Papers
Topics
Authors
Recent
Gemini 2.5 Flash
Gemini 2.5 Flash
162 tokens/sec
GPT-4o
7 tokens/sec
Gemini 2.5 Pro Pro
45 tokens/sec
o3 Pro
4 tokens/sec
GPT-4.1 Pro
38 tokens/sec
DeepSeek R1 via Azure Pro
28 tokens/sec
2000 character limit reached

The Writing is on the Wall: Analyzing the Boom of Inscriptions and its Impact on EVM-compatible Blockchains (2405.15288v3)

Published 24 May 2024 in cs.CR

Abstract: This paper examines inscription-related transactions on Ethereum and major EVM-compatible rollups, assessing their impact on scalability during transaction surges. Our results show that, on certain days, inscriptions accounted for nearly 90% of transactions on Arbitrum and ZKsync Era, while 53% on Ethereum, with 99% of these inscriptions involving meme coin minting. Furthermore, we show that ZKsync and Arbitrum saw lower median gas fees during these surges. ZKsync Era, a ZK-rollup, showed a greater fee reduction than the optimistic rollups studied -- Arbitrum, Base, and Optimism.

Definition Search Book Streamline Icon: https://streamlinehq.com
References (44)
  1. Dune Dashboard - EVM Inscriptions, 2024. URL: https://dune.com/hildobby/inscriptions.
  2. Ethereum Roadmap, 3 2024. URL: https://ethereum.org/en/roadmap/.
  3. Uniswap v3 core, 2021.
  4. The role of reddit in the gamestop short squeeze. Economics Letters, 211:110249, 2022.
  5. Blockchain adoption: A value driver perspective. Business Horizons, 62(3):307–314, 2019.
  6. Anonymous. Brc-20 experiment. 2023. URL: https://domo-2.gitbook.io/brc-20-experiment/.
  7. Louis Bertucci. Bitcoin ordinals: Determinants and impact on total transaction fees. Available at SSRN 4486127, 2023.
  8. BigInt. BigInt. hhttps://bigint.co/inscriptions, 2024. Accessed on May 22, 2024.
  9. Binance. Binance NFT Marketplace to Support Bitcoin NFTs. https://www.binance.com/en/blog/nft/binance-nft-marketplace-to-support-bitcoin-nfts-4250480174684233711, 2024. Accessed on May 22, 2024.
  10. Corwin Smith. ERC-20 Token Standard. https://ethereum.org/en/developers/docs/standards/tokens/erc-20, 2024. Accessed on May 22, 2024.
  11. Corwin Smith. ERC-721 Non-Fungible Token Standard. https://ethereum.org/en/developers/docs/standards/tokens/erc-721, 2024. Accessed on May 22, 2024.
  12. Flash boys 2.0: Frontrunning in decentralized exchanges, miner extractable value, and consensus instability. In 2020 IEEE Symposium on Security and Privacy (SP), 2020.
  13. Ethereum Foundation. Non-fungible tokens (NFT). https://ethereum.org/en/nft, 2023. Accessed on April 15, 2024.
  14. A survey of layer-two blockchain protocols. 2022. arXiv:2204.08032.
  15. Samuel Haig. Mantle’s Throughput Peaks At 200 TPS As Inscriptions Expand Across Layer 2s. https://thedefiant.io/news/defi/mantle-s-throughput-peaks-at-200-tps-as-inscriptions-expand-across-layer-2s, 2024. Accessed on May 23, 2024.
  16. Insacribe. Incentivized mainnet. https://inscribe.app/app, 2024. Accessed on May 22, 2024.
  17. Protocol Labs. Ipfs powers the distributed web. https://ipfs.tech, 2024. Accessed on May 22, 2024.
  18. Compound: The money market protocol, 2019.
  19. Bitcoin Inscriptions: Foundations and Beyond, January 2024. arXiv:2401.17581 [cs]. URL: http://arxiv.org/abs/2401.17581, doi:10.48550/arXiv.2401.17581.
