The advantages and development trend of the inscription asset creation model

Source: Daoshuo Blockchain

Recently, the Bitcoin ecosystem has become lively again, and various tokens have begun to be sought after by many people.

The most surprising of these tokens was SATS.

I remember in the Twitter AMA in early September, a reader left a message asking me what I think of sats, especially if there is any potential for the future price of this coin.

I remember answering something like this: I think the amount of SATS (2,100 trillion) is too large, and it may not be easy to raise the price of such a large number of tokens. So I think it doesn’t matter if it’s just fun to play, but if it’s for what the price will be in the future, I’m afraid it’s not very appropriate.

At that time, the SATS had not yet been played, and I remember that it seemed to be only about 50%. But later, as more and more people on the Internet paid attention to this coin and promoted this coin, the speed of SATS coining became faster and faster, and finally at the end of September, all the 2100 trillion coins were sold.

At the time of writing, I checked the data on the Internet, and the number of addresses held by sats is 36,945, which is the largest number of addresses held among all BRC-20 tokens, nearly three times the number of addresses held by the leading boss ordi, and the trading volume of sats is also the first among the current BRC-20 tokens, and of course, its price has increased nearly 10 times compared to the price at the time of coining.

This was a bit of a surprise to me.

I thought about the reasons for this, and I’m afraid the main ones are as follows:

1. Some KOLs on the Internet advertise that sats holds the most addresses and is “the most decentralized”.

2. The name of SATS is more suitable for the Bitcoin ecosystem.

3. The BRC-20 token trading platform launched by Unisat uses sats as a transaction fee token, that is, token exchange transactions on it require sats to pay the transaction fee.

4. The superposition of the above factors leads to a strong FOMO sentiment among users in the ecosystem, which in turn pushes up the price.

Among these reasons, I think it is worth observing the third point— which is that the new application empowers SATS and makes SATS have use cases. To some extent, this can be seen as a “win-win” strategy that the application team has come up with.

Before the official announcement of Unisat empowering sats, sats itself had accumulated a certain consensus with the spontaneous publicity and self-development of users and communities, and gathered a considerable number of holders.

In this case, Unisat’s launch of the app, by empowering sats, is actually to attract users and popularity for its own app, and create influence and marketing among many sats holders.

This approach reminds me of the DeFi summer of 2020.

At that time, there were already some DeFi applications that began to gradually spread out of the circle— from the original seed users to a wider range of crypto users.

But the speed and impact were still too slow and too small.

In that case, Compound pioneered the issuance of the governance token COMP, which attracted users and created hot spots through liquidity mining, which quickly accelerated the speed of the project’s out-of-the-circle process. Many users may not have used Compound before, but because of this move and in order to get tokens for free, they have spontaneously become Compound users.

As a result, the DeFi summer with unprecedented heat and scale was quickly detonated.

Compound’s approach is to have an app first, then create assets, and use assets to attract users and build consensus.

Now, Unisat’s approach is reversed: it is to have an asset with a certain consensus (sats) first, and empower the asset through the application, so as to attract consensus to the application and attract users to the application. **

This is not only the case for sats, but also for the popularity of ETHS, the Ethereum inscription token, on a similar path.

Here, we should note that: **Using inscription technology, the cost of creating assets is now much smaller than that of smart contracts, and the speed and efficiency of creating assets are much higher than that of smart contracts. **

This change in the asset creation model has made the current crypto ecology have undergone subtle changes:

**In the current ecology, almost any hot spot will be quickly obtained by the inscription ecology to create a “concept token”, and through this concept, a group of seed holders will gather consensus. **

That’s much faster than the speed of creating an app.

From this, I can’t help but wonder if in the next development, we will see this model of Unisat widely replicated: after the new application is generated, it will complete the rapid convergence of original users and complete the rapid accumulation of original consensus by empowering existing tokens and using the consensus and users of existing tokens? **