Bitcoin Market Cap can travel through a golden path with these 3 projects
Amidst the turmoil the crypto industry has been involved in over the last month, the global market capitalization has fallen from the psychological level of $1 trillion; Bitcoin has followed the trend. The largest cryptocurrency by market cap fell from $445 billion to $420 billion.
Over time, the usefulness of BTC has been limited as a store of value and transfer of value. However, the rise of BTC Decentralized Finance (DeFi) protocols is trying to further convert the utility of this network, expanding its use cases with the arrival of the Ordinals protocol.
Bitcoin Ordinals or Bitcoin-based NFTs can be critical to sustaining and developing the economy of the largest cryptocurrency in the ecosystem. Although, in an important step towards enabling Bitcoin’s economy, some projects are focusing on expanding and increasing BTC’s market value.
What are ordinals and how can they change the BTC economy
According to crypto research firm Delphi Digital, over 365,000 Bitcoin ordinals have been minted “in a minting frenzy,” bringing BTC network activity to new levels.
To many, Bitcoin ordinals may be considered NFTs, but the two are different. NFTs are created and tracked through smart contracts, often hosted using decentralized storage systems, such as a modular suite of protocols for organizing and transferring data – the Interplanetary File System (IPFS).
On the other hand, ordinals are written into Satoshi’s chain storage, validated in blocks, and stored in the network’s distributed ledger.
However, according to Delphi Digital, ordinal theory assigns a unique number to each satoshi, BTC’s smallest denomination, 1 BTC equals 100,000,000 satoshis. It allows for the inscription of metadata on each sat, functionally turning them into NFTs, increasing the interest of “big players” after Yuga Labs’ latest twelvefold auction.
Projects that will unfold the BTC potential
Roll kit will introduce a module for Bitcoin where “Sovereign Rollups” can manage their execution. At the same time, these assemblies will be able to deposit consensus and data availability to BTC.
Rollkit is a modular framework for rollups created by the Celestia team, the first modular blockchain network for secure web3 applications, that allows developers to plug in custom execution and data availability layers.
In addition, Stacksa BTC smart contract layer whose goal is to “unlock the Bitcoin economy”, has a consensus mechanism called Proof of Transfer (PoX), an extension of the Proof of Bur mechanism.
Users of this layer can pay fees to miners in STX, the stack-native token of the Blockstack decentralized computing platform, to send transactions or deploy smart contracts on stacks.
According to Delphi Digital, the project aims to “bridge” BTC via sBTC, a version of BTC that lives on the stack and is linked 1:1 to the BTC used to mint it. sBTC is intended to be as close to native BTC as possible to improve on-chain functionality. Delphi Digital concluded:
Ordinals, Stacks and Rollkit are potentially the beginning of a living Bitcoin ecosystem on the chain. These projects represent a new way forward for Bitcoin: One that is more than just digital gold.
To Ben Lilly, co-founder of Jarvis Labs and an economist, BTC ordinals represent a shift in the network’s demand curve, allowing users to be more productive using the network. For Lilly, this is what a healthy and growing economy “looks like”, he claimed:
The Bitcoin economy has a bullish trend
Feature image from Unsplash, chart from TradingView.com.
