Host | BMAN, ABCDE Labs
Guests | Jeff, Merlin Chain; Ryan Chow, Solv Protocol; Charlie Hu, Bitlayer; Stan, B2 Network
In this Twitter Space organized by ABCDE Labs, the guests share their thoughts and experiences. Jeff mentions that the complexity of bridging assets, such as BTC, BRC-20, NFTs, ETH, USDT, and Manta, has posed challenges. He highlights the importance of focusing on user experience and not overwhelming the platform with too many assets. Jeff also discusses the advantages and disadvantages of fair launches and the market pressure they can create.
CharlieHu emphasizes the need for differentiation in Layer 2 solutions for Bitcoin. He believes that only a few projects can truly drive the industry forward and gain mind share. Charlie highlights the importance of technological differentiation, product innovation, and cultural aspects in achieving this. He mentions Bitlayer’s efforts in these areas, including their work on BitVM and DLC.
Stan agrees with Charlie’s points and mentions that Bitcoin’s infrastructure is still lacking. B2 Network aims to address pain points and provide a modular architecture to expand Bitcoin’s capabilities. He explains the three layers of their architecture: the execution layer, the DA layer (data availability), and the consensus layer. Stan emphasizes the strength of Bitcoin’s consensus layer and the integration of off-chain mechanisms for validation.
Overall, the guests discuss the challenges and opportunities in the Bitcoin ecosystem, highlighting the importance of user experience, differentiation, and technological advancements.Transfer to the second floor. In any case, my coin is almost dead. I don’t sell it on the first floor, and I can’t sell it on the second floor. The coin has already been listed on the exchange, so I will bridge it into the exchange. That’s probably the situation.
But what’s the opportunity? The opportunity is that you will find that when BRC-20 comes, Runes will also take the same path. What does that mean? It means it will definitely have some leading coins, then they will be hyped up, and then they will be listed on centralized exchanges. Many coins, like ORDI and SATS, are now listed on centralized exchanges and have become a meme for trading. This is because the user groups on the chain and on the exchange are very different, and this user group will have a full turnover, eventually turning the coin into an exchange coin. Many of the large holders of ORDI, who had previously staked with us, never used Unisat at all because they completed the entire process of buying the coin on the exchange.
But once these leading coins are listed on centralized exchanges, the remaining coins will have very obvious liquidity depletion. Due to the difficulty in trading these mid-tier and bottom-tier coins on the first floor, including the efficiency of trading, and the efficiency of asset distribution, it leads to very high early costs. For example, the cost of issuing coins like BRC-20 is already in the tens of millions of dollars. This cost is seen as a burden to users. So the liquidity in the secondary market needs to be very good in order to make up for these costs and keep the coin rising. So you will find that, apart from ORDI and SATS, many other communities have encountered significant liquidity problems. Where is the opportunity on the second floor? You will find that whether it’s the MEME on Solana or the MEME on Base, the process of issuing assets, such as who will participate, will have a very smooth process, and the cost will be very low.
The second opportunity is in DeFi, creating pools. DEX has been tested and proven to be the best way of issuance, so creating a pool on the second floor will quickly drive up the price. Of course, it could also quickly drop to zero, as we see every day, but it can also quickly rise. The early MEME tokens on Merlin, for example, will rise very quickly. At this time, more and more people issuing MEME coins will feel that if they issue on the first floor, they will either incur tens of thousands or even millions of dollars in costs, or the users will incur these costs. And you will find that BRC-20 has already proven that this model is inefficient, so the opportunity may lie in the Runes on the second floor. Of course, all of these things are still early. We are actually doing the Runes incubator recently, together with OKX Venture and others to take a look.
Whether it’s overseas or in Asia, I think there are many things that developers can build. But if Runes ends up taking the same old path as BRC-20, and if we in Layer2 don’t provide help, I personally think it would be a pity.
BMAN: On the opcode side, there is a new OP_CAT that actually provides the ability to create script fragments for UTXOs. So I want to ask everyone, what impact and variability will it bring to the entire Bitcoin ecosystem? And do you think it will have a major impact on the overall development, including Layer2 development in the future?
Jeff: Let me briefly say that this will have a significant impact on the entire ecosystem. But I think the occurrence and the effectiveness, and subsequent large-scale expansion, will take quite a long time. Of course, the ability to run a certain amount of smart contracts on Bitcoin is definitely helpful for the entire ecosystem, including Layer2. But I believe that in reality, its development cycle and cost structure will not be of much help in the short term.
