Behind the general rise of ARC-20 tokens, what are the new developments of Atomicals?

On the morning of December 14, according to Atomicals Market data, the mainstream ARC-20 token of the Atomicals Protocol ecosystem saw a general rise.

Among them, DMINT is quoted at $0.12, up 196.3% in 24 hours; BITVM was quoted at $0.03, up 47.73% in 24 hours; REALM was quoted at $0.72, up 53.41% in 24 hours; AVM was quoted at $0.2, up 48.9% in 24 hours; ATOM was quoted at $10.49, up 10.26% in 24 hours.

Among these tokens, the price of ATOM broke through $13 yesterday and also hit an all-time high.

It is worth noting that behind the general rise of mainstream ARC-20 tokens, Atomicals Protocol’s frequent ecological updates in the past week, as well as the rare appearance of the founder yesterday afternoon, have become one of the driving forces behind the general rise of mainstream tokens.

Founder Arthur makes a rare appearance

Yesterday afternoon, Arthur, the founder of Atomicals Protocol, accepted the interview invitation of the Ordinal Revolution Podcast, and shared the recent developments of Atomicals Protocol and his views on the BTC ecosystem in the interview room in a faceless manner.

Screenshot of the interview room

In the interview, Arthur pointed out that not much attention was paid to the DMINT feature when it was first built. While Atomicals Protocol was originally built for the Realm system, the project aims to revolutionize online identity and naming issues. However, the versatility of the protocol allows it to be used with any type of computer program, making it ideal for dynamic systems.

Arthur said developers are ready to build a decentralized ID platform on Realms that allows users to attach their avatars, names, and links to their online profiles.

At the same time, he explained the trading rules of Subrealms and DMINT in detail, telling the community that “the groundwork is done for others to continue to build”.

In addition, Arthur gave his opinion on meta protocols in an interview, arguing that meta protocols are a new way for developers to create their own data structures and rules, rather than using existing rigid structures. Metaprotocols like Atomicals Protocol are emerging, allowing developers to take advantage of smart contracts and create new structures.

Creators can focus on the Atomicals Virtual Machine (AVM), which will enable developers to create smart contract programs on BTC and create experiences like never before.

New rules for Atomicals Protocol: Support for small transactions

In addition, Atomicals Protocol has been issuing new regulations frequently in the past week, which has also made the community have higher expectations for it.

On December 7th, Atomicals Protocol proposed an innovative split scheme for the ARC-20 token in its official documentation, aiming to solve the “dust limit” problem that exists in the BTC network. In the BTC network, the smallest unit of a single UTXO transmission is 546 satoshis satoshis, which limits the use of ARC-20 tokens in small transactions.

Source: Atomicals Protocol official documentation

Atomicals Protocol’s proposed solution overcomes this limitation by introducing a “Substantiation Factor” (SF) that redefines the number of satoshis required to support a single ARC-20 token. The core of the scheme is to allow token holders to convert their token units from 1:1 to smaller ratios such as 1:10, 1:100, etc., effectively “splitting” or “subdividing” their token units to arbitrary precision.

It’s worth noting that doing so requires a regular satoshi to be collateralized as a token unit accordingly. By default, ARC-20 operates to 0 decimal places, which is a materialization of 1:1. By changing the index to obtain decimal places, different proportions of “rescaling” or “re-substantiation” can be achieved.

For example, to trade 1 token unit while respecting the dust limit, simply materialize each token unit with 1, 000 satoshis and then execute a transfer of 1, 000 satoshi with an index of 3. This solution not only maintains the fungibility and liquidity of ARC-20 tokens, but also greatly improves the flexibility and precision of transactions.

Realm Rules Update: Users can mint Subrealms using ARC-20 token payments

On December 12, Atomicals Protocol released trading rules for Subrealms and DMINT, allowing Realm owners to mint Subrealms via bitwork or ARC-20 token payments, helping users easily create advanced rules and payments in real-time as a condition for claiming Subrealms and DMINT NFT items.

Realm is BTC native name system where everyone is free to register, where each name is an NFT token that belongs to the user forever unless the user chooses to give or sell. And the Domain Naming System (RNS) “aims to be a global alternative to the DNS and all other blockchain naming systems”.

Whereas, Subrealms is a name that sits after the domain name, separated by dots, and it represents a subcategory or product in the organization’s identity hierarchy. Subrealms can be used to showcase NFT collections or other assets within Realm. Subrealms can be owned by individuals and sold to others, or issued as separate tokens within BTC blockchain.

This update also means that ARC-20 tokens can be used to pay for DMINT NFTs. Some community members noted that the series of updates to Atomicals Protocol accurately captures “the needs and excitement of the community.”