A brand new Bitcoin nonfungible token (NFT) market goals to scale back community charges related to the arrival of Bitcoin Ordinals inscriptions by tapping into the Web Pc Protocol (ICP).
Developed off the again of the creation of Bitcoin Ordinals in early 2023, Bioniq operates on the ICP and faucets into its native Bitcoin integration to energy the commerce of Bitcoin-based Ordinals inscriptions.
Chatting with Cointelegraph on the eve of the platform’s launch, Bioniq CEO and co-founder Bob Bodily stated the challenge has been in growth since February 2023. The group has constructed a market that includes Ordinals sensible contracts auctions on the ICP, an entire cross-chain pockets between Bitcoin and the ICP, in addition to an inscription instrument.
“It had solely been two weeks after Casey Rodarmor launched Ord 0.4.0, and I knew Ordinals had been going to be completely large.”
The Bioniq group highlighted the expansion available in the market capitalization of BRC-20 tokens since their inception in Jan. 2023. The market cap now exceeds $3 billion, with over 42.6 million Ordinals minted so far. This has instantly affected Bitcoin community congestion, resulting in a spike in Bitcoin (BTC) transaction charges final seen since 2021.
Bioniq’s platform incorporates a sensible pockets for customers to handle non-public keys utilizing Web3Auth. This enables customers to log into the platform utilizing typical Web2 Google accounts whereas sustaining noncustodial management of their wallets and property.
The platform additionally makes use of partially signed Bitcoin transactions (PSBTs) via the ICP’s Bitcoin community integration. This unlocks sensible contract capabilities for Bitcoin, eradicating the necessity for customers to make use of centralized cross-chain bridges.
ICP is a “incredible Bitcoin sidechain”
Constructing on ICP additionally permits Bioniq to assert transaction finality instances under two seconds, in addition to zero fuel or community charges. Its structure supplies optimized storage prices, averaging round $5 per gigabyte of information saved yearly.
Bodily added that Toniq, the studio behind Bioniq, has been creating on the ICP since Might 2021 and has intensive expertise constructing sensible contract wallets, marketplaces, NFT launchpads and collateralized NFT lending protocols:
“ICP is a incredible Bitcoin sidechain proper now as a result of it has fantastic Bitcoin primitives on the protocol layer.”
Bodily explains that ICP operates a Bitcoin mild node operating totally on-chain, which facilitates studying the Bitcoin blockchain by way of native sensible contract calls. The ICP additionally has a threshold digital signature algorithm, recognized as an Elliptic Curve Digital Signature Algorithm. The implementation permits ICP sensible contracts to signal layer-1 Bitcoin transactions and broadcast them to the mempool.
“These protocol primitives additionally enabled us to construct an Ordinals wrapper totally on the software layer; we didn’t have to the touch the consensus layer of the protocol in any respect. So it is rather quick to construct Bitcoin tech on ICP proper now,” Bodily added.
Bitcoin customers and belief assumptions
Cointelegraph additionally inquired whether or not Bioniq’s wrapping course of could possibly be a possible barrier to entry for customers. Bodily admits that whereas the method is essentially automated by the Bioniq pockets and solely requires BTC, there are two concerns which can be pertinent for extra discerning customers.
“Wrapping requires a Bitcoin transaction. This implies you need to pay so as to wrap. This can be a vital barrier. A technique we’re addressing the issue is by integrating open Nostr PSBT listings into Bioniq,” Bodily defined.
This integration signifies that PSBT listings saved on Nostr via decentralized Ordinals marketplaces OpenOrdex or Deezy Place will likely be accessible on Bioniq. He added that it removes the necessity to wrap Bitcoin transactions, as customers might checklist instantly on Bioniq utilizing open PSBTs.
Maybe extra importantly, Bodily defined that the wrapping course of requires “belief assumptions” on each protocols:
“Wrapping over to ICP means along with trusting Bitcoin, you at the moment are trusting the Web Pc Protocol. Some Bitcoin customers received’t need the counterparty threat of bridging property to a different chain.”
Bodily provides that Bioniq is specializing in creating consumer expertise forward of inheriting Bitcoin’s safety, which is ensured by the finality of layer-1 transactions. Nevertheless, he envisions a “good decentralization path” for functions like Bioniq.
This might contain the evolution from being constructed on a sidechain with further belief assumptions to “changing into a Bitcoin sovereign rollup on ICP that’s belief minimized.” The ultimate step would see Bioniq changing into a Bitcoin zero-knowledge rollup (ZK-rollup) on the ICP with no further belief assumptions, inheriting the complete safety and decentralization of Bitcoin.
“ICP suits completely into this plan as properly as a result of ICP can present a replicated execution setting (decentralized sequencer) or validium (additional off-Bitcoin storage for rollups).”
Banking on Bitcoin’s worth proposition
Plenty of NFT marketplaces already supply Bitcoin Ordinals auctions and buying and selling, which begs the query of what an solely Ordinals platform will deliver to the ecosystem.
Bodily believes that present choices that featured “softer pivots” to Ordinals on their platforms had been hamstrung by complicated consumer experiences. Creating a “devoted Bitcoin Ordinals market, constructed for Bitcoin customers natively” hinges on creating a local cross-chain, BTC-ICP pockets.
As well as, Bitcoin’s unchallenged place because the preeminent and largest cryptocurrency by market cap stays one other drawcard for the continued curiosity in Bitcoin NFTs into the long run.
“For those who have a look at the numbers, 89% of individuals on the planet have heard about Bitcoin, Bitcoin accounts for round 50% of the whole crypto market cap, and Ordinals have accomplished over $500 million in quantity this 12 months — so there’s large demand.”
Bioniq joins the likes of Ordinals Market as a Bitcoin-only Ordinals market. Gamma is one other Ordinals market that instantly mints to Bitcoin’s layer-1 chain. Ordswap was an early Ordinals market that has since closed down after dropping management of its web site to hackers. In the meantime, multichain platforms like Magic Eden prominently checklist Bitcoin Ordinals NFTs.
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