The inscription layout of the dark horse NUVOGENESIS on Metis

Author: 0xDabai

According to L2beat data, Metis has surpassed strong competitors like zkSync and Base, becoming the Top 3 Layer 2 in the Ethereum ecosystem, second only to Arbitrum & Op Mainnet, with a 51.43% increase in TVL over the past 7 days, bringing the total TVL close to $1 billion.

The influx of inscriptions often brings a short-term surge in network traffic, which can easily lead to network outages. Moreover, if there are no effective retention strategies, the popularity of inscriptions can shift rapidly.

New Trends in Inscriptions Protocol Competition

Galaxy Research and Mining predicts that by 2025, the market value of Ordinals will reach $5 billion, while the estimated number of inscriptions at that time will only be 260,000. Currently, the number of inscriptions has reached 33 million, growing 126 times in just six months. The market cap of Ordi has reached $400 million, and the market cap of Sats has reached $300 million. This indicates that the overall market forecast for inscriptions has been significantly underestimated.

As funds continue to flow into the inscriptions market, the complex and expensive operational processes of original inscriptions are increasingly being abandoned by users. New inscriptions protocols will create new competitive dynamics in terms of human-computer interaction, costs, and scalability.

Numerous protocols, including Atomical, Ethereum's Ethscriptions, and Solana's SPL20 protocol, exhibit significant differences in terms of costs, divisibility, scalability, and user experience. Currently, no single protocol can lead in all four aspects simultaneously, and at least none of them are free.

Additionally, the trading markets associated with different protocols generally do not support the division of inscriptions, which lowers the threshold for inscription trading and circulation, hindering the widespread adoption of inscriptions.

Therefore, if new inscriptions protocols want to engage in differentiated competition with existing protocols that have already established a first-mover advantage, they need to break through the aforementioned pain points.

Nuscriptions Protocol and Innovation

On January 19, 2024, NUVOGENESIS completed a massive engraving of 1 million inscriptions in just 12 hours. NUVOGENESIS has a total of 100 million tokens, with each inscription containing 100 tokens, totaling 1 million inscriptions.

Using a free minting model, NUVOGENESIS quickly completed the engravings, and user enthusiasm was very high, with the Metis network handling the extremely high concurrent pressure.

NUVOGENESIS is the first inscription on the Nuscriptions protocol and represents the platform's rights on NUVO. We note that among many inscriptions protocols, the Nuscriptions protocol has a comprehensive ecological support and layout to address the differentiated competition among inscriptions protocols.

Nuscriptions is one of the innovations in the blockchain field, revolutionizing the blockchain experience by integrating the efficiency of centralized exchanges into a decentralized environment. For Nuscriptions, deploying on an EVM-compatible Layer 2 like Metis addresses the typical challenges of congestion and high transaction fees associated with Layer 1 networks, improving efficiency and providing an economically viable solution in the DeFi space.

Currently, Nuscriptions is equipped with NIP-20 and NIP-721, allowing for various operations such as deployment, minting, and transfer. These protocols make transactions flexible and simplify the user experience without requiring direct interaction with smart contracts.

In fact, as the largest Web3 ecosystem alongside BTC, Ethereum carries more users and developers compared to the BTC ecosystem, and its capital retention rate ranks first in the Web3 space. Therefore, the market favors inscription projects in the Ethereum ecosystem and looks forward to related inscriptions.

Inscriptions on Ethereum have the following characteristics:

1. A large and active community provides ample liquidity and robust price trends for inscriptions.
2. The thriving ecosystem on Ethereum allows inscriptions to naturally integrate into extensive ecosystems like Pendle and Curve, providing pathways for subsequent integration into various exchanges, liquidity pools, and DeFi platforms.
3. Ethereum's powerful smart contract capabilities allow inscriptions to interact with decentralized applications (dApps) and other smart contracts. This interaction can enable complex operations and use cases, such as staking, yield farming, or participating in decentralized finance (DeFi) activities, as well as adding functionality and practicality layers. This may include additional information, unique identifiers, or specific attributes to enhance value, utility, and appeal. This means that inscriptions can further empower value.

On this basis, Nuscriptions also allows for the tokenization of various assets on the Ethereum blockchain. This enables users and projects to create digital representations of assets. In short, based on Nuscriptions, developers can wrap tokens into inscriptions for issuance. This idea aligns with the current trend of inscription issuance.

As an innovative inscriptions protocol, Nuscriptions encompasses the engraving market NuMarket, the trading market NuDex, and has birthed the first inscription based on Nuscriptions, Nuvo. The entire protocol now possesses a basic completeness for ecological development (which will be introduced below) and is validating ecological value through Nuvo.

NuMarket: Building a Bridge for Capital Flow Between Layer 1 and Layer 2

Currently, in the ETH ecosystem, inscriptions protocols across different ecosystems are not interoperable. For example, assets from Ethscriptions cannot circulate to Arbitrum, and Ethscriptions is even regarded to some extent as an Ethereum scaling solution on par with Layer 2.

