Welcome to Hoken Tech

Anyone following the crypto and blockchain landscape may have noticed a sudden increase in transactions on various EVMs, with transaction volumes skyrocketing (even exceeding 200%) in a short period.

The cause of this transaction surge is attributed to a “new” system of writing information on the blockchain, known as Inscription.

Together, let’s explore some details about this system.

Experienced users in the blockchain world may already know that inscriptions are linked to the Bitcoin blockchain. Between the end of December 2022 and the beginning of 2023, some developers decided (figuratively) to use the order of satoshis as a reference point and insert code.

This system of Ordinals (utilizing inscriptions) gained significant traction in recent months, especially in the NFT sector, where individuals began creating NFTs on the Bitcoin blockchain, recording NFT metadata through inscriptions.

It’s worth noting that Ordinals and NFTs on Bitcoin differ from NFTs on various blockchains. Information is written into a satoshi, and there’s no direct link between the information and one’s private key. Additionally, these inscriptions are written on fungible tokens, namely satoshis.

At this point, some might wonder why this system is being used on other blockchains that utilize EVMs to record information that smart contracts already handle, often using IPFS for image storage.

The answer lies in transaction cost efficiency. Inscriptions can contain anything, including code that effectively replaces smart contract code. While a smart contract might cost 10 to process a transaction, inscriptions could cost as little as 1 to achieve the same result.

Let’s delve into how this system works on EVMs. When transferring a cryptocurrency, such as ETH, there’s a small “Venmo notes” field that is typically unused but is used by smart contracts.

With inscriptions, this field is practically utilized to input information (both tokens and NFTs). For NFTs, the link or string of the image in textual format is inserted, and this NFT is identified by the transaction ID.

The first inscription ever done was made in 2016 by Tom Lehman:

As is common in the blockchain world, the code became available, and developers quickly started implementing this system on various blockchains, primarily EVMs.

Through a simple interface, users can create virtually any NFT and token in an alternative, albeit unconventional, manner.

This system has generated a massive number of transactions recently, comparable to an airdrop, causing blocks and significant transaction delays on various blockchains. The transaction numbers on different blockchains are as follows:

Whether one likes projects related to inscriptions or not is irrelevant. It’s a new system for sharing information at a low cost, expanding the NFT and token market due to their cost-effectiveness.

The simplicity and affordability of inscriptions on EVMs will inevitably lead to the emergence of scam projects.

For those interested in creating NFTs correctly and being guided by an Italian team with years of experience, Hoken Tech and its startup are available to meet your needs.