, an active developer in the community, launched several projects including the BRC-20 proxy tool LooksOrdinal, TRAC, the Tap Protocol, and the Pipe protocol. These projects are interconnected, creating a nested governance structure.
- Unique Token Strategy: All 21 million TAP tokens, the governance token for the Pipe protocol, are currently held by Beny, with none in circulation. The market has access to the first token -TAP from Tap Protocol. The project team plans to use TAP for financing and governance, with a portion to be airdropped to holders of TRAC, -TAP, and PIPE.
Atomicals Protocol: A Rising Star
- Launch of Atomicals: After identifying shortcomings in the Ordinals protocol, an anonymous developer launched the Atomicals Protocol in September 2023. The protocol, which took 6-7 months to develop, has several key differences from Ordinals, including its closer alignment with Bitcoin’s technology and its own token issuance protocol, ARC-20.
- Community Reception: The comprehensive nature of the Atomicals Protocol, marked by its lengthy development time and the variety of scenarios and features it considered, has earned it significant respect within the community.
Runes: Casey’s Defiance and Innovation
- Introduction of Runes: Casey, critical of BRC-20’s impact on Ordinals, introduced the idea of a homogenized token protocol based on Bitcoin, named Runes. Runes is based on UTXO technology and aims to bring more transaction fee revenue, developers, and users to the Bitcoin ecosystem.
- Anticipation for Runes: Despite delays due to ongoing upgrades to the Ordinals protocol and minor bugs, the launch of Runes is highly anticipated in the Bitcoin ecosystem.
Actionable Insights
- Understanding the Impact of New Protocols: The emergence of protocols like Ordinals, BRC-20, Atomicals, and Pipe have significantly impacted the Bitcoin ecosystem. Understanding these protocols and their implications can provide valuable insights into the evolving landscape of Bitcoin and blockchain technology.
- Exploring Nested Governance Models: Beny’s nested governance models present a unique strategy in the current landscape of Layer 1 technology. Studying these models can offer a deeper understanding of governance structures in blockchain projects.
- Recognizing the Potential of Atomicals: The Atomicals Protocol has garnered significant attention due to its comprehensive nature and alignment with Bitcoin’s technology. Monitoring the development and adoption of this protocol can provide insights into its potential impact on the Bitcoin ecosystem.
- Anticipating the Launch of Runes: The upcoming launch of Runes, a homogenized token protocol based on Bitcoin, is highly anticipated in the Bitcoin ecosystem. Keeping an eye on this launch can offer valuable insights into its potential impact and reception.
