KEYTAKEAWAYS
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Goldinals is compatible with existing Bitcoin asset protocols such as BRC-20, Ordinals, Runes, and CAT.
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The Goldinals ecosystem will cover areas including wallets, trading platforms, infrastructure, financial solutions, and more.
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Goldinals records every token operation directly on the Bitcoin blockchain, relying on Bitcoin's finality and data availability, avoiding risks from L2 protocol interruptions.
CONTENT
In recent days, Bitcoin project Nubit, which focuses on developing native Bitcoin ecosystem technology, released a Bitcoin asset protocol called “Goldinals.” Goldinals is compatible with existing Bitcoin asset protocols such as BRC-20, Ordinals, Runes, and CAT.
Nubit was founded by UC Santa Barbara Professor YU FENG with the goal of “Building the Trustless World Computer for Bitcoin.” Through native Bitcoin technologies (such as BitVM), it aims to achieve Bitcoin’s open extensibility and programmability. Nubit enables developers to build any Bitcoin native applications, bringing global users into the Bitcoin ecosystem.
According to official statements, the Goldinals concept was proposed by Domo, the creator of the first Ordinals protocol token ($ORDI) and BRC20, and technically implemented by the Nubit team. This protocol aims to introduce trustless asset management and programmability to the Bitcoin ecosystem, addressing the lack of interoperability between existing Bitcoin asset protocols (such as BRC-20, Runes, Ordinals, etc.), which leads to liquidity fragmentation and security risks.
HOW IS THE GOLDINALS ECOSYSTEM?
In November last year, at the Mass Adoption Forum of Devcon 2024, Professor Yu Feng, founder of Nubit, announced that Nubit and BRC20 founder Domo jointly released the first trustless asset protocol based on BitVM – Goldinals. This protocol aims to address trust issues in asset creation and transfer within the Bitcoin ecosystem, marking a new phase in Bitcoin’s decentralized asset management.
Source: NUBIT
Goldinals has been continuously expanding its ecosystem, which will cover areas including wallets, trading platforms, infrastructure, and financial solutions. Its core partners include Babylon, Lombard, Yala, Succinct, StarkWare, Fractal Bitcoin, Merlin, sCrypt, and others. These partnerships will drive innovative developments in cross-chain bridges, stablecoins, and Bitcoin native financial solutions.
Additionally, Goldinals has attracted over 30 Bitcoin ecosystem participants, including Milkyway, Wizz Wallet, and Avalon Finance. As Goldinals prepares for launch, developers and community members can participate through the Goldinals official website, ushering in a more open, programmable, and decentralized future for Bitcoin asset protocols.
OVERVIEW OF GOLDINALS DESIGN PRINCIPLES
Goldinals is a Bitcoin native asset protocol designed to break Bitcoin’s technical constraints while providing functionality similar to mature asset standards on other blockchains (such as Ethereum’s ERC-20).
On Ethereum, developers can use the ERC-20 standard to deploy, transfer, mint, and burn tokens through a simple API. However, while the current Bitcoin-based BRC-20 protocol attempts to achieve similar functionality, it heavily relies on off-chain indexers and additional trust assumptions, limiting its decentralization properties and security.
Source: NUBIT
To address trust and security issues, the Goldinals asset protocol provides a revolutionary alternative that implements similar APIs directly on the Bitcoin blockchain, including:
- Deploy: Initialize protocol global parameters and create new token instances.
- Mint: Increase token supply and allocate new tokens to specified addresses.
- Transfer: Move tokens between addresses while ensuring validity checks like balance verification.
- Burn: Reduce token supply by permanently removing tokens through on-chain operations.
Although the logic of these APIs is similar to ERC-20, implementing these functions on Bitcoin requires overcoming limitations imposed by its stateless design and non-Turing complete script language. To address this challenge, Goldinals designed a sophisticated three-phase state machine process to ensure the legality, transparency, and trustlessness of operations.
Through the three-phase state machine, Goldinals cleverly adapts to Bitcoin’s technical constraints by breaking down each operation into multiple steps, while combining on-chain data and zero-knowledge proofs (ZKP) to ensure the security and reliability of the final confirmed state. This design not only solves Bitcoin’s native technical limitations on complex operations but also eliminates dependence on centralized indexers, allowing each token operation to be completed in a trustless environment.
WHAT ARE THE ADVANTAGES OF GOLDINALS?
The launch of Goldinals may usher in a new era of unification and explosion for the Bitcoin asset ecosystem. As a complete ERC-20 standard on Bitcoin, Goldinals can be compatible with existing Bitcoin asset protocols (such as BRC-20, Ordinals, Runes, and CAT) while supporting future Bitcoin asset and application development.Goldinals has the following significant advantages:
- Minimized Trust: All operations are verified directly on the Bitcoin blockchain, eliminating the need for centralized indexers or custodial solutions, ensuring complete decentralization properties.
- Inherits Bitcoin’s Security: Goldinals records every token operation directly on the Bitcoin blockchain, relying on Bitcoin’s finality and data availability, avoiding risks from L2 protocol interruptions.
- Native Programmability: Leveraging BitVM technology, Goldinals supports complex on-chain logic, including multi-signature wallets, conditional transfers, and token gating, expanding the application scenarios of the Bitcoin protocol.
- Efficiency and Scalability: Goldinals utilizes zero-knowledge proofs and optimized design to significantly reduce transaction costs while improving operation speed and scalability, providing a better experience for developers and users.
Building on these advantages, Goldinals is not only an upgrade to Bitcoin asset protocols but also serves as the foundational framework for the future development of the Bitcoin asset ecosystem.
HOW FAR IS THE VISION OF BITCOIN 3.0?
It can be said that Goldinals introduces a completely new trust-minimized token standard, injecting powerful decentralization and programming capabilities into the Bitcoin asset ecosystem, marking a significant leap in the evolution of Bitcoin asset protocols. Through compatibility with existing ecosystems and seamless support for new application scenarios, Goldinals provides broader possibilities for Bitcoin’s applications in the global economy.
The Nubit official website describes it as “Nubit is building the Trustless World Computer for Bitcoin, enabling open scaling through Bitcoin-native technology.” However, the future still depends on practical results.
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