Background
Reasons for the Need for ordx
Enhancing the Ordinals protocol to enable the issuance of fungible tokens (FTs) in addition to non-fungible tokens (NFTs).
Implementing the fundamental concept of the Ordinals protocol, where a satoshi (sat) is the basic unit of BTC and is tied to an asset, whether it's an NFT or FT, ensuring immutability.
Promoting the application of the Ordinals protocol by solidifying its core content, avoiding complications caused by protocol upgrades. This benefits existing assets based on the Ordinals protocol (such as BRC-20) and attracts more projects developed on the Ordinals protocol.
Addressing issues with the BRC-20 protocol, which requires inscribing before transferring tokens and necessitates additional ledger to track the transfer history of BRC-20 assets.
Providing an upgrade option for BRC-20 assets to migrate directly to the ordx protocol and become ordx assets.
Mitigating the risk of token burn.
Preparing for trading Ordinals assets on the Lightning Network (OLDEX protocol).
Ordinals Protocol
The core content of the Ordinals protocol can be summarized in two aspects:
Ordinals Theory: The theory of numbering and tracking each sat on the BTC network.
Inscribe Technology: The technology of inscribing data on sats, including the numbering of inscriptions, definition of content format, and rules for writing on the BTC mainnet.
The Ordinals protocol ensures the uniqueness and immutability of sat numbers and defines the format and content of inscriptions. Based on this foundation, various protocols can be developed, such as the BRC-X protocol. Clearly, the Ordinals protocol can be seen as the IP/TCP protocol, and other protocols are specialized protocols built on top of IP/TCP. The prosperity of various protocols signifies the thriving BTC ecosystem (similar to the various protocols built on top of IP/TCP, establishing the internet). If we consider the Ordinals protocol as such a foundational protocol, ensuring the stability of the Ordinals protocol becomes the primary requirement. Any modifications to the core content of the Ordinals protocol will disrupt the protocols and assets built on top of it, ultimately hindering the development of the BTC ecosystem (bug fixes and technical optimizations are not problematic).
However, it appears that the creator of the Ordinals protocol, Casey, is currently primarily interested in the Runes protocol. Mixing the Ordinals and Runes protocols may introduce uncertainty to the core content of the Ordinals protocol. For example, there might be modifications and adjustments to the core content of the Ordinals protocol to better serve the needs of the Runes protocol. This is akin to modifying the IP/TCP protocol specifically to support and optimize the HTTP protocol, which could have adverse effects on other protocols dependent on IP/TCP. The best approach is to separate the Ordinals protocol and solidify its core content. Bug fixes and performance optimizations can still be made, and additional features can be added based on community demand. However, the core content of the Ordinals protocol should not be modified solely to support a specific protocol. Our hope is that the Ordinals protocol will eventually become the most fundamental protocol supporting the BTC ecosystem, akin to the great IP/TCP protocol, and that the BTC ecosystem will grow into a value internet surpassing the internet itself.
A salute to Casey, the creator of the protocol.
BRC-20 Protocol
The BRC-20 protocol is based on the Ordinals protocol and uses the Deploy-Mint-Transfer methods to issue FTs. The basic principle involves establishing a ledger within the data inscribed on sats. This approach introduces two issues: firstly, when transferring tokens, a new inscription must be made to indicate the transfer of tokens and the quantity, resulting in complexity and higher fees for transfers. Secondly, it requires off-chain services to provide indexing, which can easily lead to centralization, contradicting the fundamental principles of BTC. However, as a meaningful attempt, BRC-20 has demonstrated the feasibility of issuing FTs on BTC and greatly expanded the imaginative space for the Ordinals protocol. The total value of assets in BRC-20 now signifies the value of the BRC-20 protocol, and the contributions of its creators to the BTC ecosystem are significant.
A salute to Domo, the creator of the protocol.
Atomicals Protocol
The Atomicals protocol is a highly promising protocol, with notable technological advancements, conceptual innovations, and the visionary scope of its creators. The Atomicals protocol and the Ordinals protocol have many similarities, but they differ significantly in terms of concepts and implementation. It can be said that the Atomicals protocol and the Ordinals protocol exist at the same level and compete with each other. This healthy competition and mutual inspiration will ultimately promote the development of technology. Let us witness the confrontation and mutual stimulation between the Ordinals protocol and the Atomicals protocol, and move forward together.
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