Long push: Inference on the future of the Bicoin ecosystem

Original author: 0xWizard

Original source: twitter

Note: This article comes from @0xcryptowizard Twitter, and Mars Finance compiled it as follows:

I would like to use a few facts to make an inference about the future of the Bicoin ecosystem:

Fact 1: Bitcoin is very suitable for asset issuance.

reason:

1️⃣Sufficiently decentralized;

2️⃣Safe enough;

3️⃣It already carries a large enough amount of funds.

Fact 2: Bitcoin main chain needs L2 expansion

reason:

1️⃣ To ensure sufficient decentralization and security, the main chain will not speed up or expand the block size;

2️⃣The main chain has limited smart contract capabilities and is not suitable for running more complex applications;

3️⃣If there is mass adoption in the future, the main chain will definitely not be able to bear it;

4️⃣The assets issued on the main chain need to be fully utilized and liquid.

Fact 3: In the future, such expansion needs to be sufficiently decentralized/permissionless

reason:

1️⃣ At this stage, some compromises may be made for speed and volume;

2️⃣ In the future, if the main chain expansion process cannot be truly realized and is sufficiently decentralized/permissionless, then the significance of all bitcoin-based asset issuance and its foundation will not stand up to scrutiny.

Inference: web5=web2+web3 will be the future path of bitcoin ecosystem.

reason:

1️⃣Based on fact 1, bitcoin is suitable for asset issuance.

There will be some winning asset protocols now and in the future, and the scale of assets issued based on these protocols will reach hundreds of billions or even trillions of US dollars.

2️⃣Based on fact 2, the Bitocin main chain needs to be expanded.

Assets issued on the main chain and obtaining liquidity and smart contract capabilities on the main chain are absolutely unable to meet such large-scale demand.

Therefore, we need L2 or even L3 to complete the tasks after issuing assets.

3️⃣Based on fact 3, we need a feasible way to complete the permissionless + decentralized link between the main chain and L2/L3.

There are several routes being explored at present. In the long run, I am most optimistic about "isomorphic binding" because it directly omits the "cross-chain" and allows the utxo-base smart contract public chain to directly carry all asset application behaviors.

4️⃣What will the future look like?

Let’s look to the future:

L1

We will have several asset issuance protocols selected by the market on the main chain, most of which will be issued based on UTXO and have the security of the main chain;

L2 Layer

We will use isomorphic binding to transfer these assets to L2 in a very BTC way, so that these assets can obtain Turing-complete smart contract capabilities;

L3 Layer 3

We will use the "channel" between L2 and L3, such as the Lightning Network, RGB client verification, and peer-to-peer communication protocols similar to Nostr, to allow applications that can support hundreds of millions of users to run on L3 in the form of web2.

At the same time, these applications can interact and flow quickly/permissionless/decentralized with various BTC main chain issued assets on L2 with smart contract capabilities.

This is the future we can look forward to, a world of web5.

An asset that truly possesses all the characteristics of web3: decentralization, permissionlessness, and sovereign personal characteristics.

In addition, it can create web2-level applications that can carry hundreds of millions of users without being restricted by the blockchain itself, and seamlessly link with web3 assets in a truly crypto way.

This is the future of the BTC ecosystem that we can see, a truly exciting world where BTC and BTC ecosystem assets can flow freely and quickly on L1/L2/L3.

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