Behind BRC20: Revenge from the BSV community

Today, BRC 20 is very popular, and the word BSV has returned to everyone's attention.

In mid-February of this year, we produced a special video about Ordinals and BTC NFT.

While searching for relevant information, we discovered an interesting phenomenon: the people who are most enthusiastic about Ordinals are actually a group of people from the original BSV community, although due to the decline of the entire BSV ecosystem, there are only a few of them now.

In the eyes of many BSV enthusiasts, both BTC NFT and Ordinals are things that the BSV community has been advocating to do before, and they thanked Casey (the creator of Ordinals) for becoming a Trojan horse on Twitter.

The author watched the BSV Skull and Bones community for a while a few years ago, and indeed found that the two have similarities.

BSV was born out of BCH, and both follow the large block route, but BSV is more radical, open to expansion, and advocates that there is no upper limit on block size, which is determined by the market. In the future, it hopes to put more business data on the chain.

Based on the Bitcoin SV blockchain system, they proposed the concept of Metanet, which is a value network based on BSV, on which data can be transmitted and stored. It is decentralized and cannot be tampered with, allowing enterprises to build applications on BSV.

Based on BSV, some Skull and Bones Society members developed on-chain Weibo and NFT-related applications.

In general, BSV and BTC have completely different routes. BTC is benchmarked against digital gold, and its core is value storage; BSV hopes that everything can be put on the chain, and the single transaction fee must be low enough for users to not feel it, so it needs to continue to expand its capacity and accumulate small amounts through massive transactions to maintain the smooth operation of the entire system.

Everyone knows what happened later. No BSV ecological applications were used, and the on-chain data was bleak. In that crazy season for DeFi, NFT, and new public chains, BSV was gradually forgotten.

Today, BRC 20 is very popular, and the word BSV has returned to everyone's attention again. This is because a large number of BRC20 ecological applications come from the original BSV community developers.

The core wallet of BRC20, Unisat, is backed by the Chinese development team of the BSV ecosystem, which has developed the smart contract solution Sensible Contract on BSV.

The team behind the first BRC20 trading platform Ordswap once developed the first decentralized trading platform RelayX on the BSV network, and its founder was once an executive at OKCoin.

Behind the Ordinals Wallet is Twetch, a social application built on BSV. With the rise of the Ordinals protocol, Twetch has also begun to support BTC NFT.

In addition, the founder of the commonly seen Mempool mining pool is also a core member of the BSV community.

The route and direction of BRC20 seem to be exactly what BSV enthusiasts support. They have also used BRC20 to regain their footing and gain wealth.

However, this has also caused dissatisfaction among many Bitcoin supporters, especially Bitcoin maximalists. In their view, the current BRC20 is an attack and harm to the BTC network.

First and foremost, BRC20 causes a lot of congestion in the Bitcoin network, making it difficult to produce blocks. At the same time, when Bitcoin transaction fee income continues to exceed block rewards, it may cause time-bandit attacks. Miners will choose to process transactions with higher transaction fees and ignore transactions with low or no transaction fees, resulting in transactions that cannot be completed after being sent out.

Security practitioner Haotian believes that BRC20 violates the mainstream narrative of decentralization, expansion, and low cost. The Bitcoin network cannot prevent invalid inscriptions from being uploaded to the chain, and the centralized platform has to decide whose inscriptions are valid. In addition, if there is no centralized platform to decide on its transaction scenarios, it is very easy to be double-spended. The first-come-first-served fomo mechanism of inscriptions and the mechanism of miners packaging them according to the mining fee have a logical paradox, which makes Mint unfair.

BTCStudy contributor Ajian believes that one should not continue to buy tokens (BRC20) issued by these "protocols" and that they cannot be called protocols at all.

“Please stop buying tokens issued using the Inscription method until the developers of these tokens provide rules that allow client validation, otherwise you will buy nothing and get no protection. Developers, if you really care about your users, please first imagine such client validation rules and implement such clients.”

However, the above are all interpretations and judgments made by industry practitioners from a technical perspective. For most people, whether it is mainstream BTC/ETH, altcoins, MEME/BRC20, or model coins, as long as they can make money, they don’t care too much about the disputes over block expansion and other routes.

At present, BRC20 is also another kind of MEME coin. The consensus is achieved through price increase. The timing of entry and market sentiment are the most important. There are always people who make a lot of money, and there are always people who are stuck at high positions, thus achieving the important historical task of wealth redistribution within the circle.

There is only one piece of speculative advice for "getting rich or getting rich quick": stay curious and don't be lazy.