Binance’s report titled “Navigating the Inscription Landscape”, Bitcoin It reveals the expansion potential of the (BTC) ecosystem and details three key protocols that show how BTC can expand its influence in areas such as NFTs, decentralized finance (DeFi) and vehicle industries.
Throughout 2023, the Bitcoin network has undergone a significant evolution with the emergence of innovations such as inscriptions and BRC-20 tokens. These innovations expanded the capacity of the network and created a boom in the market, resulting in a significant increase in Bitcoin transactions and network fees. This situation led to a movement similar to the speculative trends created by meme coins.
According to Binance’s report, although Bitcoin inscriptions are still in the development stage, they have spread to a wide variety of areas, from DeFi to NFTs and even sports teams. This expansion is spearheaded by several innovative projects.
bitSmiley, for example, shows that Bitcoin is making great progress in the DeFi ecosystem by bringing together stablecoins, lending mechanisms, and derivatives. The launch of bitUSD, a Bitcoin-backed stablecoin, is considered a critical step in incorporating traditional financial instruments into the Bitcoin ecosystem.
Liquidium, on the other hand, stands out as an innovative peer-to-peer lending protocol that provides loans using Bitcoin-based assets, such as inscriptions and BRC-20 tokens, as collateral. This demonstrates the growing popularity of the Bitcoin network in the DeFi space and the economic value of inscriptions. Binance notes that Liquidium’s operational structure, similar to other peer-to-peer lending platforms, allows borrowers to provide collateral on terms they prefer, offering lenders appropriate BTC loans based on their risk-reward preferences.
Binance also reveals that Liquidium has processed more than 118 BTC in trading volume since its founding and has completed or is still active more than 2,700 credit transactions.
The portal stands out as a cross-chain liquidity platform that offers decentralized exchange and wallet services and facilitates the exchange of BRC-20 tokens with other blockchain networks. This allows Bitcoin to better integrate into the overall blockchain ecosystem, increasing its usage and accessibility.
The emergence of inscriptions and BRC-20 tokens has led to significant transaction activity beyond Bitcoin on other blockchain networks that adopt similar protocols, including Ethereum Virtual Machine (EVM) compatible chains. Although these chains are inherently capable of transacting both fungible and non-fungible tokens, inscriptions have seen notable trading volumes, particularly driven by speculative interest.
There are different opinions about the inscriptions and BRC-20 tokens; While critics point to network congestions and high transaction fees, supporters see these as valuable for their potential to increase the scalability and security of the Bitcoin ecosystem.
