Note: This article is from @0xjingle Twitter, which is an encrypted KOL. The content of the original tweet is organized by MarsBit as follows:
Innovation or gimmick? What was the $OSH that was played instantly yesterday?
What is special about the ORC-Cash protocol? More efficient BRC20/ORC20 protocol?
Yesterday afternoon @Cirus001 quietly sent out a tweet, only a few letters "Introducing: The ORC-CASH Token Protocol", plus a link on gitbook. Announced the official launch of the ORC-Cash protocol standard. The first token deployed based on this standard, $OSH, was minted in a short period of time, and many people still scrapped it because the GAS was low. The English blogger @BobBodily has been working on the research of the decentralized brc20 indexer, and he immediately gave a favorable comment and forwarded this article. It is worth mentioning that @btctoolpro detected the popularity of $OSH casting in memepool at the first time. At the same time, it also found that there were a large number of fans who deployed $OSH in the follow-up, suspected of English users who wanted to join after seeing the tweet.
I always knew that the former Unisat COO Sonic was promoting the .sat domain name in the early days, and later made a lot of contributions and efforts to the improvement of the ORC20 protocol. Compared with BRC's magical touch, ORC is more like crafted with care. Some time ago, I had a brief exchange with Sonic in the middle of the night. He also introduced the overall design of ORC-Cash, and I thought it was very good at that time. Then be diligent and stay up late to write about what is the ORC-Cash protocol, is it an innovation or a gimmick?
1. What is the ORC-Cash protocol
The ORC-CASH protocol is an experimental token standard based on the Ordinals protocol, which aims to provide a simplified version of the ORC-20 standard for UTXO (Unspent Transaction Output) type blockchains for easier implementation and wider adoption.
In short, ORC-CASH returns to the UTXO model of BTC and simplifies the ORC20 standard. It can be regarded as an upgrade after BRC20 and ORC20.
The ORC-CASH protocol introduces a cash system, using these inscriptions/Ordinals as tokens, which can be freely and securely transmitted in the network. The protocol also includes features such as credit and upgrade specifications.
The two keywords here are helpful to understand the ORC-Cash protocol, simplification and UTXO.
These two points seem to be able to solve the current pain points of XRC20 on BTC, thus truly making the application of XRC20 possible.
2. Origin of ORC-CASH and BRC20 ORC20
The Ordinals protocol supports files in various formats, from small pictures in the early days to domain names in txt text later. Later, a chain analyst named domo was inspired and experimentally released a standard in jason format to record transaction records on the chain. Since BTC does not have a smart contract, this kind of txt on the chain becomes a bookkeeping book, making it possible to issue coins on the Ordinals protocol. This principle is similar to the stone receipts used in Jerusalem 2,000 years ago, or the "stone coins" used on Yap Island in the corner of the Caroline Islands in the western Pacific Ocean. The symbol of great wealth is to have a surprisingly large "fei".
It didn't take long for people to find out that BRC20 is good, but there are many problems, such as extremely low efficiency, high reliance on centralized indexes, and simple standards, so chaos abounds, and the standard interpretation power is also extremely centralized, basically controlled by a small number of trading markets. So some people began to explore different standards, among which ORC20 is a group of people gathered to try to gradually improve some of the drawbacks of BRC20.
ORC20 has launched more than 10 OIPs and is backward compatible with BRC20. However, due to frequent and complicated standard updates, users basically hold a wait-and-see attitude, and basically do not understand the difference between OIP10 and OIP9.
When it comes to ORC-Cash, it can be said that it is a protocol inspired by the re-integration on the basis of ORC20. The basic idea is to simplify ORC20 and enable UTXO, which must be supported by reopening an indexer and trading market that is at least open source.
Three characteristics of ORC CASH
Needless to say, simplification basically improves efficiency, makes it easier for users to use, reduces the number of inscriptions, and does not earn the middle price difference for printing inscriptions. The buzzword is "cost reduction and efficiency increase"; some new functions such as AirDrop, upgrades, etc., are basically the specific manifestations of this.
The highlight is a UTXO-based cash system. The system utilizes the serial number/inscription as the token itself, which can be transmitted freely and securely through the network and authenticated by every node on the network. This can solve the centralization problem of the index.
The ORC-CASH protocol utilizes the UTXO (Unspent Transaction Output) security model by utilizing the concepts of inscription and Ordinal. In UTXO-based networks, UTXOs represent cash/coins on the network. The protocol inscribes data to a single Sat (bitcoin's smallest denomination) contained in a UTXO, creating an Inscription (packet of data) and an Ordinal (inscribed Sat). This inscription is included in the blockspace and stored on-chain at every node on the network.
By utilizing the UTXO security model, the ORC-CASH protocol ensures that token transactions are fully transparent and immutable. Every node on the network tracks and verifies the movement of coins and inscriptions, providing a high level of security. The protocol also allows for the merging or splitting of UTXOs, creating larger or smaller UTXOs with different amounts of Sat.
The ORC-CASH protocol integrates the UTXO security model to create a cash system in which Inscription and Ordinal represent tokens, ensuring transparency, immutability and security in token transactions.
The basic principle of the cash system is that splitting cash notes carrying token balances requires designating a burn/blackhole wallet address (burn wallet) on each network. Cash notes that need to be split must be sent to a designated burn wallet address on each network, which is similar to a common automated teller machine (ATM). Sending any valid cash notes to the burn wallet will create a token credit for the sender's wallet address, which allows wallet holders to create additional valid cash notes in their own wallets by sending inscribed smaller amounts until the token credits are exhausted.
It doesn't matter if you don't understand it, imagine it as an automatic change machine. The original text says "automatic teller machine ATM", which can change your large checks and cashier's checks into small cash, so it can be circulated for consumption.
Fourth, innovation? Gimmick?
ORCCash has indeed made an essential innovation on the basis of BRC ORC. It simplifies and uses UTXO to build a cash system, and the index and trading market will also be launched.
But close your eyes and think about it, Ordinals drew a picture on the original banknote and regarded it as a work of art, and suddenly someone turned that picture into money. Imagine drawing a 1,000 "Hong Kong dollar" on a 1-dollar bill, and the money can still be spent. Wouldn't it be great? This is how magic was produced, and since then Bitcoin has truly entered the age of doll-style magic. That's the beauty of Ordinals.
In the current market, the first bubble of BRC20 has basically ended. Maybe the second bubble era will come again with the launch of BRCCash? We will wait and see, eliminate prejudice, embrace new things, and let the market vote with its feet to make choices.
It is worth mentioning that after deploying $OSH, Sonic and his team did not participate in yesterday's casting, which also showed the spirit of being fair and not rushing.
What do you think about ORC CASH? Did you hit $OSH?
Move your little hands to forward the comments, it's not in vain for me to stay up late to write
