After Ordinals, how does the Ethereum inscription protocol Eth_ions reshape the form of NFT assets?

With the development of the encryption market, the NFT track has gradually formed its unique market. **However, under the continued influence of the crypto bear market, the development of the NFT track this year is full of ups and downs and challenges. **According to NFTGO data, as of August 7, compared with last year, the NFT market value totaled approximately US$5.64 billion, a drop of over 46.92% in the past year; the total transaction volume was US$9.54 billion, a drop of over 69.69%; traders Over 1.32 million, a drop of 27.86%. Therefore, from the perspective of data latitude, the market value of NFT has shrunk, and popularity and funds are constantly being lost.

Data source: NFTGO

In fact, Although NFT projects such as BAYC (Bored Ape Yacht Club) and Cryptopunks have generated millions of dollars in transactions, which once drove the NFT frenzy, the development of the NFT track has been controversial. For example, some people think that because NFT itself has no value, NFT based on "value recognition" is more of a hype gimmick; or, most NFTs are currently stored in centralized servers such as AWS, and do not really exist on the chain. Holders may need to deal with project parties that are suddenly offline, ambiguous copyrights, and even NFTs are stolen but have nowhere to appeal. But it is undeniable that the development of any emerging field is not achieved overnight, and these doubts are also the driving force for the continuous development and innovation of NFT.

Back at the beginning of this year, Casey Rodarmor released the Bitcoin Ordinals protocol. The protocol gave birth to the first Bitcoin by allowing users to record different types of metadata (images, videos, PDFs, etc.) on satoshis, which could create and store Bitcoin NFTs directly on the Bitcoin network Network NFT**. Currently, according to Dune data, the number of Inions cast using Ordinals has exceeded 12 million within half a year.

With this new trend of NFT narrative, Recently, the Ethereum inscription protocol Ethions has become popular in the encryption community. The following will introduce the advantages, challenges and opportunities of its development starting from the operation process of Ethions.

Know Ethereum Inscription Ethions

On June 17, Ethions, an Ethereum inscription developed by Genius.com co-founder and former CEO Tom Lehman, was officially launched. **This is a new protocol for creating and sharing digital collectibles on Ethereum using transaction call data. **

Ethions Operation Process

Ethions uses the Ethereum blockchain to store the ownership information of each digital collection, but the file size cannot exceed 96KB, and the protocol currently only supports images, but the creator of Ethions said it will support various types of files in the future.

• Create Inscription

A successful transaction on the Ethereum network will create an Ethion inscription if the input data is a valid data URI. In this process, Ethions takes advantage of a function called "Calldata", which is data stored in Ethereum smart contracts, it writes data in Ethereum's Calldata, which is cheaper than using smart contract storage And more decentralized.

Where URI refers to Distinct Data Uniform Resource Identifier. To ensure uniqueness and uniqueness, each URI is carefully crafted such that there is no Ethion with the same content in the previous block or earlier transactions in the same block. This clever approach guarantees that no other Ethions share the same information.

When someone creates an Ethion, they are considered the creator of that Ethion. The person who receives the transaction is called the initial owner.

• Transfer Inscription

**Owners can also transfer their Ethion to others. **Find the ID of the Ethion you want to transfer, i.e. the transaction hash that created the Ethion. Write the Ethion ID in the "hex" field to send the transaction to the receiver. When this transaction is processed, the person who accepts the transaction becomes the new owner.

• Tracking Inscription

Currently, users can view all created Ethions through the ethions.com website launched by Tom Lehman, which also provides tools for creating Ethions on the Ethereum blockchain.

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Ethions and Ordinals similarities and differences

The inscription model on Ethereum and Bitcoin ordinals is likely to bring a new trend to the NFT field. The creator of Ethions once wrote that it can be compared with Bitcoin "Ordinals Inions". What the two protocols have in common is that they define assets in the same way, that is, they also use Ethereum as a database, and only write the data defining assets on Ethereum instead of using smart contracts to define . The differences between the two are as follows:

• **Platforms vary. **Ethions run on the Ethereum network, while Bitcoin Ordinals run on the Bitcoin ecosystem. This platform distinction will subsequently impact every aspect of its functionality and features.
• **Protocols work differently. **Bitcoin Ordinals store smart contract transaction data on the Bitcoin network, while Ethions utilize the Calldata function to create inscriptions. Additionally, Ethions require each image to be unique, meaning no two Ethions can be the same. But Bitcoin Ordinals allow the same image to be used on different tokens.
• **Supported data size and type are different. **Currently Ethion supports data sizes limited to under 96KB, while Bitcoin Ordinals allow creators to form inscriptions up to 4 megabytes. While Ordinals supports all types of digital files such as text, video, music or games, Ethion can only support images. In the future, however, it plans to eventually add different file types.

