Vision
Scaling Bitcoin without compromise, other than that, there's so much more we can do
Vision
We progress toward bringing general purpose computation to Bitcoin inscriptions.
We are committed to creating a universal state machine platform based on the paradigm of the Virtual Machine built on Inscriptions, which targets to traditional Apps.
Rationale
Section Ⅰ
Inscriptions such as Ordinals, Atomicals, etc, were designed to model the creation, ownership, and transfer of non-fungible digital artifacts. Despite the tremendous potential this functionality shows, it is fundamentally limited. It is not surprising that we can always hear the constant request from the communities over the world: "Make inscriptions/Ordinals do more things!"
Undoubtedly, we can add new functionality to inscriptions by reinterpreting the inscriptions themselves. For example, as in the BRC-20 standard on Bitcoin, a properly-formatted Ordinals inscription could represent not a digital artifact to be held or transferred, but rather a one-time command like "deploy this new token!" or “deposit token”. Actually, we have seen some of popular platforms, for instance, Unisat, are experimentally coming out more complicated features on this way.
An even more inspiring example here is that ESIP-4 introduces the Ethscriptions Virtual Machine (ESC VM), a new protocol built on top of Ethscriptions. The ESC VM enhances the functionality of the Ethscriptions Protocol by enabling ethscriptions to function as computer commands in addition to digital artifacts. These computer commands allow users to interact with special computer programs called Dumb Contracts.
The ESC VM provides Dumb Contracts with an environment similar to the EVM, enabling Dumb Contract functionality to parallel that of Smart Contracts. However, since Bitcoin natively does not support smart contracts, equipping Bitcoin's native network with such a computing platform is particularly important. Furthermore, implementing computation and storage in this manner would be significantly cheaper compared to the existing smart contracts currently running on Ethereum. This argument has also been confirmed in the ESC VM proposal.
Similar to the goal of ESC VM in Ethereum, the purpose of the 0xVM is to enhance the functionality and scope of the Ordinals Protocol by enabling it to function as a general computation engine. Users access the 0xVM by creating special inscriptions that the 0xVM interprets as computer commands to the protocol defined.
0xVM is neither a blockchain nor a Layer 2 solution. It represents a new path of exploration for scaling Bitcoin. The most enticing blueprint is we progress toward bringing general purpose computation to inscriptions, which increases the possibility of introducing a wider range of application scenarios within the Bitcoin ecosystem.
We pay tribute to Facet and Ethscriptions, as they have conducted much exploration ahead of us. However, during our own experiments over the past two months, we have realized the challenges of implementing our vision on Bitcoin due to the different technical architectures of Bitcoin and Ethereum. Nevertheless, we have found corresponding solutions to these challenges. What's even more exciting is that we have every reason to believe that the superiority of UTXO makes the future of 0xVM even brighter.
Section Ⅱ
In application development, regardless of scale, the maintenance of state machines is a fundamental and critical task. State machines simplify the design and implementation of complex workflows, which can help reduce complexity and improve maintainability. Yet, most enterprises continue to allocate considerable engineering efforts to this sector, due to the inherent challenges in designing and maintaining state machines. The complexity escalates especially when dealing with intricate logic, making robustness harder to achieve.
Take inscriptions, for instance. Asset management leans heavily on indexers, essentially serving as off-chain ledgers. Their implementation complexity is palpable, like needing to index and trace all UTXOs, involving lengthy and intricate logical sequences. Any error in this chain can compromise the entire ledger. A well-crafted state machine for ledger management could significantly simplify these operations, considering several approaches:
RDBMS-Based State Machine Applications
This approach involves building the state machine's architecture and components from the ground up, demanding significant effort and often resulting in lower stability due to the need for independent management of the state machine's intricacies.
Ethereum/L2-Based DApps
Ethereum is essentially a transaction-based state machine, transiting from an initial state to a current one through transactions.
Here, Ethereum functions as the state database, with new states continually written via smart contract calls. The relational database records only the outcomes of these executions, forming the backbone of the state machine applications. Ethereum handles the intricate aspects of state machine management – security, consistency, etc., leaving users to focus on specific programming logic. However, this method incurs substantial costs and faces issues like low TPS and complex asynchronous cache management due to the inherent blockchain nature.
The concept of using Ethereum's Layer 2 as an alternative faces similar limitations due to its reliance on blocks and P2P networks. Despite its allure in addressing cost and TPS issues, it still entails complex asynchronous cache management on user-end.
Based on the logic in the Section Ⅰ, the inscription-based VM points to a new direction: the EVM can be used for off-chain computation, such as in traditional backends, and it enables transactions to be instantaneous. Deploying a smart contract on such platforms grants users a streamlined, robust state machine service. This method simplifies the state machine implementation – it's straightforward, secure, and each component has a clear, defined role. For example, implementing a Mint Asset entitled process in such an environment is incredibly efficient, requiring minimal coding and no in-depth understanding of Mint's internal workings. For enterprises, there is no need to understand the internal logic of Mint, simply capturing the successful event and recording it in a RDBMS builds the application of this complex state machine.
We are convinced that this is a groundbreaking advancement. Imagine the substantial resources and workforce required by PayPal, as well as other banks and financial institutions, to effectively manage their ledgers. Should PayPal decide to build its asset management system utilizing smart contracts for logical workflows on an off-chain inscription-based VM, it's conceivable that about 60% of their backend engineers might become redundant. Such a transformative approach could fundamentally alter the way financial ledgers are managed and maintained, offering a more efficient and streamlined process.
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