Author: Kevin / Founder of UXUY
On December 28, last year_, we released the world’s first standardized indexer—_ the UXUY Indexer, officially serving the Inscription Track. As a multi-chain DEX, why would we build an indexer? How do we view the emerging asset inscriptions? What predictions do we have for the future? In this article, I want to write down my thinking process and share it with everyone.
Inscriptions were formed on Bitcoin, born in Ordinals, and spread to the multi-chain ecosystem, and its growth has been wild. At this moment, we have to call on inscriptions to embrace Bitcoin and the spirit of Satoshi. This sentence is a bit abstract, and a more accurate description should be that inscriptions should follow the DMT Standard.
So, what is the DMT Standard and why is it so important?
DMT is an abbreviation for Deploy, Mint, and Transfer. I believe that all participants should have access to these three actions on the chain without relying on a centralized third party.
As Mr. Satoshi mentioned in the Bitcoin white paper:
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution
Next, I will introduce to you the importance of inscriptions following DMT Standards, as well as the problems encountered by the current inscription track.
The first BRC20 inscription was born on March 8, 2023. BRC20 creator Domo used the Ordinals protocol to set the Inscription to JSON: by declaring a specific specification to simulate the logic of Token, and thus the first BRC20 inscription $ORDI in the encryption world was created.
When the inscription is just used to store code blocks on the chain, nothing is surprising. At this time, the inscription is just an inscription. But when the standardized inscription is processed and proved off-chain by the Indexer, everything changes!
The inscription transformed into an asset.
Unlike other assets such as Token and NFT, inscription assets naturally have the following characteristics:
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The attribute of the gas fee ensures that each inscription has a corresponding production cost (Gas). It naturally has asset attributes and is easily destroyed.
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Decentralized Fairmint has brought about a paradigm shift in the primary market and spawned a carnival on the inscription track. Star projects such as $ORDI, $ETHS, $POLS, and others have gained widespread attention.
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There is no project party, the asset's inscribed progress is visualized and everyone can check it.
In an instant, a primary market in which everyone could participate was like a shot of stimulants, igniting the enthusiasm of the entire encryption industry. It seems that a fairer and more "decentralized" era has arrived.
But, is this really the case?
In the excitement, I casually experienced the pleasure of "Inscribing" with a few tools outside of BRC20. When I minted a niche inscription on the ETH chain, I discovered a big problem: after the mint was complete, transactions and transfers could not be made! So, I checked the relevant information and found that public chains such as BTC, ETH, Polygon, and Avalanche define inscription transactions in completely different ways, and a trading gap is formed.
Currently, the inscription market other than Bitcoin Ordinals and BRC20 is developing wildly in a "non-standardized" way, which runs counter to the original intention of Bitcoin and the spirit of Satoshi.
Therefore, we urgently call on the inscription market to follow the DMT Standard and ensure the liberalization of the establishment of inscriptions. Transfers and transactions should not rely on any centralized third party, nor should they rely on smart contracts for internal settlement and create liquidity obstacles.
For example, among the more than two million inscriptions on the ETH chain, nearly 99% of them simply complete Inscribe and do not support transfer transactions. The inscriptions are not even qualified to lie quietly in the wallet and are worthless.
As mentioned above, the inscription you get by spending gas is just a string of code and completely lacks a transaction environment. At present, only header inscriptions such as ETHS use the project party's smart contract for internal settlement and realize the so-called "transaction transfer" function.
Is this still what we were originally pursuing: a new paradigm of "decentralized" asset issuance?
In this regard, we are taking action: UXUY is actively embracing Bitcoin and the spirit of Satoshi, continuing to provide infrastructure services for the Inscription track, following the Standards of DMT, building a standardized indexer for Inscription, and exploring a new combination of Inscription assets + DeFi...
As stated in the 《 UXUY Crypto Equity Manifesto 》: Trading is the only weapon to break down barriers. I always firmly believe that inscription is becoming the third largest asset after Token and NFT. Whether it is called SFT or Inscription, it can become the brightest star in crypto.