A brand new Bitcoin nonfungible token (NFT) marketplace aims to lessen network charges connected using the creation of Bitcoin Ordinals inscriptions by making use of the web Computer Protocol (ICP).
Developed off the rear of the development of Bitcoin Ordinals at the begining of 2023, Bioniq runs using the ICP and taps into its native Bitcoin integration to power the trade of Bitcoin-based Ordinals inscriptions.
Talking with Cointelegraph around the eve from the platform’s launch, Bioniq Chief executive officer and co-founder Bob Bodily stated the work has been around development since Feb 2023. They has generated a marketplace featuring Ordinals smart contracts auctions around the ICP, an entire mix-chain wallet between Bitcoin and also the ICP, plus an inscription tool.
“It had only been two days after Casey Rodarmor released Ord .4., and that i understood Ordinals would be absolutely massive.”
The Bioniq team highlighted the development on the market capital of BRC-20 tokens since their beginning in Jan. 2023. The marketplace cap now exceeds $3 billion, with more than 42.six million Ordinals minted up to now. It has directly affected Bitcoin network congestion, resulting in an increase in Bitcoin (BTC) transaction charges last seen since 2021.
Bioniq’s platform includes a smart wallet for users to handle private keys using Web3Auth. This enables users to sign in to the woking platform using conventional Web2 Google accounts while keeping noncustodial charge of their wallets and assets.
The woking platform also uses partly signed Bitcoin transactions (PSBTs) with the ICP’s Bitcoin network integration. This unlocks smart contract abilities for Bitcoin, removing the requirement for users to make use of centralized mix-chain bridges.
ICP is really a “fantastic Bitcoin sidechain”
Building on ICP also enables Bioniq to assert transaction finality occasions below two seconds, in addition to zero gas or network charges. Its architecture provides enhanced storage costs, averaging around $5 per gigabyte of information stored yearly.
Bodily added that Toniq, the studio behind Bioniq, continues to be developing around the ICP since May 2021 and it has extensive experience building smart contract wallets, marketplaces, NFT launchpads and collateralized NFT lending protocols:
“ICP is an excellent Bitcoin sidechain at this time since it has wonderful Bitcoin primitives in the protocol layer.”
Bodily explains that ICP operates a Bitcoin light node running fully on-chain, which facilitates studying the Bitcoin blockchain via native smart contract calls. The ICP also offers a threshold digital signature formula, known being an Elliptic Curve Digital Signature Formula. The implementation enables ICP smart contracts to sign layer-1 Bitcoin transactions and broadcast these to the mempool.
“These protocol primitives also enabled us to construct an Ordinals wrapper entirely in the application layer we didn’t need to touch the consensus layer from the protocol whatsoever. So it’s extremely fast to construct Bitcoin tech on ICP at this time,” Bodily added.
Bitcoin users and trust assumptions
Cointelegraph also asked whether Bioniq’s wrapping process might be a potential barrier to entry for users. Bodily admits that although the operation is largely automated through the Bioniq wallet and just requires BTC, there’s two factors which are pertinent for additional discerning users.
“Wrapping needs a Bitcoin transaction. What this means is you spend to be able to wrap. This can be a significant barrier. One of the ways we’re addressing the issue is by integrating open Nostr PSBT listings into Bioniq,” Bodily described.
This integration implies that PSBT listings stored on Nostr through decentralized Ordinals marketplaces OpenOrdex or Deezy Place is going to be accessible on Bioniq. He added it removes the necessity to wrap Bitcoin transactions, as users could list on Bioniq using open PSBTs.
Possibly more to the point, Bodily described the wrapping process requires “trust assumptions” on protocols:
“Wrapping to ICP means additionally to having faith in Bitcoin, after you are having faith in the web Computer Protocol. Some Bitcoin users won’t want the counterparty chance of bridging assets to a different chain.”
Bodily adds that Bioniq is concentrating on developing consumer experience in front of inheriting Bitcoin’s security, that is ensured through the finality of layer-1 transactions. However, he envisions a “nice decentralization path” for applications like Bioniq.
This could involve the evolution from being built on the sidechain with a lot more trust assumptions to “becoming a Bitcoin sovereign rollup on ICP that’s trust minimized.” The ultimate step would see Bioniq being a Bitcoin zero-understanding rollup (ZK-rollup) around the ICP without any additional trust assumptions, inheriting the entire security and decentralization of Bitcoin.
“ICP fits perfectly into this plan of action too because ICP can offer a replicated execution atmosphere (decentralized sequencer) or validium (extra off-Bitcoin storage for rollups).”
Banking on Bitcoin’s value proposition
Numerous NFT marketplaces already offer Bitcoin Ordinals auctions and buying and selling, which begs the issue of the items an solely Ordinals platform brings towards the ecosystem.
Bodily believes that existing choices that featured “softer pivots” to Ordinals on their own platforms were hamstrung by confusing user encounters. Creating a “dedicated Bitcoin Ordinals marketplace, designed for Bitcoin users natively” relies upon creating a native mix-chain, BTC-ICP wallet.
Additionally, Bitcoin’s unchallenged position because the prominent and largest cryptocurrency by market cap remains another drawcard for that ongoing curiosity about Bitcoin NFTs to return.
“If you consider the figures, 89% of individuals on the planet often hear about Bitcoin, Bitcoin makes up about around 50% from the total crypto market cap, and Ordinals did over $500 million in volume this season — so there’s massive demand.”
Bioniq joins the kind of Ordinals Market like a Bitcoin-only Ordinals marketplace. Gamma is yet another Ordinals marketplace that directly mints to Bitcoin’s layer-1 chain. Ordswap was an earlier Ordinals marketplace which has since closed lower after losing charge of its web site to online hackers. Meanwhile, multichain platforms perfectly Eden conspicuously list Bitcoin Ordinals NFTs.