Ethscriptions was launched on HotsCoin on January 11. This report conducts an in-depth study of the Ethereum Inscriptions protocol (Ethscriptions) and its token $eths, tracking its development process, market performance and technical characteristics. While $eths price volatility has attracted widespread attention, its technical limitations and open issues remain key factors to consider. This report provides a comprehensive analysis of the protocol’s expansion implementation principles, development stages, and limitations. Currently, ETHS is open for trading on HotsCoin.
1. Market performance:
The Ethereum Inscription protocol launched on June 17 with a minting cost of just 0.5 U of $eths, but the OTC price quickly rose to 100 U within days of minting, and to 500 U in early August. However, as $ordi price dropped, $eths price fell back to around 300 U. On October 8, $eths exploded again, with the price climbing to 800 U, attracting widespread attention.
2. Community promotion:
Community members and KOLs actively promoted, commented and forwarded $eths-related tweets in the official Telegram group, effectively increasing the visibility of the project. However, these promotions should not be the only reason for investment decisions.
3. Ethereum inscription concept:
Ethscriptions are similar to the Ordinals protocol on Bitcoin, allowing for engraving files no larger than 96 KB in size on the Ethereum mainnet. The core concept was proposed by Genius.com co-founder Tom Lehman and launched on June 17, 2023.
4. Development process:
On June 17, Ethscriptions was founded and launched its first project, Ethereumpunks.
On July 17, the marketplace Ethscriptions.com was hacked, resulting in the theft of a large number of inscriptions.
On July 25, Ethscriptions Marketplace V2 was launched, with a total transaction volume of 655 ETH.
On August 8, the ESC VM testnet was launched, introducing virtual machines and dumb contract systems.
On September 8, it was officially announced that $eths will be used as the official token and plans to launch a dumb contract DEX based on UniswapV2.
On September 27, the DEX DumbSwap based on dumb contracts was launched on the test network.
On the evening of October 8, the price of $eths skyrocketed to 800 U.
5. Principle of expansion implementation:
The Ethscriptions expansion plan consists of ESIP-5 and ESIP-6 proposals. ESIP-5 allows inscriptions to be transferred in batches in one transaction, reducing gas costs. ESIP-6 introduces the concept of non-uniqueness to make inscriptions more flexible.
6. ESC VM and dumb contract system:
ESC VM is analogous to the Ethereum Virtual Machine (EVM) and provides a running environment for dumb contracts. Dumb contracts bypass the execution and storage costs of EVM and reduce transaction fees through inscription storage.
7. Limitations:
The functions of dumb contracts cannot be called directly and need to go through the bridging process.
The openness and versatility are limited, dumb contracts cannot be created arbitrarily, and the functions are relatively limited.
It cannot solve some complex needs and its applicability is relatively low.
8. Summary:
While Ethscriptions stands out in terms of price and community promotion, its technical limitations limit its impact in the developer community. Compared with L2 solutions, Ethscriptions have certain gaps in programmability and openness. However, as a project in its early stages of development, Ethscriptions still has potential, especially in terms of increasing NFT minting costs and promoting democratization. Investors should carefully evaluate its long-term potential and technical limitations to make informed decisions.
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