Original author: Haotian (X: @tmel0211)
Editors note: The Ordinals track has recently revived, and the surge in related BRC 20 tokens has also brought heated discussion and attention to the Bitcoin ecosystem again. Crypto researcher Haotian published an article discussing the multi-asset narrative of Taproot Assets and Ordinals. Odaily organizes it as follows:
Ordinals are assets that are easy to distribute but difficult to grab. Taproot Assets are assets that don’t need to be grabbed but are difficult to distribute. Brc 20 is rarely talked about. why? Because it is clear that Brc 20 essentially belongs to the scope of market speculation and has no technical component at all. If you think I am biased against Brc 20, I think it is because you lack respect for Bitcoin UTXO technology.
I understand the shilling behavior that exists in the market, but it does not necessarily have to be based on the premise of confusing the public.
What do you think of the multi-asset narrative of Taproot Assets and Ordinals? To put it simply: Ordinals assets are easy to distribute, but difficult to snatch. Taproot Assets assets do not need to be snatched, but are difficult to distribute.
Ordinals BRC 20
Ordinals is a third-party data index. Token depoly, mint, transfer and other behaviors are all implemented by users publishing specific data fields to the chain. Ordinals can only make legality explanations based on the retrieved decentralized data.
Benefits are:
1) It naturally has fair emission characteristics, and users can participate in asset circulation by directly sending specific parameters of transaction notes to the chain;
2) Easy Fomo speculation, some people with poor information and poor cognition can make a lot of money by taking advantage of market sentiment;
3) In line with the interests of miners, the overall mining fee will be raised under Fomo mood.
The disadvantages are:
1) Fair launch is just a stealth concept. For assets with real growth, it is difficult for you to participate in early mint or low-price fundraising;
2) With Fomo, most novice retail investors may lose a lot of funds but mint less;
3) It is easy to manipulate the market. The dealer can depoly a token at any time and then gain traffic and fans by pulling the market.
If you have to talk about technical logic, you will find a lot of bugs. For example: when depositing and withdrawing Brc 20 assets from the exchange, it is easy to make reconciliation errors between the Ordinals index ledger and the exchange platform ledger, which can easily lead to false recharge attacks; another example: Technically, it is possible to monitor Mempool data in real time to block Brc 20s Deploy behavior and interfere with the fairness of token issuance; or there may be accounting logic errors between the Ordinals index and some proxy service platforms, causing the asset circulation order to be broken.
All in all, due to the delay effect of block confirmation on the chain, Ordinals-related tokens cannot have a clear status cut like Ethereum smart contract tokens, and assets can only be managed through multiple platform accounting and reconciliation. , once the asset circulation environment becomes complicated, various problems will follow.
I have no bias against Brc 20, but it is just that it does not belong to the category of technical logic. It is correct to understand it only based on the category of market speculation. Using the advantages of so-called technology to shill something based on pure market logic, you can see the chive green above your head from thousands of meters away.
Taproot Assets
Taproot Assets is based on Bitcoin multi-signature and hash time locks for asset issuance, and uses the trust channel of the Lightning Network to distribute and circulate assets in large quantities. The entire process is provided by the Bitcoin main network for asset settlement, and the Lightning Network has been developed for many years. Trusted off-chain links also have strong consensus support, which is equivalent to the layer 2 Bitcoin expansion solution.
Although the technology is more Make sense, and tokens are distributed based on Lightning Network wallets and relay nodes, it can form consumption and bring long-term application value to Bitcoin. However, the currency issuance model of Taproot Assets is similar to ICO. Coin issuance is easy to operate and difficult to distribute. It requires the project side to have strong technical, operational, market and other comprehensive strengths.
1) Only by establishing an initialization channel in advance can assets be circulated;
2) The channel capacity is limited, and the capacity of each channel is limited. To expand the scale, the channel scale must be increased;
3) The distribution efficiency is limited, and there are throughput limitations in asset transfer within the channel, etc. Moreover, users are not accustomed to using the Lightning Network for asset interaction.
This determines that it is difficult for Taproot Assets to have a short-term Fomo effect.
Many people don’t know that more than 40,000 assets have been released on Taproot Assets, including tokens and NFTs. However, this type of token does not have a first-mover advantage when it is issued. Anyone can issue Sats, but the choice of whose narrative to believe and whose car to choose is the ability to continue operating growth. This is obviously more like a new Bitcoin ICO era that is about to take off. The question is what kind of story should we tell?
Fortunately, the narrative of Taproot Assets has just begun, and it has not yet been led off the rhythm. It is still optimistic about its mainstream circulation as a stable currency, activating a new wave of Bitcoin application narratives. It can benchmark Ethereums full-level agent distribution mechanism from currency issuance to DEX and CEX token distribution and circulation. Let’s take a look at the development of Taproot Assets.
In general, for short-term speculation, it may be better to go to BRC 20, but you have to be wary of people who tell you about long-term value on the speculation road. For long-term value discovery, be sure not to miss Taproot Assets, but don’t expect too much in the short term, otherwise you will Exploited by speculators.
Smart readers can understand this logic, go their own way, and stop dissing each other and confusing each other.
Let them see it clearly before making a choice.
