1. Problems of Bitcoin Network

Bitcoin, as the world's first and largest blockchain and cryptocurrency, has very high decentralization and security, but there are still some problems which make Bitcoin hard to accelerate mass adoption.

1.1 Poor Scalability

As a Layer 1 blockchain, Bitcoin has high decentralization and security, but high decentralization leads to low scalability, slow block generation, and high latency. A good Bitcoin L2 is needed to solve the scalability problem.

1.2 No Turing Complete Virtual Machine

Bitcoin transaction is based on Bitcoin Script, which is a stack-based programming language for locking and unlocking transactions. Bitcoin does not support the Turing Complete virtual machine, which has brought a certain degree of hindrance to the development of Bitcoin ecosystem. The prosperous ecosystem projects on Ethereum are brought by virtual machine and smart contract.

1.3 High Transaction Fee

The ecosystem prosperity brought by Bitcoin protocols such as BRC-20 and the continuous rising of BTC prices have pushed up the transaction fee on Bitcoin network, and provided resistance to further expansion of Bitcoin ecosystem.

1.4 Centralization Risk of new Bitcoin Protocols

The new Bitcoin protocols such as Ordinals and BRC-20 have brought the prosperity of Bitcoin ecosystem and brought unlimited imagination space to Bitcoin ecosystem. However, the Bitcoin network does not do any verification of the new protocols, but only stores them. Also, the centralized server off the Bitcoin network is needed to complete the loop of new protocols. For example, the mechanism of Ordinals theory to number Satoshis is running on a centralized server according to the fixed rules, and the Bitcoin network does not store or even know any relevant information about Ordinals. Although the BRC-20 protocol inscribes the content on Bitcoin network, its correctness has not been verified by Bitcoin network, so it also requires a centralized server off Bitcoin to do the computation and index. The risks brought by centralized server are self-evident. Different application providers use their own logic to compute for protocol services. The possibility of censorship, bugs, delays and other problems is very high, and it also violates the decentralized principles of blockchain and Web3.