The birth of Ordinals allowed Bitcoin to break the narrative of a single peer-to-peer electronic cash system. Subsequently, various asset protocol standards based on Ordinals, XRC-20, were created, leading to an explosion of inscriptions and runes, and triggering a bottom-up change in the token issuance and distribution model. Ordinals and Runes were developed by Casey Rodarmor, and these protocols brought innovative features to the Bitcoin network. Casey Rodarmors contribution to the Bitcoin community is not only reflected in technological innovation, but also in his active participation in community governance and developer support. His work encourages more developers to participate in the Bitcoin ecosystem and promotes the development of Bitcoin technology and the popularization of its applications.
This is the 3rd issue of the Developer Stories column, which will provide a better understanding of the Bitcoin world from the perspective of Casey, the founder of the Ordinals and Runes protocols, and the OKX Web3 wallet Bitcoin ecosystem team. This issue covers the latest progress of the Ordinals and Runes protocols, Bitcoin development, developer construction, community governance and other aspects, aiming to gain an in-depth understanding of the insights and plans of Bitcoin core developers.
Quick overview of the key points of this article
1. Inscriptions on other blockchains are just copies of BRC-20, which seems redundant considering that other blockchains already have native fungible token protocols.
2. Except for the Lightning Network, all other Bitcoin second-layer solutions are castles in the air. None of them have users, good implementations or clear paths to success. It is wise to ignore them until they are truly implemented.
3. Ultimately, the only important narrative about Bitcoin is high-energy digital gold and hard currency, and everything else is irrelevant.
4. In the future, the development of Bitcoin will mainly focus on upgrading and expanding its functions.
Have Runes and Ordinals exceeded expectations so far, or fallen short?
Cesay: Frankly speaking, I dont pay much attention to adoption, growth rate or market value because I am not a promoter or speculator. When creating Ordinals, inscriptions and Runes, my only goal was to build the best protocol. As for adoption, in addition to solving bugs and adding new features, it all depends on Gods will. Some people complain that the token symbol name is too long, but I dont think it is a problem because the short symbols will all be unlocked in the next 4 years, so be patient!
The biggest achievement of Runes and Ordinals is ease of use. Many people have reported that Runes is easy to use and the software works well compared to other standards, which is very good feedback to me. Runes is a complete protocol that was released with a clear specification and open source implementation, including wallets, indexes, and browsers. I havent dug into other alternative token protocols, but Runes is simpler and more efficient than BRC-20 because transfers only require one transaction instead of two.
What stage are the inscriptions and rune narratives at? How will the Bitcoin ecosystem regain attention in the next stage?
Cesay: Ordinals, inscriptions, and runes are all in the hands of the users. Future technological development will almost certainly come from improvements in Bitcoin itself. Bitcoin leads the market, and the market has cycles. Accumulate more Bitcoin and wait patiently.
Regardless, inscriptions and runes establish a fee market that is very important to the long-term health of the Bitcoin network. I think that regardless of their popularity, they will always provide some support for reducing Bitcoin transaction selling pressure.
OKX Web3 Wallet Bitcoin Ecosystem Team: On the one hand, the inscription track has brought a new model of fair launch to retail investors and brought huge attention to the Bitcoin ecosystem; on the other hand, according to OKLink data, the income of Bitcoin miners from handling fees has accounted for more than 10% since December last year, which has also brought tangible benefits to miners. I believe that driven by the Bitcoin ecological community of interests, the inscription ecology and asset issuance protocol on Bitcoin will enter a new period of exploration and development. (For more data, refer here: https://www.techflowpost.com/article/detail_16233.html)
In addition to Bitcoin, is it necessary for other public chains to develop inscriptions or runes?
Cesay: As far as I know, inscriptions on other blockchains are just copies of BRC-20, which seems redundant considering that other blockchains already have native fungible token protocols.
But if developers choose to continue building in the Bitcoin ecosystem, they must accept that Bitcoin development is slow and conservative. My advice to new developers is that unless you particularly like working on Bitcoin Core, find a way to build your project without changing the underlying network.
You have been skeptical or even doubtful about Bitcoin Layer 2. Does Bitcoin need Layer 2?
Cesay: Except for Lightning Network, all other Bitcoin Layer 2 solutions are castles in the air. None of them have users, good implementations or clear paths to success. It is wise to ignore them before they are actually implemented.
Will the new asset issuance protocol and expansion plan bring new risks to the Bitcoin network?
Cesay: The only potential risk is that if a protocol were to extend Bitcoin to allow for the development of automated market makers (AMMs) similar to Ethereum, it could lead to a harmful maximum extractable value (MEV). I take this risk very seriously because we have already seen its negative effects on Ethereum.
OKX Web3 Wallet Bitcoin Ecosystem Team: The various asset issuance protocols that appeared on the Bitcoin network have been very popular some time ago, and there are also many users trading these assets on the OKX Marketplace. However, this has also caused serious congestion on the Bitcoin network and affected other transactions on the Bitcoin network. From this point of view, excessive speculation on new assets has some negative effects on the Bitcoin network. Therefore, various Bitcoin second-layer networks have also appeared on the market to relieve the pressure on the Bitcoin main network. At present, each company has its own technical solution, and it is still not clear which solution is better, as it is still in an early stage.
What are the main technical innovation directions of Bitcoin in the future? What are the developments worth paying attention to?
Cesay: I don’t know which proposals will eventually be adopted, but I think the current batch of soft fork proposals are reasonable and interesting.
