The Evolution of Bitcoin Technology: Innovations and Challenges from OP_RETURN to Ordinals

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A Review and Outlook on the Development of New Bitcoin Technologies

Since its inception, Bitcoin has been continuously exploring and developing new technologies to meet the demands of large-scale applications. This article reviews the main course of Bitcoin's technological development, analyzes the current important new technologies, and looks forward to the future development direction.

On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development

1. Main Exploration and Conflicts of Bitcoin's Original Technology

1.1 Bitcoin Script Language and Instruction Reduction

Bitcoin uses a non-Turing complete scripting language, which has certain limitations. To improve security, Bitcoin has historically trimmed down instructions, including string operations, bit operations, and arithmetic operations. Although this trimming has enhanced security, it has also restricted the functionality of Bitcoin.

1.2 Bitcoin Fork History

During the development of Bitcoin, there have been multiple forks, mainly revolving around the block size controversy. From the initial 1MB limit to BCH's 8MB and 32MB, and then to BSV's 128MB, it reflects the community's differing views on the expansion issue. Forks are a form of technical exploration, but they also caused community fragmentation.

1.3 Early Technology Exploration

Some important technological explorations occurred in the early days of Bitcoin:

  • Colored Coins: Representing a broader range of assets by "coloring" Bitcoin
  • MasterCoin: Establish a complete node layer, providing more complex functionalities.
  • CounterParty: Use OP_RETURN to store data, enabling asset issuance and trading.

These explorations laid the foundation for subsequent technological development.

1.4 Limitations of Bitcoin and Layered Design

Bitcoin has some limitations, such as the UTXO model, non-Turing complete language, scalability issues, etc. However, from a layered design perspective, these characteristics make Bitcoin more suitable as a foundational infrastructure. Future development will rely more on upper-layer solutions.

On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development

2. Important New Technologies in Bitcoin Development

2.1 OP_RETURN and Segregated Witness

OP_RETURN allows for the storage of a small amount of data in transactions. Segregated Witness ( Segwit ) has effectively achieved block expansion, laying the foundation for subsequent technological developments.

On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development

2.2 Schnorr signatures, MAST, Taproot Scripts

  • Schnorr Signature: Enhancing transaction efficiency and privacy
  • MAST: Optimizing script storage and verification
  • Taproot Scripts: Expand Bitcoin scripting capabilities

These technologies greatly enhance the functionality of Bitcoin.

On the eve of another outbreak, a ten-thousand-word summary of Bitcoin's new technology development

2.3 Ordinals, Inscriptions and other new protocols

  • Ordinals: Numbering each satoshi, achieving non-fungibility.
  • Inscriptions: Engraving data on Bitcoin, creating Bitcoin NFTs
  • BRC-20: The fungible token standard on Bitcoin
  • Atomicals, Runes, etc.: Explore new ways of token issuance and tracking.

These protocols greatly enriched the Bitcoin ecosystem.

On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development

On the eve of another outbreak, a comprehensive summary of Bitcoin's new technological developments

3. The Use of New Technologies and Future Development

3.1 How to Use New Technology

Current applications mainly focus on simple scenarios after blockchain expansion, such as NFT and token issuance. In the future, with the expansion of capabilities, more complex applications will emerge.

On the eve of another outbreak, a summary of Bitcoin's new technology developments

3.2 Future development needs

Short-term: Improve financial applications Mid-term: Achieve trust applications Long-term: Build a complete Web3 ecosystem

Bitcoin technology will continue to develop towards expansion and functional enhancement to support a wider range of application scenarios. The key in the future lies in balancing security, decentralization, and scalability to build a true value internet.

On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development

BTC-1.7%
OP-3.02%
ORDI-5.47%
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MevHuntervip
· 08-11 11:24
Bitcoin forks are all just hype, get to work.
View OriginalReply0
DaoGovernanceOfficervip
· 08-11 11:24
*sigh* empirically speaking, this is just another attempt at decentralization theater...
Reply0
ForkThisDAOvip
· 08-11 11:21
bch will always be a senior
View OriginalReply0
TokenSherpavip
· 08-11 11:20
actually, this pattern of protocol evolution matches my empirical data models... fascinating trajectory tbh
Reply0
¯\_(ツ)_/¯vip
· 08-11 11:14
Block disputes have been a常谈.
View OriginalReply0
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