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AUSTIN, Texas – Trust Machines, a firm in the Bitcoin ecosystem, has reported a significant surge in the utilization of Bitcoin (BTC) during Q1 of 2023. According to the firm's latest research, the growth in Bitcoin use cases has been explosive.
The latest report has identified several key use cases that are driving the growth and adoption of Bitcoin. These include Bitcoin non-fungible tokens (NFTs) and Bitcoin name services (BNS), as well as recent developments on the Stacks blockchain. Trust Machines, which heavily relies on the Stacks blockchain as a Bitcoin smart contract platform, has experienced significant growth in these areas during Q1 of 2023. The report highlights the importance of these use cases in expanding the use and appeal of Bitcoin in various industries.
During a panel discussion titled "Building on Top of Bitcoin (for Real)" at Consensus 2023, Muneeb Ali, CEO of Trust Machines and co-founder of Stacks, mentioned that while Web3 development has experienced exponential growth on other blockchains like Ethereum, Bitcoin development has fallen behind. However, as new use cases and technologies continue to emerge, Ali believes that this trend is likely to change.
"It's the revival of the developer culture that I'm by far the most excited about. It's like bitcoin is fun again because there's a place to build again and that's the best thing that could have happened," Ali said.
The historical use case of the Bitcoin blockchain has primarily been focused on payment processing. Satoshi Nakamoto, the anonymous creator of Bitcoin, had explicitly discouraged non-financial use cases for the network. However, with the advent of new technologies, the potential of Bitcoin as a foundational layer for the development of Web3 is being realized. This has opened up new possibilities for the blockchain to be used in diverse applications beyond just financial transactions.
In the world of Bitcoin NFTs, the Ordinals protocol made waves earlier this year with its unique approach to creating digital artifacts. By adding "inscriptions" to sequentially numbered satoshis or "sats" - the smallest units of Bitcoin - the protocol allows for the creation of one-of-a-kind pieces that can be held and transferred across the Bitcoin network like any other sats. These inscriptions can take the form of arbitrary content such as text or images, making the possibilities for creativity endless. Overall, the Ordinals protocol has opened up exciting new possibilities for collectors and creators in the Bitcoin NFT space.
According to research conducted by Trust Machines, the number of minted inscriptions has surpassed one million.
Trust Machines' research indicates a remarkable 400% increase in BNS registrations on BTC.us, its sister platform, since 2022. BTC.us enables users to register human-readable ".btc" domain names, which can be utilized to host a website or facilitate Bitcoin transactions. Trust Machines attributes this surge in registrations to two factors: the popularity of Ordinals and the launch of Nostr, a decentralized social media protocol backed by Jack Dorsey.
Muneeb Ali, one of the co-founders of the Stacks blockchain, has played a significant role in powering the majority of applications within the Trust Machines' ecosystem. According to research conducted by the crypto data analytics firm Messari, Stacks has witnessed a 76% surge in its average daily active users and a 42% increase in addresses during the fourth quarter of 2022.
Towards the end of last year, Stacks published a white paper outlining the transformative capabilities of a new digital asset known as "Stacks bitcoin" (sBTC), which enables the complete programmability of Bitcoin. This breakthrough has the potential to significantly enhance the utility and functionality of Bitcoin within various applications and use cases.
“While we've seen a revival of Bitcoin NFTs in recent months, there is more development to be done to unlock Bitcoin [decentralized finance] use cases fully,” the research said, adding that one of the biggest efforts to unlock that is sBTC.
Stacks has recently introduced an sBTC testnet and has set its sights on a mainnet release later this year. This development represents a significant step towards the realization of Stacks' vision for a fully programmable Bitcoin ecosystem.