  20. MakerDAO. Governance Module – Maker Protocol Technical Docs. https://docs.makerdao.com/smart-contract-modules/governance-module, 2023. Accessed on April 2, 2023.
  21. Understanding blockchain governance: Analyzing decentralized voting to amend DeFi smart contracts. arXiv preprint arXiv:2305.17655, 2023.
  22. Airdrops: Giving money away is harder than it seems. arXiv preprint arXiv:2312.02752, 2023.
  23. Satoshi Nakamoto. Bitcoin: A Peer-to-Peer Electronic Cash System, 2008.
  24. Nansen. Nansen Query: Empowering Crypto Teams With In-Depth Blockchain Data. https://www.nansen.ai/query, 2024. Accessed on May 22, 2024.
  25. Impact of EIP-4844 on Ethereum: Consensus Security, Ethereum Usage, Rollup Transaction Dynamics, and Blob Gas Fee Markets, May 2024. arXiv:2405.03183 [cs, math]. URL: http://arxiv.org/abs/2405.03183, doi:10.48550/arXiv.2405.03183.
  26. Liquidations: Defi on a knife-edge. In Financial Cryptography and Data Security, 2021.
  27. Blockchain adoption is inevitable—barriers and risks remain. Journal of Corporate accounting & finance, 31(2):21–28, 2020.
  28. Provenance. Blockchain: the solution for transparency in product supply chains. https://www.provenance.org/whitepaper, November 2015.
  29. Attacking the DeFi Ecosystem with Flash Loans for Fun and Profit. In Financial Cryptography and Data Security, 2021.
  30. Robert Hackett. Walmart and 9 Food Giants Team Up on IBM Blockchain Plans. http://fortune.com/2017/08/22/walmart-blockchain-ibm-food-nestle-unilever-tyson-dole, August 2017.
  31. Layer 2 blockchain scaling: A survey. arXiv preprint arXiv:2107.10881, 2021.
  32. Shivam Sharm. BRC-20 Tokens: A Primer. https://www.binance.com/en/research/analysis/brc-20-tokens-a-primer, 2023. Accessed on Jan 15, 2023.
  33. Tom Blackstone. Arbitrum network went offline for 78 minutes because of inscriptions. https://cointelegraph.com/news/arbitrum-network-goes-offline-december-15, 2023. Accessed on Jan 15, 2023.
  34. Explaining gamestop short squeeze using intraday data and google searches. forthcoming in the Journal of Prediction Markets, 2021.
  35. Non-fungible token (NFT): Overview, evaluation, opportunities and challenges. arXiv preprint arXiv:2105.07447, 2021.
  36. Brc-20: Hope or hype. arXiv preprint arXiv:2310.10652, 2023.
  37. Understanding brc-20: Hope or hype. Available at SSRN 4590451, 2023.
  38. A review of blockchain platforms based on the scalability, security and decentralization trilemma. ICEIS (1), pages 146–155, 2023.
  39. Gavin Wood. Ethereum: A secure decentralised generalised transaction ledger, 2014.
  40. Sok: Decentralized exchanges (dex) with automated market maker (amm) protocols. ACM Computing Surveys, 55(11):1–50, 2023.
  41. Shades of Finality and Layer 2 Scaling. 2022. arXiv:2201.07920.
  42. Bridging brc-20 to ethereum. arXiv preprint arXiv:2310.10065, 2023.
  43. Game starts at gamestop: Characterizing the collective behaviors and social dynamics in the short squeeze episode. IEEE Transactions on Computational Social Systems, 9(1):45–58, 2021.
  44. ZKS Market. A Tool To Inscribe zrc-20. https://zksmarket.ink, 2024. Accessed on May 22, 2024.
Citations (1)
View on Semantic Scholar

Summary

We haven't generated a summary for this paper yet.

Ai Sparkles Streamline Icon: https://streamlinehq.com Summarize Now