Bitcoin NFT marketplace Bioniq eyes lofty goal of alleviating network congestion

A caller Bitcoin nonfungible token (NFT) marketplace aims to trim web fees associated with the advent of Bitcoin Ordinals inscriptions by tapping into the Internet Computer Protocol (ICP).

Developed disconnected the backmost of the creation of Bitcoin Ordinals successful aboriginal 2023, Bioniq operates connected the ICP and taps into its autochthonal Bitcoin integration to powerfulness the commercialized of Bitcoin-based Ordinals inscriptions.

Speaking to Cointelegraph connected the eve of the platform’s launch, Bioniq CEO and co-founder Bob Bodily said the task has been successful improvement since February 2023. The squad has built a marketplace featuring Ordinals astute contracts auctions connected the ICP, a implicit cross-chain wallet betwixt Bitcoin and the ICP, arsenic good arsenic an inscription tool.

“It had lone been 2 weeks aft Casey Rodarmor released Ord 0.4.0, and I knew Ordinals were going to beryllium perfectly massive.”

The Bioniq squad highlighted the maturation successful the marketplace capitalization of BRC-20 tokens since their inception successful Jan. 2023. The marketplace headdress present exceeds $3 billion, with implicit 42.6 cardinal Ordinals minted to date. This has straight affected Bitcoin web congestion, starring to a spike successful Bitcoin (BTC) transaction fees past seen since 2021.

Bitcoin transaction fees showed important spikes successful 2023 pursuing the advent of Bitcoin Ordinals and BRC-20 tokens. Source: Blockchain.com

Bioniq’s level features a astute wallet for users to negociate backstage keys utilizing Web3Auth. This allows users to log into the level utilizing accepted Web2 Google accounts portion maintaining noncustodial power of their wallets and assets.

The level besides uses partially signed Bitcoin transactions (PSBTs) done the ICP’s Bitcoin web integration. This unlocks astute declaration capabilities for Bitcoin, removing the request for users to usage centralized cross-chain bridges.

ICP is simply a “fantastic Bitcoin sidechain”

Building connected ICP besides allows Bioniq to assertion transaction finality times beneath 2 seconds, arsenic good arsenic zero state oregon web fees. Its architecture provides optimized retention costs, averaging astir $5 per gigabyte of information stored annually.

Bodily added that Toniq, the workplace down Bioniq, has been processing connected the ICP since May 2021 and has extended acquisition gathering astute declaration wallets, marketplaces, NFT launchpads and collateralized NFT lending protocols:

“ICP is simply a fantastic Bitcoin sidechain close present due to the fact that it has fantastic Bitcoin primitives astatine the protocol layer.”

Bodily explains that ICP operates a Bitcoin airy node moving afloat on-chain, which facilitates speechmaking the Bitcoin blockchain via autochthonal astute declaration calls. The ICP besides has a threshold integer signature algorithm, known arsenic an Elliptic Curve Digital Signature Algorithm. The implementation allows ICP astute contracts to motion layer-1 Bitcoin transactions and broadcast them to the mempool.

“These protocol primitives besides enabled america to physique an Ordinals wrapper wholly astatine the exertion layer; we didn’t person to interaction the statement furniture of the protocol astatine all. So it is precise accelerated to physique Bitcoin tech connected ICP close now,” Bodily added.

Bitcoin users and spot assumptions

Cointelegraph besides inquired whether Bioniq’s wrapping process could beryllium a imaginable obstruction to introduction for users. Bodily admits that portion the process is mostly automated by the Bioniq wallet and lone requires BTC, determination are 2 considerations that are pertinent for much discerning users.

“Wrapping requires a Bitcoin transaction. This means you person to wage successful bid to wrap. This is simply a important barrier. One mode we are addressing the occupation is by integrating unfastened Nostr PSBT listings into Bioniq,” Bodily explained.

This integration means that PSBT listings stored connected Nostr done decentralized Ordinals marketplaces OpenOrdex oregon Deezy Place volition beryllium accessible connected Bioniq. He added that it removes the request to wrapper Bitcoin transactions, arsenic users could database straight connected Bioniq utilizing unfastened PSBTs.

Perhaps much importantly, Bodily explained that the wrapping process requires “trust assumptions” connected some protocols:

“Wrapping implicit to ICP means successful summation to trusting Bitcoin, you are present trusting the Internet Computer Protocol. Some Bitcoin users won’t privation the counterparty hazard of bridging assets to different chain.”

Bodily adds that Bioniq is focusing connected processing idiosyncratic acquisition up of inheriting Bitcoin’s security, which is ensured by the finality of layer-1 transactions. However, helium envisions a “nice decentralization path” for applications similar Bioniq.

This would impact the improvement from being built connected a sidechain with further spot assumptions to “becoming a Bitcoin sovereign rollup connected ICP that is spot minimized.” The last measurement would spot Bioniq becoming a Bitcoin zero-knowledge rollup (ZK-rollup) connected the ICP with nary further spot assumptions, inheriting the afloat information and decentralization of Bitcoin.

“ICP fits perfectly into this program arsenic good due to the fact that ICP tin supply a replicated execution situation (decentralized sequencer) oregon validium (extra off-Bitcoin retention for rollups).”

Banking connected Bitcoin’s worth proposition

A fig of NFT marketplaces already connection Bitcoin Ordinals auctions and trading, which begs the question of what an exclusively Ordinals level volition bring to the ecosystem.

Bodily believes that existing offerings that featured “softer pivots” to Ordinals connected their platforms were hamstrung by confusing idiosyncratic experiences. Developing a “dedicated Bitcoin Ordinals marketplace, built for Bitcoin users natively” hinges connected processing a autochthonal cross-chain, BTC-ICP wallet.

In addition, Bitcoin’s unchallenged presumption arsenic the preeminent and largest cryptocurrency by marketplace headdress remains different drawcard for the continued involvement successful Bitcoin NFTs into the future.

“If you look astatine the numbers, 89% of radical successful the satellite person heard astir Bitcoin, Bitcoin accounts for astir 50% of the full crypto marketplace cap, and Ordinals person done implicit $500 cardinal successful measurement this twelvemonth — truthful determination is monolithic demand.”

Bioniq joins the likes of Ordinals Market arsenic a Bitcoin-only Ordinals marketplace. Gamma is different Ordinals marketplace that straight mints to Bitcoin’s layer-1 chain. Ordswap was an aboriginal Ordinals marketplace that has since closed down aft losing power of its website to hackers. Meanwhile, multichain platforms similar Magic Eden prominently database Bitcoin Ordinals NFTs.

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