**Ethions Controversy continues, is **** an "innovation" or a "regression"? **

Ethions Potential at a Glance

Compared with traditional NFTs that rely on smart contracts, Ethions is a new protocol that can make NFT assets more economical and decentralized. After the birth of Ethion, the popular community has its own advantages:

• **Low threshold for user participation. **Users do not need extensive technical expertise to create and sell digital assets with an easy and convenient navigation interface. The platform provides clear instructions and guidance for those new to the NFT world, creating a seamless user experience.
• **Transparency, high security. **The core of NFT is a smart contract hosted on the ERC (Ethereum Request for Comment) chain. Most traditional NFT platforms only provide an on-chain verification method, and store the content of the NFT source file off-chain. In contrast, Ethion data is stored on a decentralized network and uses the Ethereum blockchain to achieve transaction security and transparency. The ownership history of each NFT can be traced to prevent forgery on the basis of ensuring uniqueness. or tampered with.
• ** Wide market. **Ethion is backed by the leading public chain Ethereum community, and the platform is highly accessible and open to anyone with an Internet connection, allowing artists, collectors and enthusiasts to efficiently explore and participate in the NFT world. Currently, Ethions is already supported by OpenSea, the most popular NFT marketplace, and Emblem Vault.

Ethions challenge constantly

Although the Ethions protocol detonated the Ethereum community as soon as it came out, tens of thousands of pictures and inscriptions were engraved on Ethereum in just a few hours. **However, many community members believe that Ethions is "driving backwards". **

For example, crypto KOL Chainleft believes that Ethions has no innovation. First, although the protocol has been around since 2016, people have been calling data to store custom data or art,** this technology has been around for years and is not groundbreaking, nor is it a good way to store data . **

Also, the Ethions liquidity mechanism is not perfect. NFT minted based on Ethions currently needs to be packaged into Ethereum's ERC-721 or ERC-1155 NFT using tools like Emblem Vault, and then traded on Opensea. This transaction method still depends on the smart contracts of Ethereum and platforms such as Opensea.

Finally, Ethions needs to be improved in terms of functionality and interaction. For example, the size and type of data currently supported are limited, and the limitations of these basic functions make it unable to meet the diversified needs of NFT casting. Additionally, Ethions differ in that they do not contain any smart contract logic, which makes them more difficult to compose than traditional NFTs. That is, how does the NFT generated by Ethions interact with existing Ethereum smart contracts? This may require the emergence of a series of new tools and new platforms.

**Opportunities for Ethions, **Developers still need to be driven by innovation

The future of Ethions may bring further innovation and development to the Ethereum ecosystem. As the NFT track continues to develop, Ethions will continue to evolve to meet the changing needs of users. ** A series of innovations in tools and platforms, and a series of rich and diverse applications will continue to emerge. **The following are some possible directions for the future development of Ethions:

** Enhanced features and functionality. **Ethions may introduce new features and extensions to provide a more immersive and engaging experience for creators and users. This could include support for other file types such as 3D models, augmented reality (AR) assets, and virtual reality (VR) experiences, opening up a world of possibilities for digital expression.

Additionally, as the Ethereum network continues to grow and scale, these advancements will enable Ethions to process higher volume transactions and provide a seamless user experience while maintaining the security and integrity of the platform.

**Community driven development. **Due to the low barrier-to-entry advantage, Ethions can foster a vibrant community of creators, collectors, and enthusiasts who actively contribute to the development and improvement of the platform, thereby nurturing a thriving ecosystem.

**Smart contract automation integration. **Automated smart contracts can simplify the execution of transactions, reduce costs and provide enhanced security and transparency, making Ethions more efficient and user-friendly. Ethions, on the other hand, can integrate smart contract automation to simplify the process of creating, selling, and transferring NFTs.

**Expanded market and ecosystem. **Ethereum is still one of the leaders of the public chain ecology. With the development of the Ethereum platform and the development of the ecosystem, it is possible to produce a dedicated platform for buying, selling and trading Ethion, and to integrate with other NFT markets and platforms. to increase the exposure and accessibility of foundry products.

Conclusion

In short, through the above series of analysis, we can see that the emergence of **Ethereum inscription Ethions provides a new asset form for NFT, allowing developers and users to present a new choice in the field of encrypted NFT. **Whether for project owners, investors, developers, or users in new fields, making the project better is the best choice for "incentive compatibility". Whether Ethions is a flash in the pan or a new trend in the future, its development direction is in the hands of every ecological developer, creator and participant.

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