What role will Bitcoin play in NFT and meta-universe?

Since 2021, with the changes in the global economic and social environment, discussions on the meta universe inside and outside the crypto market have become more heated. In the crypto market, it is undoubtedly GameFi that allows us to feel close to the metaverse. However, whether it is the recent fire of Loot or the GameFi craze triggered by Axie Infinity , the vigorous art circle and sports circle embracing the NFT wave in the first half of this year, or the DeFi Summer that broke out last year, all of the above are indispensable in the meta universe. We don’t seem to see Bitcoin’s missing elements, but Ethereum and its competitors are more active in it.

From a data perspective, according to industry media statistics, 17 of the top 20 NFT projects (including various games, etc.) with the highest NFT sales in the entire network are based on Ethereum, accounting for 85%; ranked top Among the 100 projects, 84 projects are based on Ethereum, accounting for 84%, and most of these Ethereum-based projects currently use ETH for payment. In addition, the remaining NFT market share is allocated by OEC, Solana and other public chain circuit are divided up by rising stars. In the DeFi field, according to statistics, among the 132 DeFi smart contracts included in the thematic section, the number of projects created on the Ethereum network exceeds 70%. In terms of the value of the total locked assets, the advantage of Ethereum It is even more obvious. As of 12:00 on September 6, 2021, the total value of assets locked in DeFi smart contracts across the network was US$141.87 billion, and the value of assets locked in the Ethereum chain alone reached US$128.38 billion, accounting for The ratio exceeds 90.4%.

What role will Bitcoin play in NFT and meta-universe?

Total value of locked assets based on Ethereum’s DeFi smart contract

In the process of looking up the above data, it can be found at a glance that Ethereum is well-deserved among the concept plates included in the meta-universe . Competitors such as OKExChain, Polygon and Fantom have also performed well, but only The leader of the crypto world-Bitcoin is missing.

Will Bitcoin fall behind in the world of the metaverse?

Frankly speaking, starting from the current reality, before discussing the topic of what role Bitcoin will play in the meta-universe, there is another topic that cannot be circumvented, and that is whether Bitcoin will actually enter the universe. The next era of imaginary is out of date? Obviously, this topic will directly hit the multi-dimensional comparison of the pros and cons of many new-generation public chains represented by Bitcoin and Ethereum in terms of scalability, transaction efficiency, and value storage.

First of all, in terms of scalability, Bitcoin is temporarily in a disadvantageous position. Although Vitalik Buterin (Vitalik Buterin) was inspired by Bitcoin to launch the Ethereum project, after several years of continuous development, Ethereum is in The advantages of scalability are already obvious. According to statistics, the number of smart contracts built on the Ethereum network currently exceeds 11,000.

What role will Bitcoin play in NFT and meta-universe?

Ethereum has issued contracts

More importantly, in the past two years, Ethereum-based DeFi and NFT have flourished, and the Ethereum ecosystem has grown. From this point of view, Ethereum is obviously more scalable than Bitcoin. On the one hand, it is reflected in the fact that Ethereum provides more uses including smart contracts. On the other hand, with the advancement of ETH2.0 upgrade, it is expected that Ethereum It will soon switch to the Proof of Stake (PoS) consensus algorithm, which seems to be more environmentally friendly than Bitcoin’s energy-intensive Proof of Work (PoW) protocol.

Secondly, in terms of transaction efficiency, according to data, the current TPS of the Ethereum network is 12.96, which means that it can process nearly 13 transactions per second; while the TPS of the Bitcoin network is 2.41, which can process less than 3 transactions per second. Judging from the total number of transactions processed daily by Bitcoin and Ethereum in recent years, the gap can also be clearly seen.

What role will Bitcoin play in NFT and meta-universe?

Comparison of the total number of transactions processed daily by Bitcoin and Ethereum in recent years

From the statistics of OKLink above , it can be found that since 2021, the average number of transactions processed by Ethereum has been more than 1 million per day, of which the peak has reached 1.78 million; while Bitcoin has hovered between 150,000 and 400,000 most of the time. Among pens, the peak is 446,000 pens. If such transaction efficiency were placed in the original DeFi Summer period, the Bitcoin network will most likely not be able to meet the demand for transactions on the chain. And if you consider the possible efficiency improvement after the Ethereum network is completely transferred to the PoS consensus mechanism after the ETH2.0 upgrade is completed, this gap will undoubtedly be further widened.

