The previous bull run undoubtedly brought exhilaration to the crypto industry, with a wave of new projects and investors benefiting from substantial profits. Among the highlights of that era was the introduction of unique token types constructed on the Ethereum blockchain.
While these tokens showcased the untapped potential of blockchain technology, they were not without their challenges. The market was plagued by a surge in “pump and dump” schemes, leaving many to question whether history is destined to repeat itself as the next bull run looms on the horizon.
Jack Jia, Head of Unlimit Crypto, in a panel discussion at Bitcoin 2023 Miami with Ken Kruger, creator of Moon, and Tony Gallippi, co-founder of BitPay, said that there will likely be a spread of “pump and dump” tokens on the Bitcoin network in the next bull run.
He noted that he got the information while listening to a Twitter chat where a group of Chinese mentioned their intentions for the upcoming bull market.
According to Jack, the Asian discussion focused on the potential of BRC-20 tokens to enhance the Bitcoin ecosystem. Drawing from their successful strategy in 2016, the group expressed interest in replicating their achievements during the next bull run.
While discussing the possibility of launching similar projects on Bitcoin, Jack cautioned against network congestion by suggesting a preference for second-layer level implementation.
Jack also emphasized the positive impact of Ordinals and BRC-20 tokens on the Bitcoin blockchain, noting the increased involvement of developers in creating value on the network. He stated that “builders are essential for shaping the future” of Bitcoin, emphasizing the need for product development to attract users.
zkRoll ups will outpace other L2 on Bitcoin
Speaking about future development and scaling for the entire industry, Tony added that in the coming years, he sees zK roll-ups overtaking existing layer two solutions currently used with Bitcoin. The effect is that it will “provide some real scalability in a way that makes economic sense and improves usability.”
Zero-knowledge rollups (zk-rollups) are a type of layer-2 scaling solution for blockchains. They work by moving computation and state off-chain, while storing transaction data on-chain.
This allows zk-rollups to process transactions much faster and more cheaply than on the main blockchain. It’s no news that roll-ups are already being designed for the Bitcoin blockchain.
He also pointed out that the Bitcoin community will need to learn how to navigate the waters of multiple use cases, as the Ethereum ecosystem has done and is doing. He said this in light of the fact that other blockchains are also facing the challenge of congestion, just as Bitcoin is today.