The Free Mint concept has an economic flaw for certain assets on the BSV blockchain, as there exists no artificial block size, no cannibalistic rising fee markets, or arbitrary transaction size limits. Take bitmap for example; one could mint out roughly 800,000 bitmaps in a few transactions that would cost less than a nickel on BSV. On BTC, bitmap needed 30 days to mint out due to its limits weirdly, resulting in an organic, hyped blockout with over 21,000 unique holders to date. BTC, crippled as the blockchain may be, still has the most liquidity, so its users are incentivized to find a way.
Imagine a future with Ordinals Proof-of-Work. Proof-of-Work collides atomically with Ordinals. Energetic investment echoes in binary realms. BTC’s power is reflected in BSV. We welcome the dawn of OP.
[1/5]— op_enheimer (@op_enheimer) July 31, 2023
Simply porting this concept to BSV does not work. The Sats Names and its derived fungible token protocols BRC-20 (BSV-20) have virtually no adoption, likely because of these mismatches in economics. Instead of copying others’ innovations, why don’t we leverage BSV blockchain’s unique capabilities to do something other chains cannot? Re-introduce Proof of Work scripts is one such example, but this time with its rules governing asset creation.
The BoostPOW protocol attempted to use Bitcoin Script to validate proof of work hashing to upvote content but also has no adoption three years after its creation. This is likely because there are not enough satoshis being locked in these scripts, which there is no demand for upvoted content via proof of work.
To mirror the sweet spot of fairness in BTC’s mints in a novel way, only recognize assets mined with sufficient, publicly verifiable work as part of the token protocol. For example, create a fungible token where mints are only valid if they have a certain, sufficient amount of work done in those transactions. Such a requirement will force users to put their devices to work and risk their time to earn the asset instead of copying and pasting some text and paying a few satoshis for the token.
Furthermore, with a 1 satoshi fee, platforms can easily fund the transaction fees, so users without bitcoin can participate without having any satoshi to start.
This is possible with Bitcoin Script fully unlocked, and the BSV blockchain is currently the only UTXO-based chain capable of this validation.
One might ask, isn’t that proof of work token just like Bitcoin? The answer is a resounding yes. $ORDI, Sats Names, and bitmap were all deployed like Bitcoin without a pre-mine, where the one who risked the satoshis first earned the asset. All reflect the Bitcoin ethos, where the first to do the work and mine the block earns the satoshis. Anyone can re(join) the network at will.
What would be the value of the first PoW token deployed atop BSV blockchain? Well, at first, Bitcoin did not have a price, but people still mined it.
Ultimately the market decided Bitcoin is valuable and thus should have a price. The market will do the same with this PoW token concept, and quickly. $ORDI only needed 30 hours to mint out and 60 days to rise in price from $0 to $30.
Ironically, what is evident is that sound concepts such as fair, hard work, public, and open deeply resonate with people, even the “degens” in the “crypto” space. Due to BSV’s speed, 1 satoshi fees, and scalability, speculation and finding product market fit can occur more rapidly on the BSV blockchain than on any other chain.
In this digital age, the market will very quickly accept or reject concepts deployed on chain. Why don’t we back our digital assets and applications with the very concepts that started this entire industry in the first place?
Watch: The only blockchain able to handle speed and volume is BSV
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