Bitroot is a bitcoin ecosystem project that belongs to the bitcoin smart contract track, but unlike other competitors, Bitroot is a total solution。
Bitroot consists of three key technologies, the first is the Bitroot Protocol, which is an asset issuance protocol that can be used to issue BRT20 standard tokens and NFTs on Bitcoin.Unlike other inscriptions and runes, the Bitroot Protocol does not suffer from the undesirable effects of UTXO proliferation, and it is also an interactive logic that better suits the Web3 user's needs, and is more convenient for Bitcoin users. interaction logic and more convenient Bitcoin asset management protocol.
Then there is BRVM, simply put, it simulates an EVM out of the Bitcoin scripting language. Originally, this technology was theoretically established and practically difficult to land, but this year, Bitcoin's BIP420 advances an OP_CAT opcode, which brings an opportunity for the implementation of BRVM.
BRVM solves the problem of Bitcoin running smart contracts, but because Bitcoin's performance is known to be low, BRVM is not only a function of translating smart contracts, but also a middleware with Layer2. For applications that require high performance, they can be placed on Layer for execution, and then the results of the execution can be handed over to Bitcoin for confirmation via the BRVM, thus enabling a true two-way confirmed Bitcoin Layer2, which is the third core product, Bitroot Layer2.
After seeing what Bitroot is doing, let's look at how big the market is for the Bitcoin track. I'm going to quote an authoritative bigwig here:
‘John Riggins, Partner at BTC Inc and Founder of Bitcoin Magazine, said in his keynote speech at Bitcoin Season 2 that the Bitcoin ecosystem and Bitcoin-native assets will be more than $500bn in size over the next 5 years. He said that the ERC-20 market size is basically equal to the ETH market cap, while the BRC-20 market size still has a huge gap compared to the BTC market cap, or there is room for 100x growth.’
In fact, when we look back at Bitcoin's native assets, the current market capitalisation of the leading ORDI is only $800 million, and the other long-tailed assets and ORDI combined are expected to be less than $1.5 billion. In contrast, the various projects built around Ether are casually estimated to be over $10 billion in size. So the Bitcoin Native Asset track is still quite early in the game, and there is still a lot of potential to be tapped.
The mainstream Bitcoin Layer2 narrative in the market is more about projecting Bitcoin to Layer2 for circulation through price mapping, but the real Bitcoin is still lying on the Bitcoin chain.
Bitroot's narrative is different from other Bitcoin Layer2s. Bitroot is from a technical perspective, introducing smart contracts to the Bitcoin ecosystem to bring real DeFi to Bitcoin. Imagine running a lending protocol on the Bitcoin chain that brings more than 8 per cent of the native Bitcoin's revenue, then the institutions will inevitably swarm to the Bitcoin that's laying in their accounts. is only called liquid if it moves.
The core difference between Bitroot and other Bitcoin Layers2 is the issuance of native Bitcoin assets, note, ‘native’. This is very important, so I'm going to talk about the necessity of Bitroot for the Bitcoin ecosystem from another dimension.
As you're no doubt aware, Bitcoin has been halved this year, and as a result, the cost of mining Bitcoin for miners has increased dramatically to $55,000, up from $14,300 in August of last year.
With miners earning less in block rewards, then it is inevitable that they will have to find compensation elsewhere, and bitcoin transaction fees are the next target. During Inscription's hottest month last November, Inscription gave the Bitcoin network about 1,263.54 BTC in transaction fees, while Runes contributed 881 BTC in fees on its first day online a while back.
So the biggest difference between the Bitroot native Bitcoin asset and the other Bitcoin Layer2‘s non-native assets is that the other Bitcoin Layer2’s don't provide transaction fees to miners!
Transaction fees are the backbone of the Bitcoin network's future revenues, and miners will push for the issuance of native bitcoin assets because it is in their interest to do so.The Bitroot project not only introduces smart contract functionality to Bitcoin on a technical level, but more importantly, it responds to the actual needs of the miner ecosystem. Bitroot is a good fit for the bitcoin miner ecosystem, and will receive more attention and support from institutional investors, as those who go with the flow will be highly sought after, while those who go against the grain will be left out.
It is said that Bitroot Layer 2 will soon be available on the public test network, so you can get a hand on it in advance and participate in the test network activities. I'm sure there will be airdrop rewards in the future.
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