Background

Brief

Brief Introduction to Ordinals Technology:

Ordinals is a protocol based on the Bitcoin network that assigns a sequential number to the smallest unit of Bitcoin called "sat" (short for satoshi), giving each sat a unique identity. Using the Ordinals protocol, users can embed text, images, audio, video, and other content on Bitcoin's sat unit, creating unique digital assets known as Ordinal Inscriptions or BTC NFTs. This protocol brings innovation to the Bitcoin ecosystem and holds significant potential for development.

BRC20 Ecosystem and its Limitations:

BRC-20 is a token standard based on the Bitcoin blockchain, inspired by Ethereum's ERC-20 standard. BRC-20 tokens allow developers to create and transfer fungible tokens using the Ordinals protocol. The main difference from ERC-20 is that BRC-20 operates on the Bitcoin blockchain. The total market value of BRC-20 tokens exceeds $120 million and has experienced significant growth recently.

Limitations:

Functionality limitations:

Compared to Ethereum's ERC-20 standard, BRC-20 is relatively simplified in terms of functionality. Due to the lack of on-chain execution capabilities like Ethereum, the state updates and transfers of BRC-20 tokens are achieved off-chain, using JSON-formatted inscriptions. This may limit the functionality and interactivity of BRC-20 tokens.

Smaller development ecosystem:

As BRC-20 is a relatively new and experimental standard, its development ecosystem is still relatively small compared to Ethereum. Currently, there is less availability of development tools, documentation, and community support for BRC-20, which may pose some limitations for developers in terms of usage and exploration.

Scalability challenges:

The Bitcoin network itself faces scalability challenges, including limitations in processing speed and throughput. The deployment and transactions of BRC-20 tokens are also subject to the limitations of the Bitcoin network, which can result in transaction delays and high fees.

Importance and Demand for Cross-Chain Technology:

Due to the limitations of the BRC-20 ecosystem, on-chain congestion, high fees, and simplified functionality, there is a need for cross-chain bridge technology. OridiChains, as a peer-to-peer cross-chain bridge, emerges to address these challenges. OrdiChains brings BRC20 inscriptions into the Ethereum and other public chain ecosystems, adding DeFi attributes such as DEX, lending, farming, on-chain contracts, and algorithmic stablecoins to BRC20. This helps solve issues related to transaction delays and high fees on the Bitcoin chain and enhances the financial attributes of the BRC20 ecosystem.

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