OKX Web3 Wallet Bitcoin Ecosystem Team: In the future, the development of Bitcoin will mainly focus on the upgrade and expansion of Bitcoin functions. The Bitcoin network supports more opcodes, which can support more complex protocols. For example, the recent OP_CAT has been highly discussed and may be restarted on the Bitcoin network. At the same time, the small capacity and slow speed of the Bitcoin network are gradually unable to adapt to the current user needs. Therefore, there are many Bitcoin expansion plans and Bitcoin staking plans, which are all worthy of attention. For example, the current Bitcoin ecosystem has a lot of second-layer networks, and their technical solutions are also different. They are still in the exploratory stage, and we are also paying attention to them.
At the same time, we are also maintaining communication with developers in different fields and paying attention to other technological developments, such as RGB-related protocols, Lightning Network, and Bitcoin-related staking protocols.
How do you view the relationship between Bitcoin and traditional financial markets?
Cesay: Bitcoin may become more and more like a reserve currency and hard currency, and in the future it may be similar to the role of real estate in traditional financial markets.
OKX Web3 Wallet Bitcoin Ecosystem Team: The approval of the Bitcoin spot ETF means that Bitcoin is beginning to gain wider recognition in the traditional financial market. Through ETFs, traders can hold Bitcoin indirectly without having to directly purchase and store cryptocurrencies. This helps lower the investment threshold and allow more institutions and individuals to participate. For those traders who were previously hesitant due to regulatory or custody issues, ETFs provide them with a regulated and familiar investment tool. This will greatly enhance the legitimacy and credibility of Bitcoin.
The relationship between Bitcoin and traditional financial markets will become closer. ETF products make it easier for Bitcoin to be included in investment portfolios, especially those diversified institutional portfolios. For example, retirement funds, pension funds, and wealth management companies may include Bitcoin ETFs in their asset allocation. This integration will further consolidate Bitcoins role as digital gold and a hedge against inflation.
In the long run, the passage of ETFs may trigger more institutional funds to enter the Bitcoin market. As more traditional financial institutions join in, it may drive Bitcoin prices up further. At the same time, this also means that the Bitcoin market will become more mature and stable, getting rid of the extreme volatility of the past.
Bitcoin will not be the next Ethereum, what is your long-term vision for Bitcoin?
Cesay: Ethereum’s ecosystem is not prosperous, or its prosperity is like the prosperity of Las Vegas, a meaningless casino that provides no real utility to anyone. The only important narrative of Bitcoin in the end is high-energy “digital gold” and hard currency, and everything else is a side issue.
OKX Web3 Wallet Bitcoin Ecosystem Team: Currently, the Bitcoin ecosystem is still in its early stages, but the popularity of BRC-20 has aroused the publics passion for more narratives in the Bitcoin ecosystem. Since BRC-20, many builders are still exploring more possibilities for BTC, hoping that Bitcoin will not only have the attributes of digital gold. However, in the long run, with the innovation of various communities and builders, Bitcoin will find its own native application scenarios that are different from Ethereum and usher in its own spring again.
The last question is for OKX Web3. What have you done to build the Bitcoin ecosystem?
OKX Web3 Wallet Bitcoin Ecosystem Team: OKX web3 wallet actively supports the construction of the Bitcoin ecosystem. The wallet supports Bitcoin and sub-type Bitcoin on multiple terminals (App, plug-in, Web), and multiple Bitcoin Layer 2 networks (B² Network, Merlin Chain). It also supports multiple Protocols such as Ordinals, Atomicals and Runes. At the same time, it is also actively cooperating with builders of other Bitcoin ecosystems.
1) From the perspective of Marketplace, OKX Marketplace also supports the trading of Ordinals, Atomicals and Runes assets, supports assets of multiple protocols, and will expand more protocols in the future.
2) From the tool perspective, OKX also has professional tools to engrave, split or merge Runes, as well as UTXO management tools. The OKX Water Center also provides developers with a test token collection service for the BTC ecosystem.
3) From the perspective of Defi, OKX and Babylon have also started cooperation to develop a special Babylon gameplay area. Cryptopedia has also launched multiple staking activities in the Babylon ecosystem to let users better understand the Babylon ecosystem.
We are also supporting Bitcoin developers. On the one hand, we support various projects in the Bitcoin ecosystem and actively cooperate with them. For example, we cooperate with various new projects on Bitcoin through Drops, Cryptopedia and other sections, so that more users can better understand the Bitcoin ecosystem and participate in the Bitcoin ecosystem. On the other hand, in the Bitcoin ecosystem, we also have close cooperation and communication with developers. For example, we regularly communicate with developers of Ordinals, BRC 20, and Atomicals to understand the latest progress of the protocol/project and provide support for their development.
About the Developer Stories column
Web3 developers have made important contributions to the development of the crypto industry. Their innovative spirit and technical capabilities have injected lasting vitality and momentum into the development of the entire industry, not only improving the technology itself, but also providing support for future application scenarios and business models. However, although they are active, they are rarely paid attention to. The Developer Story column launched by OKX Web3 and Chain Catcher aims to understand the development context, technical insights, latest developments, market changes, hot comments, etc. of different public chains from the perspective of developers through dialogues with core developers of different public chain ecosystems and the OKX Web3 technical team, enhance the voice of Web3 developers, approach these most active and interesting people, and provide them with the greatest support.
Disclaimer
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