The team behind OmniBOLT announced work on integrating BRC-20 tokens into Lightning Network (LN) “for faster and more efficient transactions.”
? Big news! #OmniBOLT plans to support the circulation of #BRC20 tokens on the #LightningNetwork! ⚡️?
This will enable faster, more efficient transactions, and unleash new possibilities for BRC20 #Tokens
? Keep an eye out for updates! #Crypto #BRC20 #Layer2 #blockchain pic.twitter.com/KPlApA6CKO
— OmniBOLT (@omni_bolt) May 9, 2023
The OmniBOLT project is developing Synonym Software. It was founded by the issuer of the stablecoin Tether (USDT) — Tether Holdings Limited. The project is a launched LN protocol built on Omni’s solution for Bitcoin.
The hype around BRC-20 tokens in recent weeks has driven their market capitalization to $650 million and a jump in average fees on the Bitcoin network to levels last seen in July 2021 ($7).
Researcher Eric Wall attributed the dynamics to the specifics of BRC-20 token issuance. He noted that to access UniSat, the leading marketplace in the BRC20 segment, you need to issue 20 “inscriptions”. According to Wall, these transactions “clog” the Bitcoin blockchain, triggering a rise in transaction fees.
in order to buy 1 brc-20 with unisat wallet
you first need to make 20 mints (inscriptions)
these mints clog the chain, fill the charts with more ordinal % and make tx fees go up
alerting more people into the phenomenon, making them each mint 20 more brc-20s to buy 1 brc-20
— Eric Wall ?♂️ Taproot Wizard #2 (@ercwl) May 6, 2023
Twitter user Ignas estimated the cost of these 20 transactions — around $430.
“This is the price you pay to be an early adopter,” he noted.
4/7 So, it costs $430USD to make 20 mints on UniSat.
That’s the price you pay for being an early adopter.
And it’s indeed early: BRC-20s started as an experiment by @domodata in March. pic.twitter.com/Uk7nMLvpPs
— Ignas | DeFi Research (@DefiIgnas) May 8, 2023
In his words, users still join the game because prices of many coins are rising.
“It’s exciting to try and learn something new. The hype has increased miners’ fees, boosting Bitcoin’s security. However, the community is not of one mind on this count,” concluded Ignas.
7/7 Overall, it’s exciting to try out & learn something new.
It also increases fees earned by Bitcoin miners, so it should make Bitcoin blockchain more secure.
However, the Bitcoin community remains divided on this issue.
— Ignas | DeFi Research (@DefiIgnas) May 8, 2023
As reported in April, the PEPE token rose tenfold, turning some holders of the coin into millionaires.