In today's Bitcoin ecosystem, most protocols have solved the problem of asset issuance, but lack paradigm innovation.
In fact, paradigm innovations have already existed or are quietly brewing, but the market often cannot discover them.
Imagine a situation. If a new thing appears, it claims to be a "paradigm innovation" and at the same time issues a relatively fair asset that is accessible to everyone. Then people will rush to it - it's new and looks awesome, so they will "buy it first and talk later." After buying it, these people will promote this asset and make more people believe that it is the so-called "paradigm innovation."
If something appears, but it doesn't bring new assets with it, and if there is no group of people buying new shares, no one will CX others and say that this thing is a paradigm innovation.
So if we put aside asset issuance, how do we define true paradigm innovation? Good question.
True paradigm innovation will not cause short-term FOMO sentiment in the market, but will survive in a cyclical state.
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Back to Atomicals, our community always says that AVM is a paradigm innovation, and I certainly believe it. But a friend asked me, if AVM is really awesome, shouldn’t ARC20 assets rise before AVM appears? Why do they keep falling when the community has generally good expectations?
In fact, the market has already told us that the public will not pay for AVM for the time being, whether they are holders or outsiders.
If we change the angle, if AVM is a new channel for issuing assets, and a leading token, MINT, will appear after AVM goes online, then the whole network will definitely be looking forward to it today, ready to go, with tutorials everywhere, and everyone going to learn. Everyone who is prepared will be full of confidence in the prospects of AVM.
Yes, in fact, the so-called paradigm innovation, even if it is really a paradigm innovation, will not be a "money printing machine" type of innovation. Only by issuing new assets and letting everyone buy new things will there be a "money printing effect". Everyone knows that the Bitcoin ecosystem is a big market, but everyone only pays for asset issuance. Who will pay for the real application ecosystem?
However, have you noticed that the money printing effect in the circle is getting worse and worse? This is a good thing. Those who run around and pay for the issuance of various new assets will find that not all new assets are good assets at a certain stage.
In the second half of last year, there were a bunch of new agreements, and any one of them could earn you 100 times the bottom line. At least I personally got more than 100 times the bottom line from two projects. At that time, as long as you were diligent and discovered more new projects, even if you missed the ones at the beginning or middle of the year, there would still be another wave at the end of the year. But this year, the situation has changed, and the benefits of investing in new projects are far less than before.
When a certain singularity is reached, all losses are made and all profits are made, and the market continues to return to the combination of "mainstream currency + altcoin". When Bitcoin rises, other altcoins will follow suit, and those that are promising, applicable, and valuable will rise a little more.
However, in such a market situation, it may be difficult to see a large number of myths of hundreds or thousands of times the value.
In this circle, when you are sure that the bull market is coming, it is difficult to hold U. You have to buy something to keep up with the bull market. At this time, "useful" coins will begin to be discovered.
One of the fundamental reasons for the “mutually unconnected” Bitcoin ecosystem is that there is nothing that everyone agrees is useful.
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The Bitcoin ecosystem, apart from innovation in asset issuance, must also require innovation in the application layer.
Ecosystem, this word may remind people of everything that already exists on Ethereum - various Fi: DeFi, SocialFi, GameFi, various independent concepts: DAO, DID, SBT, storage, L2, XXX to Earn, various module tokens: Meme, fans, PoW, AI...
Back to Atomicals, we say that AVM is a "paradigm innovation" precisely because it will bring everything on Ethereum.
There is no doubt that AVM will come out, and there is no doubt that AVM can achieve a certain degree of programmability.
Last time, a friend asked me in the comment section, is there any way to implement DeFi in BTC L1? I responded briefly with this sentence:
“AVM expresses the binary of 0 and 1 through coloring and de-coloring, thereby achieving programmability. One of the application angles that can be achieved is DeFi. Today I just saw a new project preparing in this regard @spiralismxyz, and their official website already has the words swap and stake. This is why Atomicals is of great significance to the development of BTC’s first layer.”
As a result, I discovered that many people don’t know that AVM will lead Bitcoin to a broad “application ecosystem”.
However, even if all these applications are realized, I don’t think the market will pay for them right away - because it is difficult to gather a group of new people and new money in a short period of time, and it is naturally difficult to satisfy the public’s strong desire to "change places to make quick money."
What is the significance of such new applications for ARC20 assets? I would like to use the word I mentioned last time - mainstreaming. Whether something is valuable is one thing, and whether the public knows it, uses it, and cannot live without it is another.
The latter actually has a profound impact on the former. Price changes are very fast. If everyone knows that something is good all of a sudden, the price will change rapidly. But if everyone gradually knows its goodness, the price may not fluctuate much, but there will be many sudden positive "seeds" brewing behind it. These seeds are extremely important to the survival of a coin.
Let's take the most common topic of "listing on an exchange" as an example. Why would a purely hyped coin be listed on Binance? Only something that Binance believes can survive and survive rounds of bull markets will be listed on Binance. The latter is based on those seeds (whether the public knows it, whether they are using it, and whether they can't live without it).
Things like AVM are seeds - whether this seed can achieve "mainstreamization" is unclear today, which is also a reason why the public does not buy it.
We need time.
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No one is willing to take over from each other. At this time, it is not important who takes over, who rises and who falls. What is important is who can survive for a while, who is truly useful, who will have a lasting benefit to Bitcoin, who will be recognized by the Bitcoin community and pushed into the mainstream of Bitcoin applications.
When true paradigm innovation occurs, people will not realize it immediately. Only when the ecosystem of this new paradigm prospers, more applications appear, more users flock in, and even when the next step of the entire ecosystem development cannot be separated from its application assistance, will people realize that it is a paradigm innovation.
Atomicals is an ecosystem that I deeply understand and am building, and I have a vested interest in it, so I will tell people that it is a paradigm innovation in my mind. But in places that I cannot see, I believe that the entire Bitcoin ecosystem is already brewing a lot of deep paradigm innovations that "cannot make people make quick money in the short term."
In terms of the general direction, we should fully support the concept of the entire "Bitcoin ecosystem".
(Originally written by Leaper from Quark Community on 2024.04.23)
