The competition among cryptocurrency asset protocols is fierce, and the OKX Web3 wallet enhances the one-stop experience

Author: 0xming

The failed attempt to implement the asset issuance concept "Colored Coins" on the Bitcoin network in 2012 highlights the significant advantages of Ethereum smart contracts. The earliest token standard on Ethereum, ERC-20, defined the interface specifications for token contracts through smart contract functionality, simplifying and unifying token issuance standards and trading frameworks while promoting interoperability between tokens. The success of the ERC-20 standard has driven the prosperity of the Ethereum token economy, with over 80% of projects using Ethereum as the underlying architecture.

Subsequently, the ERC-721 and ERC-1155 standards introduced non-fungible tokens (NFTs), creating new assets that differ from the fungible tokens supported by the ERC-20 standard, bringing innovative genes to areas such as blockchain gaming, on-chain identity, and digital art. In addition, various asset protocols such as ERC-223, ERC-884, and ERC-777 have emerged in the crypto industry, but most have remained silent amidst the waves of crypto development. Only a few key asset protocols, such as ERC-20, ERC-721, and ERC-1155, have become important pillars driving the development of crypto assets.

In 2023, the emergence of Bitcoin inscription asset issuance protocols like BRC-20, ARC-20, SRC-20, Runes, and DRC-20, as well as the exploration of token standards like ERC-404 that combine Ethereum and image coins, and the new Solana token standard Tiny SPL aimed at solving NFT liquidity issues, have broken the long-standing dominance of Ethereum's ERC-20 and ERC-721 asset protocols. The crypto asset protocols are now witnessing a hundred flowers blooming, with inscriptions, image coins, tokens, and NFTs continuously enriching the landscape.

At the same time, users' diverse asset trading needs are becoming increasingly strong, but the development of emerging assets on different public chains has exposed the backwardness and simplicity of their infrastructures, which not only fails to meet user demands but also exacerbates the fragmentation of hot assets, making it difficult for small-scale narratives to resonate with the industry. Against this backdrop, the OKX Web3 wallet, with its strong technological accumulation, quickly responds to market hotspots, creating a one-stop trading experience based on user needs, and is becoming an indispensable and advanced trading tool for Web3 users, fundamentally improving the above pain points.

ERC-404 and Tiny SPL Standards: Exploring a New Paradigm for Combining Ethereum Image Coins

Under the support of the ERC-721 and ERC-1155 standards, non-fungible token (NFT) assets have brought a revolutionary concept to Ethereum. However, due to their indivisible and unique characteristics, they cannot be traded through order book matching like ERC-20 fungible tokens, and can only be traded through the simplest listing method. Theoretically, as long as the market is large enough, the liquidity of NFT assets should not be a significant issue. However, due to their singular narrative and fixed gameplay, the liquidity problem of NFT assets has been widely criticized and has become a bottleneck hindering their further scalable development.

NFT fragmentation protocols such as Fractional, Niftex, and Unicly have never ceased to explore the liquidity challenges of NFTs, mainly by fragmenting valuable NFTs into more low-value NFTs or ERC-20 tokens. However, due to issues such as value confusion and the risks associated with relying on third-party protocols, there has been no significant breakthrough. Until recently, the emergence of the mixed token standard ERC-404, which combines ERC-20 and ERC-721, has led to a protocol with native liquidity and fragmentation, pioneering a new asset paradigm for combining Ethereum image coins. Taking the first project built on the ERC-404 standard, Pandora, as an example, when users buy or sell PANDORA tokens, they will simultaneously receive newly minted or burned Relicant NFTs, and the rarity will change at any time. This innovative gameplay opens up a new world of crypto assets.

The ERC-404 standard combines image coins into one but allows them to be bought and sold separately, enabling NFTs to maintain their original attributes while also being traded like tokens on DEXs. To better support more innovative asset protocols and quickly respond to user needs, the OKX Web3 wallet has taken the lead in supporting the ERC-404 standard. Users can trade ERC-404 tokens like PANDORA on OKX DEX and discover hot projects through the newly added ERC-404 section. They can also trade Relicant NFTs and other ERC-404 NFTs through the OKX NFT market, helping users safely and conveniently engage with the ERC-404 ecosystem.

The new token standard Tiny SPL born from the Solana ecosystem shares similarities with the ERC-404 standard. Its first ecological project, Deez Nuts (DN), can be traded as NFTs on the OKX NFT market and as tokens through the project's self-built AMM and OKX DEX. The metadata of Tiny SPL tokens is entirely stored on-chain, similar to Bitcoin Ordinals inscription assets. Currently, the OKX Web3 wallet has developed into the most comprehensive wallet supporting Solana ecosystem functions, offering rich rewards and a secure and convenient user experience. Users can not only conduct cross-chain transactions on the Solana network through OKX DEX, participate in mainstream protocol staking and lending in the Solana ecosystem through OKX DeFi, explore Solana NFTs and inscription ecology through the OKX NFT market, manage Solana assets through the OKX Web3 wallet, but also explore and interact with popular Solana DApps through the OKX Discover section, helping users quickly seize opportunities brought by new Solana token standards like Tiny SPL.

The emergence of Tiny SPL and ERC-404 standards allows NFTs to carry NFT-Fi attributes, but both are still in the experimental stage and carry risks of failure. However, this lays a good foundation for the development of image coins and expands the thinking, allowing users to experience more new asset protocols quickly, comprehensively, and securely through the OKX Web3 wallet.