NuMarket has innovated in this pain point. NuMarket is an inscription market built on the Nuscriptions protocol, and since Nuscriptions is deployed on an EVM-compatible Layer 2 like Metis, this allows users' assets to flow freely between Layer 1 and Layer 2 within the EVM context.

NuMarket has the following four functions:

1. Inter-layer asset bridging: Facilitating seamless movement of assets between Ethereum Layer 1 and Layer 2, expanding market access.
2. Community participation: The Nuvobadge system promotes user identity and community involvement.
3. Rewards and trading fee rebates: Providing trading fee rebates based on activity, offering financial incentives for platform usage.
4. Gamification and social proof: Enhancing user participation through gamified experiences and visible reputation scores.

NuDex: Providing Ultra-Low Gas Trading Experience and Derivatives Trading Experience

NuDex is a professional derivatives market for inscriptions based on the Nuscriptions protocol. It is also a necessary infrastructure for the Nuscriptions protocol.

Nuscriptions has deconstructed the familiar trading paradigm, using NuMarket to handle the basic gameplay of the current inscriptions track, namely engraving, trading, issuance, and circulation.

However, this is still far from unlocking the potential of inscriptions in the Ethereum ecosystem.

The idea of Nuscriptions is to endow inscriptions with derivative attributes, leveraging the thriving DeFi Lego of Ethereum to amplify the value of inscriptions, and this task is placed on NuDex.

Unlike NuMarket, NuDex specializes in contract and derivatives trading. It is akin to dydx on Ethereum inscriptions, offering perpetual contract trading, margin trading, spot trading, lending, and other services. NuDex stands out in market activities with its innovative trading methodology and order book model.

NuDex operates as follows:

NuDex specializes in contract and derivatives trading, similar to dydx on Ethereum inscriptions, providing perpetual contract trading, margin trading, spot trading, lending, and other services. NuDex stands out in market activities with its innovative trading methodology and order book model.

• Trading methodology: Transactions are initiated through 0 Metis tokens with relevant inscription data, significantly reducing fees compared to Layer 1 transactions.
• Order book model: NuDex employs an order book model, which is crucial for maintaining liquidity and efficient market operations.
• Index for fair and transparent operations: Using an indexer ensures the fairness and accuracy of result calculations, benefiting from on-chain transparency.

In a POS consensus environment, each validator must attach their signature, verifying all signatures and their corresponding public keys one by one, which consumes a large amount of block space and transaction fees.

This can lead to two outcomes: one is network congestion, causing instability in the mainnet and triggering outages. In fact, many Layer 2 solutions in the Ethereum ecosystem have already validated the adverse effects of congestion when handling the popularity of inscriptions.

On December 16, 2023, the Arbitrum One sequencer stopped operating at 10:29 AM EST during a significant surge in network traffic. The official reason given was the spike in user numbers brought about by the inscriptions protocol, which caused the Arbitrum sequencer to stop working, ultimately leading to a network outage.

On December 17, during the minting of SYNC inscriptions, the zkSync network also experienced a brief "outage," with the blockchain explorer not displaying any blocks.

On the other hand, gas fees are relatively expensive. Although the current Ethereum ecosystem gas fees have decreased due to Layer 2 empowerment, they are still quite high for inscription users.

Due to the gas design of smart contracts in Ethereum, any successful contract interaction requires a gas fee of at least 21,000, placing a heavy gas fee burden on users across the ecosystem.

Thus, NuDex transactions are initiated through 0 Metis tokens with relevant inscription data, greatly alleviating users' gas pressure and creating high liquidity.

Additionally, NuDex has two key features:

1. Multifunctional trading options: NuDex offers a wide range of financial activities, including innovative derivatives.
2. Risk management tools: Users can access complex risk management derivatives.

Overall, the most important engine of the Nuscriptions protocol lies in NuDex. Through the empowerment of complex derivative gameplay, Nuscriptions may discover and lead new ways of inscriptions.

Nuvo: The Nuscriptions Inscription Protocol on Metis

Once the infrastructure is complete, Nuscriptions has also issued its first inscription: Nuvo. At the same time, the Nuvo inscription represents a part of the Nuvo token. This engraving, as a unique digital artifact, embodies the spirit and innovation of the Nuvo ecosystem.

Conclusion

As an innovative inscriptions protocol, Nuscriptions is engaging in an interesting social practice. Nuscriptions, including NuMarket and NuDex, form a comprehensive ecosystem that cleverly combines decentralized finance principles with modern financial functions. While NuMarket focuses on community participation and inter-layer asset bridging, NuDex meets advanced financial needs by providing innovative trading services. Together, they reinforce Nuvo's pioneering role in the blockchain technology field.

Based on Nuscriptions, with the engraving market NuMarket as the initial engine and the professional inscriptions derivatives market NuDex as the core flywheel, a new approach to inscriptions is being explored, and ultimately, we can judge the value by measuring the real performance of Nuvo inscriptions.