🅱️Bit Native Economics Playbook
Initiating a Thought Enlightenment Movement for Bitcoin's Native Narrative
In the past year of 2023, the Ordinals theory and protocol, born out of two technological innovations, Segregated Witness (SegWit) and the Taproot upgrade, unexpectedly propelled Bitcoin, known for its strongest decentralized consensus, to transcend its singular narrative as a 'store of value'. The Ordinals Protocol, along with theories, protocols, token standards, and projects such as BRC20, Runes, Atomical Protocol, Digital Matters Theory, Non-Arbitrary Token, Bitmap, Bitman, and Bitlottery - all of which are either based on or inspired by it - are emerging in abundance. These developments are laying the cornerstone for a decentralized value network in a future that is increasingly digital and intelligent. This article attempts to build on the pioneering explorations and practices of the aforementioned, advancing a new native narrative for Bitcoin and initiating a movement of thought enlightenment.
This is not a project, but merely a study on Bitcoin's native narrative.
What is Bit Economy
The "Bit Economy" refers to economic activities involving the production, trading, and consumption of elements and products based on 'bits' (the smallest unit of data storage in computing, represented by 0 or 1, with one bit being either 0 or 1). This novel economic behavior and form differs fundamentally from the traditional economy, which is established on the basis of physical atomic products and transactions.
A bit has no color, size, or weight, and it can travel at the speed of light. It is the smallest atomic element in the DNA of information.
—— This definition of bits is provided by Nicholas Negroponte in his work "Being Digital.",1995
An apparatus capable of maintaining two stable states embodies a storage capacity of one bit of information.
—— This concept of the 'bit' was introduced by Claude Elwood Shannon in his foundational work on information theory, "The Mathematical Theory of Communication.",1948
Applying the Native Economics to Bitcoin
The Bit Native Economics, as elucidated in this article, specifically refers to economic and financial activities based on the Bitcoin blockchain. These activities utilize Bitcoin's native elements like Blocks, Satoshis (Sats), Bit, Proof of Work (PoW), and Unspent Transaction Outputs (UTXO) for digital production, trading, and consumption.
The introduction of the Bit Native Economics provides a comprehensive perspective and a high-dimensional narrative logic for crypto builders engaged in Bit Native Economics activities. The core of the Bit Native Economics is centered around native narratives such as bits and block elements, while the uncritical adoption of smart contracts and Ethereum Virtual Machine (EVM) dogmatism lacks native authenticity in the Bitcoin ecosystem. Shifting from the "Code is Law" approach to "Block as Ledger" aligns more with Bitcoin's minimalist philosophy, emphasizing the blockchain’s role as a fundamental ledger rather than just a platform for code execution.
Existing Examples that follow the Block as Ledger Approach
$NAT based on Blocks - Utilizing the 'Bits' field value in Bitcoin block data as the basis for its issuance volume, $NAT pioneered the issuance protocol for Non-Arbitrary Tokens
Bitmap based on Blocks - Bitmap uses Bitcoin block's BlockID as its name and generates terrain and environments based on Bitcoin block data, pioneering a non-arbitrary model for land supply in the metaverse.
Bitman based on Blocks - Bitman takes the BlockID of a Bitcoin block as its name and uses Bitcoin block data as the basis for generating Bitman avatars, creating a non-arbitrary model for Avatar identity generation rules.
Numerous Theories and Practices to Lay the Foundation for the Bit Native Economics
Theories, protocols, token standards, and projects such as Ordinals Protocol, BRC20, Runes, Atomical Protocol, DMT (Digital Matter Theory), NAT (Non-Arbitrary Token), Bitmap, Bitman, and Bitlottery have pioneered new methods of deploying native applications on the Bitcoin blockchain.
🔴Ordinals2️⃣BRC20🔯Runes⚛️ARC20#️⃣DMT, NAT & $NAT🌐Bitmap🦸♂️Bitman👾BitmonThe Elements of the Bit Native Economics
The core elements constituting the Bit Native Economics include Block, Data, Sats (Satoshis), Bit, UTXO (Unspent Transaction Output), and PoW (Proof of Work). For instance, the Ordinals Protocol leverages Sats for content inscription, Runes utilizes UTXO, $NAT, Bitmap, and Bitman employ Block Data, RSIC issue tokens block-by-block using Bitcoin block data, and the Atomical Protocol uses the PoW mechanism for token release.
🧬Element One: Block💎Element Two: Sats🔀Element Three: UTXO⚒️Element Four: PoW🔟Element Five:BIT🧮Element Six:DATA
The Evolution of Token Issuance Methods in the Bit Native Economics
The history of blockchain development is a narrative of the evolution of token issuance methods. As the financial core of the Bit Native Economics, understanding the laws of token issuance will facilitate the stable and sustainable development of the ecosystem.
More Use Cases
⛽Financial Strategy：BlockFi🍬Airdrop Strategy：Blockdrop🎟️Lottery Strategy：Bitlottery🪙Token Strategy：$BITNote：
This whitepaper is a version 0.1 draft requesting the comments from community. We extend our gratitude to the creators, founders, and communities of theories, protocols, token standards, and projects such as Ordinals Protocol, BRC20, Runes, Atomical Protocol, DMT, NAT, Bitmap, Bitman, and Bitlottery. Their explorations have enabled the Bit Economy to take root in a rich and vibrant practical context, initiating an intellectual experiment and meme narrative in the Bit Economy. Its success depends on community consensus and collaboration. We hope to continuously enrich the Bit Economy's theoretical framework and practical examples in collaboration with crypto builders and communities who believe in a decentralized future, thereby advancing a new native narrative and thought enlightenment movement for Bitcoin.
Friendly Reminder: The Bit Native Economics and the projects mentioned do not constitute specific investment advice and are solely objects of theoretical research. Do Your Own Research!
By: @NavigatorLabs and @CryptoKitchen23
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