So in terms of store of value, can Bitcoin regain a city? The meta-universe is a virtual space mapped from the real Internet world in the future, and the scope of coverage will also expand from pan-entertainment to every corner of the Internet. Therefore, in the future meta-universe, there must be a medium to benchmark the value storage in the real world. As a medium of value storage, it is natural to have a broader consensus foundation and a safer operating mechanism. In this way, Bitcoin is more worth looking forward to.

What role will Bitcoin play in NFT and meta-universe?

Comparison of the total number of addresses and the number of active addresses between Bitcoin and Ethereum

From the statistics given by qkl123 above, the total number of addresses in the Bitcoin network has been 872 million, and the number of active addresses is also 728,700; for comparison, the total number of Ethereum addresses is 26,456,700 and the number of active addresses is 540,000. From a data perspective, Bitcoin has more advantages.

At this point, perhaps we can make a summary of the sub-topics of this section: if Bitcoin is regarded as a comprehensive infrastructure in the meta-universe world, then it obviously does not have enough strength and most public chains such as Ethereum Come to compete; and if it is viewed as an important value storage medium in the meta-universe, then it obviously has greater potential. Therefore, perhaps in the future meta-universe, the existence of Bitcoin will still not be as strong as it is now, but it must be an indispensable and important part, and the status of “digital gold” may be more prominent by then.

What role might Bitcoin play in the metaverse?

Based on the discussion in the previous section, it will be easier to start this topic again. At this time, we can make a simple distinction between Bitcoin and Ethereum and other public chains according to their basic attributes. The first type is Bitcoin, which is more responsible for the storage of value in the meta-universe, similar to the current gold The role in the economy and society; the other type is platform-based infrastructure including Ethereum and OEC, which exist as the cornerstone of many applications such as Web 3.0, DeFi, and NFT.

If you follow this distinction, Bitcoin’s first-mover advantage will likely be further magnified. In the book “Anti-fragility”, author Nasim Taleb introduced the concept of “Lindy Effect” for the first time. Later, in the book “Fractal Geometry of Nature”, the mathematician Mandelbrot used mathematical methods to further summarize the “Lindy effect”: “For things that will die out naturally, each additional day of life will have an expected lifespan. It will be shortened a bit. For things that will not die naturally, each additional day of life may mean a longer expected remaining life.” As far as the crypto market is concerned, Bitcoin, as the crypto asset with the longest issuance time, does not It will naturally die out, and the broadest consensus foundation has been laid for more than ten years. In the future, more and more investors will be attracted to choose to hold Bitcoin. This is unmatched by any encrypted asset.

In addition, from the perspective of technological updates, although Bitcoin’s upgrade frequency is lower than that of Ethereum, it has not stagnated. The Bitcoin Taproot upgrade launched in November this year will greatly enhance Bitcoin’s efficiency, privacy, and network flexibility. Once the effect of the Taproot upgrade is highlighted, it will provide developers with the possibility to build a DeFi ecosystem around the Bitcoin network at the technical level. Of course, whether it can be achieved in the end remains to be seen. However, as far as the current DeFi ecological construction is concerned, Bitcoin is not absent. According to defipulse statistics, as of September 6, 2021, the number of Bitcoins locked in the DeFi smart contract has exceeded 200,000, accounting for the total circulation. Of about 1.1%.

What role will Bitcoin play in NFT and meta-universe?

Imagining the meta universe requires a richer imagination

So far, all of our concepts and scenes of the meta-universe are more based on imagination, although we have given a plain and straightforward definition-the meta-universe is based on the position of most ordinary people. , To think about the origin of human development, explore the ultimate scene of the future society, from the real to the virtual, then from the virtual to complement the real, and finally the process of the virtual and the real. But how to explore? How does reality and imaginary coexist? To give a further answer requires a richer imagination. The same is true for the role that Bitcoin may play in the future meta-universe. Based on what we can currently foresee, Bitcoin will at least become an important store of value in the meta-universe. medium. However, with the development of technology and the advancement of concepts, or the continued increase in the price of encrypted assets such as Bitcoin, it is unknown that Bitcoin has derived a new concept of collectibles similar to the current fragmentation of NFT.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-role-will-bitcoin-play-in-nft-and-meta-universe/
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