1. Core technological mechanisms of the STAMP protocol
1. Data storage methods
The STAMP protocol achieves permanent storage by directly writing data into Bitcoin transaction data (rather than witness data). Unlike the Ordinals protocol (which stores data in witness data, risking being pruned by nodes), STAMP data cannot be removed, ensuring the durability and immutability of on-chain assets.
2. Innovations based on the Counterparty protocol
STAMP evolved from the Counterparty protocol, embedding specific formatted encoded data (such as Base64 strings) within Bitcoin transactions through the UTXO model, and must meet the prefix rule of 'STAMP:'. The minting process must be completed through a Counterparty transaction to ensure synchronization and immutability with the Bitcoin blockchain.
3. Supported asset types
- SRC-20 tokens: A fungible token standard similar to BRC-20 but achieves higher security through transaction data storage.
Bitcoin Stamp: Non-fungible asset (NFT), supporting semi-fungible characteristics (similar to ERC-1155), can issue single or multiple versions, expanding the use cases of NFTs.
4. Protocol rules
Image data must be in JPG, PNG, GIF, or WebP format and Base64 encoded.
Each asset can only create one STAMP, and subsequent updates will not be indexed by the official, ensuring the uniqueness of the asset.
2. Technical advantages of STAMP
1. Enhanced security and decentralization
Data is stored in the Bitcoin main chain transaction data, without relying on the retention policies of node operators, avoiding the pruning risk of Ordinals inscriptions, thus providing higher security.
2. Flexibility and composability
Supporting multiple versions of NFT issuance and recursive combinations, for example, generating complex assets (such as game items or animations) through combinations of multiple inscriptions, similar to Ethereum's ERC-1155 standard, enhancing the scalability of assets.
3. Low cost and high efficiency
Achieve batch minting through proxy platforms (such as OpenStamp) to lower user operation thresholds and miner fee costs. Some platforms use instant transaction pool detection technology to accelerate the minting process.
3. Challenges and limitations
1. Mainnet technical limitations
Bitcoin itself lacks Turing completeness for smart contracts, and the functional expansion of the STAMP protocol is limited by the simple logic of Bitcoin scripts, making it difficult to support complex business scenarios (such as DeFi lending or derivatives).
2. Ecological construction lagging behind
Although STAMP theoretically has better security than Ordinals, its application ecosystem is developing slowly, with insufficient community activity. Currently, there is a lack of innovative applications, mainly focusing on asset issuance, failing to form diversified use cases.
3. Storage costs and scalability
Writing large amounts of data into Bitcoin transactions may increase the burden on blocks, potentially facing rising storage costs in the long term. At the same time, the complexity of the protocol still poses certain barriers for ordinary users and developers.
4. Ecological status and development direction
1. Current application scenarios
Asset issuance: SRC-20 tokens and NFTs are the main applications, with significant market value growth for assets like Blue Box.
Layer2 integration: Some projects (like Merlin Chain) are trying to bridge STAMP assets to Bitcoin's second-layer network to improve transaction efficiency and expand use cases.
2. Future potential
Combining Layer2 solutions: Reducing mainnet pressure through ZK-Rollup or state channel technology, while enhancing smart contract functionality.
Community-driven innovation: Drawing on the composability experience of the BRC-420 protocol, exploring recursive asset applications in scenarios such as games and the metaverse.
5. Summary
The STAMP protocol opens up a path for high-security asset issuance within the Bitcoin ecosystem through its permanent storage mechanism for on-chain transaction data. However, its development is limited by the functional deficiencies of the Bitcoin mainnet and insufficient ecological innovation. Future progress will depend on Layer2 expansion, community collaboration, and technological breakthroughs to achieve a transition from 'asset issuance' to 'diversified applications'. At the current stage, STAMP is more suitable as a long-term value storage technology solution, with promising future development prospects.