Analysis of the Emerging Bitcoin NFT Protocol GBRC721 and Its Ecological Projects

Recently, the total number of inscriptions minted under the Bitcoin NFT protocol Ordinals has surpassed 10 million, with cumulative fee revenue reaching 1578.4611 BTC, valued at approximately 44.14 million USD. Since the launch of the Ordinals protocol on the Bitcoin mainnet on January 30 of this year, its development speed and scale expansion have been remarkable. In just 4 months, the number of inscriptions minted has surged from 1 million to 10 million, a tenfold increase.

The rapid increase in the number of inscriptions has directly led to a surge in Bitcoin network fees, which remain at a high level. At the same time, a large number of creators have flooded into the Ordinals ecosystem, further intensifying the demand for Bitcoin block space. To address these issues, developers have introduced new protocols or standards, among which the most notable is the GBRC721 protocol.

Introduction to GBRC721 Protocol

The full name of the GBRC721 protocol is generative-brc-721, created by software engineer Jerry. This protocol aims to optimize the use of block space, improving efficiency by 50%-90%, thus accommodating more creators and promoting innovation. GBRC721 also addresses the issue of projects having to choose off-chain storage on IPFS, enabling Bitcoin on-chain NFTs to achieve full-chain storage without relying on third-party retrieval support.

As more platforms integrate the GBRC721 protocol, users can directly view the actual images generated by minting inscriptions in the front-end interface, rather than just displaying text data. This process is achieved by scanning the user's text inscription "gen-brc-721" and then regenerating the image using on-chain data and storing it in the system infrastructure.

The deployment and engraving process of GBRC721 is similar to that of BRC20 tokens, mainly consisting of three steps:

1. Create BRC721 collection
2. Minting Non-Fungible Tokens
3. Transfer non-fungible Ordinals to standard ordinal inscriptions

To optimize user experience and ensure fair distribution, the GBRC721 protocol is considering the introduction of an on-chain whitelist mechanism. This will be achieved by adding an optional key in the deployment inscription, pointing to a separate inscription containing the details of the NFT whitelist application.

GBRC721 Ecosystem Project

OrdiBots

OrdiBots is the first demonstration project of the GBRC721 standard, similar to the ordi token when the brc20 protocol was launched. This is a collection of 1000 NFTs composed of 26 different feature combinations. Through the GBRC721 standard, OrdiBots achieves approximately 55% block space savings.

OrdiBots completed its minting from May 22 to 23, becoming the first project under the GBRC721 innovation standard, receiving significant attention and capital inflow. Currently, OrdiBots has a total trading volume of 26.8 BTC on major trading platforms, with 350 holding addresses. Its minting cost was about 3 USD, while the highest floor price reached 0.12 BTC (approximately 3200 USD), a rise of over 1000 times.

The success of OrdiBots is inseparable from the strong consensus of its community. The project attracts wide attention by holding daily auctions for gold armor and distributing the proceeds to community members. Community members have also spontaneously developed tools for rarity checking, holding rankings, and actively interact with other ecological projects.

OrdiBlocks

OrdiBlocks was launched by members of the DogePunks management team, with a total of 666 pieces. Influenced by the surge of OrdiBots, OrdiBlocks were in high demand during minting, with each collectible being minted more than 4-5 times.

After the engraving ended, OrdiBlocks rose from a cost of 3 dollars to as high as 400 dollars, and is currently down to around 90 dollars. The project's total transaction volume is approximately 60,000 dollars, with 223 unique holding addresses and 105 listings. Its community is actively operating to create more value for holders.

Summary and Outlook

The GBRC721 protocol has attracted significant attention due to the success of the OrdiBots project, but its ecological infrastructure still needs improvement. For example, some mainstream trading platforms have yet to support the actual image display of inscriptions under the GBRC721 standard. In the future, ecological projects need to continuously establish and expand consensus while the community's enthusiasm is high, to avoid being a flash in the pan.

The rise of the Ordinals protocol has brought new vitality to the Bitcoin ecosystem. From its initial obscurity to its current prominence, the "new project" frenzy of Bitcoin ecosystem projects reminds one of the DeFi summer of 2020. While some still hold a skeptical attitude towards application development on Bitcoin, the Ordinals protocol undoubtedly opens up new avenues for development in the current market.

In the current stage of Web3 where it is still in the concept and storytelling phase, the Ordinals protocol provides a brand new track for the market. This may become an opportunity to break through the current limitations of the market and bring new development opportunities for the entire industry.