EmblemVault bringing BRC-20 to ETH: is it a good or bad thing?

EmblemVault has brought BRC-20 to the ETH chain by integrating with ERC-20. Cryptocurrency researcher xiyu has provided an introduction to the background, advantages, and disadvantages of this event, analyzing its pros and cons. They believe that an excessive amount of limiting factors may reduce the possibility of BRC-20 becoming a mainstream cryptocurrency for trading.

EmblemVault is a service provider for cross-chain NFT transactions using tokenized wallets. It had a significant impact in the early days of Ordinals. At that time, the main mode of transaction was OTC, and EV brought the inscriptions to the ETH chain, where they could be bought and sold on OpenSea. However, due to the cumbersome operation and high user learning costs, it has not been widely adopted.

BRC-20 is a way of trading by minting, transferring, and parsing inscriptions, including later CEX transactions, all of which are traded on the Bitcoin native chain. Creating a BRC-20 vault through EV is equivalent to creating a CEX hot wallet and fund pool. By integrating ERC20, BRC-20 can be traded on OpenSea and Blur, bringing BRC-20 from the Bitcoin chain to the ETH chain.

Advantages: More liquidity; Disadvantages: 1) The BRC-20 collection needs to be audited, and compared to CEX, it has no liquidity and efficiency advantages; 2) Many people believe that BRC-20 is for the native issuance of coins on the Bitcoin chain, and loses its native characteristics when it returns to the ETH chain; 3) It is inferior to ERC20 in all aspects, and efficiency is also limited by the Bitcoin and Ethereum chains. 4) The interaction is cumbersome, increasing learning costs and risks. In summary, this possibility can be explored, but the prospects for BRC-20 trading in this form are not optimistic. Too many limiting factors reduce the possibility of becoming mainstream BRC-20 trading.

Reference: https://twitter.com/ohxiyu/status/1676225982360059907

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