Various XRC-20s Launching Successively: A Hundred Schools of Thought in Bitcoin Ecological Asset Protocols

The birth of the innovative and experimental Ordinals protocol has officially opened the curtain on the evolution of Bitcoin asset protocols. The emergence of Bitcoin token standards such as BRC-20, ARC-20, SRC-20, Runes, and DRC-20 inherits the ideal of "Colored Coins" for asset issuance on the Bitcoin network and has successfully made breakthroughs, evolving Bitcoin from a purely peer-to-peer electronic cash system towards more possibilities and addressing the income issues of miners after Bitcoin is fully mined.

Emerging asset protocols showcase the immense potential of the Bitcoin network ecosystem, with the narrative of inscriptions exploding. The OKX NFT market was the first to respond to user needs by launching the OKX Ordinals market, quickly establishing a presence in the market.

According to Dune data, on January 30, the OKX Ordinals market accounted for 89.3%, with total trading volume exceeding $1 billion, becoming the industry's largest BRC20 inscription and BTC NFT trading market. The OKX Ordinals market is fully decentralized, with no platform service fees for interactions, and supports one-stop transfer, trading, and inscription of BRC-20 and BTC NFTs, among other functions. It has also launched powerful inscription tools that allow users to batch inscribe with a single signature. The BTC network inscription can inscribe 1200 entries at once, while the EVM network inscription can automatically inscribe 50 entries at once, greatly simplifying cumbersome steps and improving trading efficiency.

Additionally, the OKX Ordinals market has optimized UTXO spending order to further reduce user GAS fees, and during user listing, purchasing, and other processes, it employs encrypted PSBT signatures, disables RBF transactions, and broadcasts on the server to prevent users from being maliciously stuck by low GAS. In terms of UTXO management, the OKX Ordinals market supports preventing effective UTXO spending and smartly releasing invalid UTXOs. The platform can automatically identify worthless NFTs and expired BRC-20 and BRC20-S inscriptions, helping users release occupied assets with one click.

The OKX Web3 wallet is gradually integrating inscription token standards such as ARC-20, SRC-20, Runes, and DRC-20, providing millions of users with zero-fee inscription buying and selling services, and offering the industry's first and most advanced one-stop inscription ecological platform. For example, the current support for inscription assets in the OKX Web3 wallet has expanded to a multi-chain inscription ecosystem. The OKX NFT market now supports recursive inscriptions, cursed inscriptions, BRC-420 standards, Solana inscriptions, and Aptos inscriptions trading, while OKX Discover has added an Ethscriptions section to help users interact with popular DApps in a one-stop manner and engage with the inscription ecology.

Although asset protocols like BRC-20 are not the ultimate solution for the Bitcoin ecosystem, they promote the development of the Bitcoin network, maintaining the security and legitimacy of Bitcoin assets while enhancing scalability. While it is impossible to replicate the innovations of Ethereum on the Bitcoin network, the evolution of the inscription asset protocol paradigm is akin to a renaissance, writing a new narrative for Bitcoin's future. The OKX Web3 wallet will be one of the most important infrastructures in the Bitcoin ecosystem.

Asset Protocols Enter a New Era: OKX Web3 Wallet Deepens One-Stop Experience

In the crypto industry, everything can be "tokenized." Tokens represent proof of revenue, governance, identity, contribution, etc., becoming the core of project development and enhancing user participation. Every moment, thousands of tokens are issued based on various asset protocols, making diversified token standards extremely important. The emergence of ERC-404, Tiny SPL, and various XRC-20 standards has broken the inherent paradigms of ERC-20, ERC-721, and ERC-1155 token standards, pushing asset protocols into a new era. With the future prosperity of public chains and the emergence and evolution of more emerging asset protocols, more choices will be provided for token issuance and value capture, which is crucial for the healthy development of the entire crypto ecosystem.

Currently, the boundaries between inscriptions, image coins, tokens, and NFTs are gradually blurring and moving towards integrated innovation. Influenced by the innovative demonstration effects of mainstream public chain asset protocols like Bitcoin, Ethereum, and Solana, the acceleration of asset innovation across different public chains has led to higher and more urgent demands for crypto trading tools. The OKX Web3 wallet continuously deepens the one-stop optimal experience through technological innovation, with DEX, DeFi, NFT market, and Discover sections supporting and being more compatible with each other to adapt to the ever-changing user needs.

In particular, the OKX NFT market, OKX DEX, and Discover section respond very quickly to user needs. Taking OKX DEX as an example, it is one of the industry's most powerful DEX and cross-chain aggregators, currently aggregating over 10 cross-chains, more than 20 public chains, and over 300 DEXs. Through X Routing smart routing, it enables a single transaction to utilize multiple DEXs simultaneously, providing users with the best prices, optimal liquidity, and zero transaction service fees. It also features a DEX market section, limit orders, KYT security checks, and other functions, essentially meeting users' trading needs for mainstream and innovative fungible assets.

In the crypto industry, several asset protocols are born every day, while several asset protocols die. Only a few asset protocols can stand out amidst the struggle, carrying the hope for a simple and efficient future and gathering greater community consensus. The market needs to cautiously and openly embrace this innovation.