OKX and Unisat Partnership
OKX, a major overseas crypto asset (virtual currency) exchange, and Unisat, an open source wallet for the Bitcoin (BTC) token standard (BRC-20), announced on the 12th that the BRC-20 trading system will be decentralized. announced a partnership for
OKX and UniSat unite to revolutionize BRC-20 transaction indexing on the Bitcoin blockchain 💪
🤝 Together, we pave the way for decentralized indexing, and trustworthiness of BRC-20
— OKX Web3 (NFT & Wallet & DeFi) (@okxweb3) May 12, 2023
OKX will work with Unisat Wallet to create a validation process for indexing BRC-20 on the Bitcoin blockchain. As part of the partnership, Unisat will become OKX’s BRC-20 market data provider.
BRC-20 is an experimental token standard introduced in March 2023 by an anonymous developer called “Domo”. The name comes from the Ethereum token standard ERC-20, but it does not have smart contract functionality.
The function of the BRC-20 is to inscribe specific data on Satoshi, the smallest unit of Bitcoin, to create a unique digital asset. Receiving and sending tokens requires working with dedicated interfaces and tools.
What is Ordinals
Ordinals is a system that assigns a unique number to Satoshi, the smallest unit of Bitcoin, and tracks them. Introduced in January 2023. Satoshi himself creates a kind of digital artifact (≒NFT) with a special value through the method of “imprinting” specific data on each individual Satoshi.
Unisat Wallet provides a user-friendly interface for BRC-20 tokens and the functionality required for trading. One of its key features is indexing, which involves aggregating and keeping up-to-date information about BRC-20 tokens.
Through indexing, Unisat Wallet ensures users have access to accurate, real-time data related to BRC-20 tokens. This includes token balances, transaction history, token transfers, deployments and other relevant information.
So far BRC-20 has had problems with centralization as indexers rely on third parties like Unisat. Because Unisat is controlled by a single entity, it is subject to information censorship and manipulation, and can also be a single point of failure for BRC-20.
A representative of Unisat said about the partnership with OKX:
The partnership to develop a cross-validation process for indexing BRC-20 transactions is the first step towards decentralized indexing and will increase the overall strength and credibility of BRC-20.
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Expansion of BRC-20
Over 5 million Ordinals have been recorded on Bitcoin since the protocol launched earlier this year. On the other hand, the number of tokens issued under BRC-20 has reached 14,000 types, with a market capitalization of over 65 billion yen ($500 million).
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Ordinals has sparked controversy within some of the Bitcoin community. Bitcoin purists criticize Ordinals for pushing up Bitcoin transaction fees and potentially damaging Bitcoin’s image as a reliable P2P payment network. Proponents of the protocol, meanwhile, argue that it could attract more people and expand use cases for the Bitcoin network.
Ordinals and BRC-20 tokens are made possible by the 2017 scaling proposal Segregated Witness (SegWit) and the Taproot upgrade in November 2021. The purpose of the Taproot upgrade included the introduction of smart contract functionality to Bitcoin, improved privacy features and processing speed.
These updates increase the amount of arbitrary data that can be stored within a blockchain block, thus making Ordinals possible. Using this mechanism, Ordinals users will be able to store data such as images and videos on the BTC blockchain via scripts.
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