Research Summary
This report discusses the evolution of Bitcoin’s narrative and the significant developments in its network, such as the introduction of inscriptions and ordinals. It also explores the potential of Bitcoin NFTs, the programmability of the network, and the impact of BRC-20 tokens. The report further delves into the debate about Bitcoin’s role as a programmable layer and the future of Bitcoin.
Key Takeaways
Bitcoin’s Evolution
- From Peer-to-Peer to Digital Gold: Since the publication of the Bitcoin whitepaper, the narrative of Bitcoin has evolved from a peer-to-peer payment system to a store of value and digital gold.
- Network Upgrades: Bitcoin has undergone multiple network upgrades, some of which have been controversial.
- Programmable Layer Debate: There is an ongoing debate about Bitcoin’s role as a programmable layer, with some advocating for its use as a base layer for more complex applications, while others argue for minimal experimentation.
Significant Developments
- Introduction of Inscriptions and Ordinals: The introduction of inscriptions and ordinals has sparked speculation about the potential of Bitcoin NFTs and the programmability of the network.
- Impact of BRC-20 Tokens: The creation of BRC-20 tokens, which leverage the ordinal theory to create ‘fungible’ pieces of token representation, has ignited the imagination of programmable Bitcoiners.
- Bitcoin Ordinals and Builder Culture: The advent of Bitcoin Ordinals has been seen as a sign of the “organic return of builder culture” to the network.
Future of Bitcoin
- Continued Activity: Despite initial hype quieting down, inscriptions and ordinals activity on-chain have remained active, with over 40% of all transactions on the Bitcoin network being ordinals and BRC-20 related since April 2023.
- Significance of Developments: The report questions whether ordinals and inscriptions are a passing fad or a significant development that could shape Bitcoin’s future.
Actionable Insights
- Investigate the Potential of BRC-20 Tokens: As BRC-20 tokens have sparked interest and speculation, it may be worthwhile to explore their potential impact on the Bitcoin network and their possible uses.
- Consider the Impact of Bitcoin’s Programmability: Given the debate around Bitcoin’s role as a programmable layer, it may be beneficial to consider the potential long-term effects of this programmability on the network.
- Monitor the Evolution of Bitcoin: As Bitcoin’s narrative continues to evolve, it is important to stay informed about new developments and their potential implications.
