Stamps is a blockchain protocol created by MikeInSpace that enables storing images on-chain on Bitcoin transaction outputs. It utilizes the Counterparty platform, a long-standing Bitcoin meta layer, to broadcast Stamping transactions to the Bitcoin Network. The protocol enables the creation of Bitcoin NFTs, especially low-resolution pixel art.
In our initial research paper, we dived into the details of the Stamps Protocol, accessible via this link. We cordially recommend studying the comprehensive report.
Our monthly update reviews important milestones and developments in June 2023. If you missed our last report, please visit this link to catch up.
We observed a deceleration in minting activity during June compared to May - a trend mirrored in the Ordinals Protocol - possibly attributed to the gradual dampening of SRC-20 enthusiasm. Additionally, the developers implemented modifications in the SRC-20 Specification toward the month's end, as discussed later in this report. Such a proceeding led to a generally sluggish situation in activities, and correspondingly, statistical data was unavailable after the change. According to records, over 11,000 stamps were minted in June, bringing the cumulative count of Stamps to 67,911.
SRC-20 mints continue to be the catalyst in June, pursuing the established pattern. The increased prominence of SVG format Stamps (now at 69%) clarifies this trajectory. It's essential, from a technical perspective, to explain that SRC-20 mints are essentially JSON strings embedded on-chain, whereas the SVG or JPG are appended off-chain on the front of the Stampchain or Rarestamp (depending on the scenario). Consequently, this enables them to appear on the Bitcoin Stamps Protocol index/API. We express our gratitude to the Rarestamp team for contributing this input to improve our report.
It seems that there are some technical issues arising from the increased demand for SRC-20 mints. Consequently, there are delays in the minting process, causing some minting services to temporarily suspend their activity. It will be interesting to observe the ongoing minting activities in the near future, considering the recent changes made in the SRC-20 standard. Given the limited infrastructural resources, it remains likely that the excitement may subside.
As of June 26, 2023, there were 4,374 blocks that contained Stamps related data.
The analysis of blocks containing Stamps presents no significant discrepancies compared to the previous month. Unlike the case with Ordinals, Bitcoin blocks included a minimal number of Stamps. Still, 464 Stamps in block number 790,249 remains the highest number of Stamps in any block.
In line with SRC-20 mints, Key Burn usage has remained unchanged since last month. As per data, 70% of all stamps have utilized the key burn option.
As previously mentioned in our initial report, an evolving ecosystem exists for Bitcoin Stamps. Despite being in its early stages and self-funded, we have noticed various projects emerge while some have decided to halt operations (e.g., TokenStamps.io). There is a significant need for infrastructure to expand Bitcoin Stamps and make it more versatile for various use cases. This is crucial for creating a sustainable ecosystem.
Among the noteworthy advancements in June includes the revamp of the SRC-20 Specification. Starting from Block 796,000, SRC-20 transactions are now created directly on BTC and are no longer supported as Counterparty transactions. The direct-to-BTC method is expected to help optimize the transaction size and reduce the cost of transactions. As discussed in our May update, discernible opposition from the Counterparty community to SRC-20 issuances was evident. Thus, the transitioning step is considered advantageous for both communities.
In light of this development, we emphasize that we can not discard the risk posed by similar actions by the Counterparty community that could affect the original use of Bitcoin Stamps. The likelihood of encountering this risk heightens if Stamps begin to impose significant overheads on Counterparty node administrators. Nonetheless, the demonstrated proficiency of the Stamps Developer community in their recent work instills confidence in their ability to surmount such an obstacle.
On July 2, 2023, the wallet address (bc1qe5sz3mt4a3e57n8e39pprval4qe0xdrkzew203) for the Stamps Development Fund received around 0.48321182 BTC, which is equivalent to approximately USD 13,663.41, in contributions. As of today, the wallet currently holds approximately 0.38114477 BTC, which is equivalent to USD 11,655.41.
To conclude, the Stamps Protocol is still expanding, although slower than the previous month. The slowdown can be attributed to the challenges faced by the Stamps community, such as technical obstacles and the revamp of SRC-20, as well as the industry's overall performance. While the developers are busy working on putting SRC-20 back on track, there remain apparent inconveniences to the overall Stamps experience.
It is anticipated that any disruptions will be temporary. Additionally, it is believed that the revamp of SRC-20 has aided developers in reducing their learning curve, increasing their readiness for potential occurrences in the future.
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We would like to express our appreciation to MikeInSpace and Angel from the Rarestamps team for their valuable insights that improved the technical quality of this report.
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