The latest Dezeen “gold rush” to mint everything from profile pictures to Memecoins has caused at least half a dozen blockchain networks to crack under the pressure in the past week.
seen in the last few days ArbitrumAccording to industry researchers, Avalanche, Chronos, zkSync and TON have all recently been partially or completely shut down due to writedowns, with modular data availability network Celestia being the latest. Posted Screenshot of its block explorer on December 18.
There are also videos Posted Large-scale mining on the Celestia network.
“The team is actively investigating, but we can confirm that the continued growth of inscriptions has caused the sequencer to stop properly relaying transactions,” Arbitrum. Confirmed on December 16 amid a 78-minute interruption.
Meanwhile, Chronos developer Ken Timsitt informed of The team implemented a network update to enable dynamic transaction fees that change with transaction volume.
“The chain can now more effectively withstand traffic spikes, like the one that happened this week, caused by high demand for inscriptions,” he said.
What is the reason for the rise in gold?
Like Bitcoin ordinals, which allow data like text, images and videos to be imprinted directly on the chain – people have now realized that they can do the same thing on Ethereum and other EVM-based chains by imprinting data on transaction data. Can.
Crypto developer Shardul Mahadik Explained,
“Bitcoin inscriptions are equivalent to writing on the smallest denomination of currency bills (UTXO model). EVM inscriptions are the equivalent of a note comment field on a payment app. Where you make 0 transactions for yourself and write the data in the notes field. (ACC Model)”
Over the past few days, the majority of these have been BRC-20-type tokens based on various collectibles like Bitcoin Frogs and various new token tickers like BMBI, BEEG, and GROK, according to the Ordinals tracker. Ord.io,
Crypto researcher “Sygar” assumed that users are sending mint tokens and transferring transactions to themselves with call data because the operations are cheap.
These are being used heavily in an attempt to replicate the successes of ERC-20 on other chains, but due to the low cost of minting compared to smart contract interactions most of the activity is the same users spamming small mints over and over again.
Over the past few days, inscriptions have caused a series of destructions and heavy gas incidents.
However, very few people actually understand what is going on.
Here’s a simple explanation of inscriptions – how they work and why they are being spammed everywhere: pic.twitter.com/IjQ6wuypRX
– Cigar (@0xCygaar) 18 December 2023
Bitcoin developer Eric Wall gave theory The EVM issuances earlier this month could be seen as a way for retail to access low-cap crypto assets.
ICOs are regulated and restricted and many projects start with token sales limited to venture capital firms or accredited investors.
“Burning gas/wasting blockspace is one of the last delivery mechanisms that exists with open access to retail,” he said. He described the inscriptions as “BRC-20 derivatives”, and said:
“Since *anyone* can participate in issuing a specific ticker (mining it by burning the blockspace) from day one, this is one of the few last bastions where the retail sector has not yet clearly gotten in on the ground floor. “Could be illegal fashion.”
However, Michael Rinko, an analyst at crypto research firm Delphi Digital, did not see any logic behind it. “I see it as a new hot thing,” he said told Bloomberg Before adding, “There is zero rationality behind this.”
Connected: Gas spent daily on EVM inscriptions hits record high of $8 million
Meanwhile, blockchain spy ‘ZachXBT’ caution about crypto influencers promoting shitcoins in a Dec. 19 post on social media.
“The market has been trending up for weeks, yet they still have to resort to it to make profitable trades,” he said, adding, “This is your warning, so if you get cheated then my Don’t come near crying.”
Pay attention to influencers who are moving coins with less market cap or liquidity than their entire follower count.
The market had been moving up for several weeks yet they still had to resort to it to make profitable trades.
This is your warning so if you get it, don’t come crying to me… pic.twitter.com/Z6n2wllM2w
– ZachXBT (@zachxbt) 18 December 2023
As informed of By Cointelegraph on December 18, inscription on evm (Ethereum Virtual Machine) compatible chains have surged over the past few days.
According to Dune AnalyticsMore than $6 million was spent on gas at the inscriptions on December 18, and a record $8.3 million was spent on them on December 16.
However, on December 18, Polygon founder Sandeep Nailwal said minters were switching to Polygon due to favorable gas fees.
Highest number of inscriptions @0xpolygon POS, 161m.
The amount of inscriptions on the second place series is more than 2X that of inscriptions.
The funny part, although the gas fee is still under 10 cents, I’ve heard horror stories that it has reached $400 at some chains. braid… pic.twitter.com/RC91DaOGhx
—Sandeep Nailwal Sandeep. polygon (@sandipnelwal) 18 December 2023
