Ethereum inscription: Innovation or regression?

Ethereum inscription ( Ethscriptions ) is a new way to create and share digital artworks on the Ethereum network. It utilizes the calldata of transactions, making it more cost-effective and decentralized than traditional NFTs. Unlike NFTs that rely on specific contracts to store data, Ethereum inscriptions write data directly onto the blockchain.

This concept is inspired by Bitcoin ordinal (Bitcoin Inscriptions), but is comparatively easier to operate. Users can participate without running a full node, and the general public is more familiar with Ethereum wallets.

inscription principle

• Any successful Ethereum transaction, where the input data ( is interpreted as UTF-8), is the only valid data URI that can create an inscription. It supports all valid MIME types.
• Uniqueness refers to the fact that the content has not appeared in previous blocks or in earlier transactions of the same block.
• Transactions containing valid inscription transaction hashes can be regarded as inscription transfers, provided that the sender is the owner of the inscription.

Creation Method

1. Upload images through the official website ( max 96KB ) one-click minting

2. Manual operation process:

   • Convert the image to a Base64 encoded data URI
   • Convert data URI to hexadecimal
   • Send 0 Ether transaction, fill in the above data in the "hexadecimal data" field.

Transfer Method

• Obtain the ID of the inscription to be transferred ( and create the transaction hash )
• Send a 0 ETH transaction to the recipient and fill in the inscription ID in the "hexadecimal" field.

Track Inscription

You can currently check the latest minted inscriptions through the official website or use the indexer for queries. The official indexer has not been open-sourced yet, and users can obtain historical data from BigQuery and real-time data through the Alchemy API.

In addition, community members have built an inscription data dashboard on Dune, which can be used to query relevant information.

Founding Team

The Ethereum inscription protocol was developed by Tom Lehman ( Middlemarch ). Tom is the co-founder and CEO of Genius, a company that previously received $15 million in funding from A16Z.

Latest Developments

The founder of Middlemarch recently announced three important updates:

1. Inscription Number: Displays the creation order, #0 is the genesis inscription uploaded by the founder.

2. Rewrite the indexer: Ensure stable and consistent numbering

3. Double check: The page automatically checks whether the content has been minted to avoid invalid operations.

Ecological Development

After the launch of Ethereum inscriptions, the first project "Ethereum punk" sold out quickly, currently with a floor price of 0.065 ETH on Opensea.

Subsequently, token mechanisms similar to BRC-20 appeared, such as $eths, $gwei, $fomo, etc. These tokens are minted through data in a specific format, but there is currently no standardized token protocol.

Some users also inscribe historically significant information on Ethereum, such as Satoshi Nakamoto's message in the Bitcoin genesis block.

Conclusion

The emergence of Ethereum inscriptions has sparked discussions about whether they represent innovation or regression. Despite Ethereum having a mature smart contract ecosystem, the existence of new things in itself has its rationality. It provides a new mode of expression for the blockchain world, enriches the ecosystem, and offers users more choices and opportunities for participation. Whether as an innovative attempt or a learning experience, Ethereum inscriptions provide us with a new perspective to contemplate the future development of blockchain.