Biweekly Report [ 1H June 2023 ]

Stackswap
3 min readJun 27, 2023

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(Disclaimer: The contents are subject to change without prior notice, and under no circumstances can it be used as evidence of legal responsibility for investment results. The information provided here does not constitute investment advice. If you have any questions, please contact the Stackswap team.)

Hello, StackSwap Community.

Progress Report

> Stackswap Dashboard (at block number 110,850 )

> Stacks Accelerator Verified Tokens: 10

  • Stackswap (STSW)
  • Stacks (STX)
  • Arkadiko Token (DIKO)
  • Arkadiko Stablecoin (USDA)
  • Miamicoin (MIA) v1
  • Miamicoin (MIA) v1
  • Newyorkcity Coin (NYC) v2
  • Newyorkcity Coin (NYC) v2
  • Lucid Bitcoin (lBTC)
  • HireVibes (VIBES)

Stackswap Ecosystem

As a team, we have been keeping our eye on Bitcoin’s SegWit and Taproot network upgrades for a long time, and newer trends like Ordinals and BRC-20 have certainly caught our eye.

However, since it has been more than 6 months since the Ordinals Protocol was originally released, there are various verification procedures (security, level of decentralization, network challenges, etc.) that are under way. With keeping to our ethos of decentralization and permissionlessness, we are still evaluating what are next steps in that direction are.

What are Bitcoin Ordinals?

  • Ordinal Theory is a proposed methodology to identify each Satoshi through its serial number and track it from the first Bitocin issuance to the end of the transaction.
  • It is a system that numbers specific satoshis and gives each satoshi a serial number to then track throughout a transaction.
  • The Ordinals Protocol can distinguish an individual Satoshi as unique by attaching additional data through a method called “Inscription”.
  • Satoshis are numbered according to the order in which they were mined and sent through the network. The numbering depends on the order in which satoshis are mined, while the transfer depends on the order of transaction inputs and outputs.
  • Existing NFTs are created as smart contract on a mainnet (Ethereum, Solana, BNB, etc.) and the assets can be hosted elsewhere. As a result, you can take advantage of Bitcoin’s strength in immutability and security.
  • This process is possible thanks to the Taproot upgrade released on Novebmer 14th, 2021.

What is Taproot and How does it benefit Bitcoin?

  • Taproot is considered the most significant Bitcoin update since the 2017 SegWit upgrade.
  • It is a soft fork that improved the script of Bitocin to improve privacy, efficiency, and the network’s ability to process smart contracts.
  • The Taproot Update consists of three Bitcoin Improvement Proposals (BIPs) covering Taproot, Tapscript, and Schnorr signatures.
  • Through the Taproot update, Bitcoin can achieve:
  1. network expansion
  2. improved TPS
  3. transaction fee reductions
  • In addition it can potentially deploy smart contracts within Bitcoin to cover the trends in the NFT and Defi markets.

BRC-20

BRC-20 is a token standard that enables the issuance and transmission of FTs in the Bitcoin network by using Ordinals to record a specific form of text in Satoshis, the smallest unit of Bitcoin.

ORC-20

An upgraded version of the BRC-20 that uses the Ordinals protocol and improves upon the shortcomings of the BTC-20 standard (enhanced scalability and security). It is compatible with BRC-20, and the main goal is to the solve the double-spending issue by utilizing the UTXO model.

SRC-20

If the ORC-20 is in upgraded version of the BRC-20 that improves the shortcomings, the SRC-20, which records text using Bitcoin Stamps, is a completely different system. In the case of Ordinals, random data is recorded in the witness data of a Bitcoin transaction. In the case of Stamps, since the information is stored in spendable outputs (i.e. UTXO), all full nodes have no choice but to store it, which is much more robust that ordinals and closer to the usage of a blockchain.

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