Now, for any Bitcoin Layer2 project involving a large amount of fund custody, fund security is always the most important part. When we went online in February, many people thought that the funds were not secure and that there were bugs in the deposit and withdrawal process. Many people also know that there are many funds on Merlin, and bad actors and hackers have the desire to attack them. So how do we do this well? We hope to find a compromise between stability, security, and smart efficiency. We’ve recently seen many projects working on Rune bridges and Script bridges, and we’ve looked at their plans, and to be honest, they’re still quite dangerous. This, and the many developers present, like if you’re going to develop a Rune bridge, or do chain development, for example, like Rune’s current index, which only has Unisat’s, and everyone uses its indexer, and everyone also knows that BRC-20’s indexer often has some minor issues. Not fatal, but there are minor issues. But as soon as the bridge’s own liquidity custody mechanism, where all the Runes on the first floor exist, and the entire bridge process is instantaneous. Our Rune bridge is almost complete, whether it should be delayed or instantaneous, for example, we’ve delayed it for three days, which I think is very fast for a Layer2 official bridge. Of course, users will definitely think it’s not fast enough, so many projects are doing instantaneous bridges, essentially leaving all the decisions to the machine. Because of the lack of multi-party indexing capabilities, but once there is a problem with the intermediate index, or if there is a deviation in the bridge information, the entire machine will execute your Runes, and there may be bugs in the middle, because the technology itself is still not perfect. Before going online, Casey also fixed a bug because the protocol itself and the indexing are not perfect, leading to financial losses. Like the several tens of millions of dollars and more than three or four million U.S. dollars worth of Dog Runes on our chain. So I think that often, when the technology is not mature, we still need to prioritize stability and security. Many projects are now trying to promote this real-time and fast concept, but as a developer, I still have many concerns about it, this is my personal opinion.
CharlieHu: This is an interesting dynamic in the Bitcoin community, or it’s a dispute between the two different factions. The radical faction hopes that OP_CAT will pass as soon as possible, so that many things that cannot be done now can be done, but this will to some extent bring some security risks, and even sacrifice some of Bitcoin’s existing basic principles, so this will make some of Bitcoin’s OGs, including those who are absolutely against it. I recently observed a technical OG in the Bitcoin community, there are now five people maintaining the core report code of Bitcoin, and they have gone around several of them to start pushing this thing. I think it’s a bit of a joke to say it’s a rebellion in the community. I think it’s something, and there will be some consensus, some differences, or even some possibilities of destruction, but it’s not that fast. I personally have a cautious and pessimistic attitude towards the landing of OP_CAT and the subsequent promotion of BIP, and I think that to what extent it will really promote the current development of Bitcoin’s ecosystem is a question mark.
For us, doing BitVM, our view remains the same, that BitVM does not require a hard fork or waiting for OP_CAT and BIP, and can do proof with the existing upcode and scripting languages. Assuming that we don’t have OP_CAT, we don’t have BIP, Bitcoin doesn’t need a complete network upgrade to do these things. I just mentioned that Ethereum has a lot of politics, a lot of personal relationships, a lot of governance, and a lot of things that V God likes or doesn’t like. This is not to say that we’re going to be talking about Ethereum. There are some things on Bitcoin that are different, but they are more decentralized, including Luke’s statement last year that he wanted to get rid of BRC-20. This is what he said, and it certainly led to some debates, some arguments, all for the good of the community, for the good of the ecosystem. I think there will be some consensus between some, and some differences, or even some possibilities of destruction, but it’s not that fast.
I think this time in Hong Kong, I also want to discuss with some of our overseas investors, as well as some advisors, what’s going to happen in the next few months, and there will definitely be some tone-setting, how the Bitcoin ecosystem will evolve after the 2024 halving? I think there will be some things happening between the Hong Kong conference in May and the U.S. conference in late July, and we need to pay close attention to these areas.
Baiyu (CKB): First of all, I think the first layer is now in protocol competition, and Runes is one of the protocols. I think it doesn’t fundamentally change BRC-20, it’s just some optimizations in the details, that’s my most fundamental view. Of course, Casey has made a huge contribution, and the historical position of Ordinals cannot be shaken, that’s very clear. For OP_CAT or other opcodes, our team’s view has always been very simple, we believe that the most important feature of Bitcoin is stability. We believe that the best way for the Bitcoin ecosystem is to do something without a hard fork or a soft fork, so that’s why we proposed RGB ++ and used CKB as a smart contract platform to do such things.
I believe that Bitcoin’s ecosystem is still the future of the entire industry, even though it has fallen so much. I think Bitcoin is a very free and innovative space and platform. I think the Layer2 in the East, especially ABCDE, has invested a lot of projects, and there are projects with EVM and UTXO. I think we can do many different things, and we don’t necessarily have to cater to Western capital overseas. We often liken CKB to Bitcoin Maximize in the East, and we have many different ideas from those in the West. And I think we’re a bit like Eastern heretics, there are some differences in ideas. And I think that if we, the people in the East, or even those recognized by overseas people, unite, we can do a lot of things. And we see a lot of strange things happening on the EVM track, some of our projects are already far ahead, but overseas are not buying it, and everyone is promoting their own projects, which has already indicated a lot of things.
I think now is the best opportunity for us to be more confident in the Bitcoin ecosystem, and not to distinguish between Chinese and overseas, I think those prejudices should be put aside, and this is the best chance for us to do the public chain.
Tags
BRC-20
Manta
NFT
USDT
Ethereum
Wu says blockchain real
Bitcoin
Source link: https://mp.weixin.qq.com/s/yCcQx-lI8zYqdEUvuHofoA
Note: All articles only represent the author’s view and do not constitute investment advice. Original link: https://www.bitpush.news/articles/6677985
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