Inscription Protocol Explained: Principles of Implementation, Use Cases, and Security Recommendations

Recently, several mainstream trading platforms have successively launched inscription markets, supporting various inscription protocols such as BRC-20 and EVM, attracting widespread attention in the market. However, due to the complexity and innovation of inscription protocols, various security issues have emerged, which not only threaten the safety of user assets but also negatively impact the healthy development of the entire ecosystem.

This article will review the mainstream inscription protocols, helping users understand their uses, implementation methods, and how to protect related assets.

Inscription Overview

Inscription is a way to permanently record specific and meaningful information on the blockchain through its features. Once recorded, this information is difficult to alter and can be simple text, complex code, images, etc. In this way, a standardized digital asset functionality can be achieved.

Inscription Ecological Status

Since the emergence of inscriptions like BRC-20 on the Bitcoin public chain, the inscription ecosystem has developed rapidly. Almost every day, new protocols and projects are emerging, and major public chains are joining the inscription ecosystem, such as the Ethscription protocol on the ETH chain, the ARC-20 protocol on the BTC chain, the BSC-20 protocol on the BSC chain, and the PRC-20 protocol on the Polygon chain.

Detailed Explanation of Mainstream Inscription Protocols

1. BRC-20

BRC-20 is based on Bitcoin's UTXO model and the Ordinals protocol. The UTXO model records transaction events rather than final states, and user balances need to be derived by summing all UTXOs. Ordinals assigns a unique number to each satoshi, supporting the writing of various types of data.

BRC-20 writes unified JSON format text data into the blockchain through Ordinals, serving as a token ledger. It mainly includes three operations: deploy(, mint), and transfer(.

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) 2. ARC-20

ARC-20 is also based on the Bitcoin public chain, but it does not specify the token quantity in the data; instead, it represents the token quantity using the number of satoshis in the UTXO, where 1 satoshi = 1 token (.

Fill in the token name, total supply, and other information during deployment; during minting, only the token name needs to be filled in, and the UTXO's satoshi amount will be the minting quantity; during transfer, directly transfer the UTXO holding the token to others.

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( 3. Ethscription

Ethscription uses the calldata data block of Ethereum transactions to add standard data during regular ETH transfers.

When creating an Ethscription, convert the content ) like the image ( into a Base64 encoded URI, then convert it into a hexadecimal string to fill in the calldata. During the transfer, the sender initiates a regular transfer to the receiving address and fills in the transaction hash that created the Ethscription in the calldata.

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( 4. EVM chain inscription

The inscription engraving methods of EVM chains such as BSC, Ethereum, and Polygon are similar, all using calldata to store fixed-format data.

Taking BSC Chain as an example, the inscription format is: data:,{"p":"","op":"","tick":"","amt":""}. Among them, p represents the protocol name, op represents the operation, tick represents the token name, and amt represents the amount.

When transferring, send a regular transfer to the recipient address and fill in the transaction hash of the created token in calldata.

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Security Recommendations

1. Fully understand the implementation principles of the inscription protocol you are participating in to avoid operational errors that may lead to asset losses.

2. Handle inscription transactions under the UTXO model with caution to prevent mistakenly transferring or "burning" the inscription.

3. Use trusted wallets and trading platforms to ensure the security of inscription operations.

4. Regularly back up your private keys and mnemonic phrases, and protect your inscription assets.

5. Pay attention to official announcements and community updates to stay informed about protocol updates and security reminders.

Inscription technology is still rapidly developing, and users should remain vigilant and reasonably assess risks when participating. At the same time, the industry also needs to continuously improve the inscription ecosystem to enhance user experience and asset safety.

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