Investing in Web 3.0: How Bitcoin is Evolving into a Multi-Asset Network

Exploring the Possibilities of Web 3.0 and AI

For more than a decade, Bitcoin (BTC) has been primarily perceived as a form of peer-to-peer digital cash and a store of value. However, the narrative is changing.

Since the start of 2023, the Bitcoin ecosystem has been abuzz with discussion about the potential of the world’s leading blockchain to store information beyond its traditional use cases.

If you have been out of the loop, here is a quick overview of the developments in the realm of AI image generators, AI music, AI to write articles, decentralization in web 3.0, and more.

The Evolution of Ordinals Protocol

In January 2023, developer Casey Rodamor introduced the Ordinals protocol to the world, a technology that allows users to permanently inscribe any file into the Bitcoin blockchain. This was not the first method created for such an action, but it quickly gained traction, and soon nonfungible token (NFT) collections, music, video games, journalistic articles, and even WikiLeaks records were stored in an eternal and immutable manner on the world’s largest decentralized network.

This sparked experiments, innovation, and the idea of the Bitcoin network as a vast decentralized database. Despite being less than a year old, the Ordinals protocol has been evolving rapidly to become more efficient and to enable more use cases, such as AI image generation, AI music, AI-written articles, and Web 3.0 decentralization.

Recursive Inscriptions: A Technique to Bypass the 4-Megabyte Storage Limit

To overcome the 4-megabyte storage limit per block in the Bitcoin blockchain, recursive inscriptions have been developed as a noteworthy enhancement. This technique allows users to store larger data on the blockchain. As an example, an entire article from Cointelegraph was inscribed on the blockchain using recursive inscription.

The image below illustrates the process, which required eight inscriptions to achieve the desired result. The total file size was 5.22 kilobytes, much smaller than what could have been achieved in a single step. Seven of the inscriptions were images from the article, each stored individually in a satoshi through the Ordinals protocol. The eighth inscription contained a code that contained the article’s text and issued requests to retrieve the images from the other satoshis.

This process enabled the complete article to be inscribed on the Bitcoin blockchain, showcasing the potential of recursive inscriptions in decentralization and web 3.0.

The Innovations of Web 3.0

Leonidas, a developer within the Ordinals community, took to Twitter to offer a deeper insight on the matter, writing: “With just this, a world of possibilities can be contemplated and reimagined. After all, the ability to use the world’s leading blockchain as an immutable, shared, uncensored data storage is huge.”

But the innovations don’t stop there! AI image generators, AI music, and AI to write articles have all been developed to help explore the possibilities of Web 3.0. Articles about AI, written by AI, are becoming increasingly popular.

In October, Lightning Labs announced the first mainnet release of Taproot Assets (TARO), further enhancing the Bitcoin blockchain as a multiasset network. This is just the beginning of decentralized Web 3.0, and many are wondering how to invest in it.

The Ordinals Protocol and TARO

The enthusiasm generated by the Ordinals protocol and its ability to facilitate TARO’s success has arrived at an ideal moment. This protocol has given users and builders a wider outlook on Bitcoin, allowing them to view it as an array of multiple assets.

The introduction of Ordinals assets — with a large number of transactions — has caused Binance to integrate with Lightning. The combination of low costs, decentralization and quick network settlement makes trading other coins and assets through Taproot Assets very appealing.

In terms of the usage of TARO, one of the most mentioned applications is the issuance of stablecoins on the Bitcoin blockchain.

The Multiasset Orange Network

The paradigm shift is massive, as it opens the door for Bitcoin to move from being a tradable asset to being the medium through which trades are conducted.

This development will give developers the ability to bring successful use cases from other chains to Bitcoin. Some even joke that all other chains are just Bitcoin’s testnets – does it all lead back to Bitcoin?

In conclusion, we can say that we are at the start of a new Bitcoin era – the era of the multiasset orange network.

The multiasset orange network will bring a variety of applications such as AI image generators, AI music, and AI to write articles. It will also enable people to invest in Web 3.0 and decentralization in Web 3.0.

The Impact of Web 3.0 on Cryptographic Trading Cards

With the advent of Web 3.0, new applications such as AI image generators, AI music, and AI to write articles have the potential to draw in users who may not have initially found value in Bitcoin as a store of value. These applications have the potential to attract and retain more developers who may be interested in exploring these new protocols.

One example of a potential use of Web 3.0 is the optimization of Ordinals, which can expand the possibilities of what can be done with digital cash. Hal Finney, a prominent cypherpunk and the first person to receive a transaction from Bitcoin creator Satoshi Nakamoto, wrote in a 1993 post on Compuserve: “Giving a little more thought to the idea of buying and selling digital cash, I thought of a way to present it. We’re buying and selling cryptographic trading cards.”

As we explore how to invest in Web 3.0, decentralization will play an important role in the development of these cryptographic trading cards. Finney knew, and now you know too.