Inscription Protocol Depth Analysis: Principles of Multi-chain Implementation and Security Considerations

Recently, several well-known trading platforms have successively launched inscription markets, supporting various inscription protocols such as BRC-20 and EVM, sparking widespread attention to inscriptions in the market. However, the complexity and novelty of inscription protocols have also brought many security risks, which not only threaten the safety of user assets but also have a negative impact on the healthy development of the entire inscription ecosystem.

This article will provide an in-depth analysis of mainstream inscription protocols, helping users understand their uses, implementation methods, and asset protection measures.

inscription Overview

Inscription is the use of blockchain characteristics to permanently record information with specific meaning on the chain. This information can be simple text or complex code or images. In this way, we can utilize a unified standard to achieve digital asset functionality.

inscription ecosystem status

Since the emergence of BRC-20 and other Bitcoin blockchain inscriptions, the inscription ecosystem has developed rapidly. Currently, new inscription protocols and projects are emerging almost every day. Mainstream public chains are joining the inscription ecosystem, such as the Ethscription protocol on the ETH blockchain, the ARC-20 protocol on the BTC blockchain, the BSC-20 protocol on the BSC blockchain, and the PRC-20 protocol on the Polygon blockchain.

Main Inscription Protocol Analysis

1. BRC-20

BRC-20 is based on the UTXO model and the Ordinals protocol. Ordinals assigns a unique number to the smallest unit of Bitcoin, "satoshi," and supports writing various data into satoshis. BRC-20 uses the Ordinals protocol to write uniform JSON formatted text data into satoshis as a token ledger.

BRC-20 includes three standard operations: deploy, mint, and transfer. Token transfer is realized by sending the inscription to the target address to achieve balance changes.

2. ARC-20

ARC-20 is also based on the Bitcoin public chain, but unlike BRC-20, it directly represents the number of tokens using the number of satoshis in the UTXO, with the rule that 1 satoshi equals 1 ARC-20 token.

ARC-20 is also divided into three steps: deployment, minting, and transfer. During minting, the number of satoshis in the UTXO is the minting quantity. During transfer, the UTXO holding the tokens is directly transferred to another address without the need to fill in additional data.

3. inscription

Ethscription is an inscription protocol on Ethereum that uses the calldata data block of transactions to add standard data. When creating an Ethscription, the image is converted to a Base64 encoded URI, which is then transformed into a hexadecimal string to be filled in the calldata. To transfer an Ethscription, the hash of the transaction that created it must be included in the calldata.

4. EVM blockchain inscription

EVM blockchains such as BSC, Ethereum, and Polygon use a similar method to store fixed-format data in calldata. Taking BSC Chain as an example, the inscription format is data:,{"p":"","op":"","tick":"","amt":""}, which respectively represent the protocol name, operation, token name, and amount.

When transferring tokens, send a regular transfer to the receiving address and fill in the hash of the transaction creation in the calldata. There may be slight differences between different EVM chains or protocols, but the basic principles are the same.

Security Precautions

1. Fully understand the implementation principles of the inscription protocol to avoid operational errors that may lead to asset loss.
2. BTC inscription (such as BRC-20, ARC-20) is based on UTXO transactions, and users may accidentally transfer or "burn" the inscription during regular BTC transfers.
3. EVM chain inscriptions use calldata to store data, and users should handle calldata information in transactions with caution.
4. Use trusted platforms and tools for inscription operations to avoid malicious script or contract risks.
5. Regularly back up the inscription-related private keys and address information to ensure asset security.

In summary, the inscription protocol utilizes the characteristics of public chain systems to store information on the blockchain according to standards, and it is displayed through offline servers. Although inscription transactions can reduce additional costs, users must fully understand its implementation mechanism to prevent irreversible asset losses.