2024/01/31
Six-month target price: $4.76 (corresponding to a $100 million market cap)
Penta-dimensional score: 73 points
The BRC-20 token standard offers a new avenue for issuing tokens and NFTs within the Bitcoin ecosystem, bringing fresh vitality to it. BRC-20 is a token standardization protocol in the Bitcoin ecosystem, designed to allow users to generate and issue their tokens on the Bitcoin blockchain. This protocol was initially proposed in March 2023 by Twitter user @domodata. While still experimental, BRC-20 has gained widespread recognition and support, largely due to the innovation of the Ordinals protocol. Ordinals enable the embedding of data on the Bitcoin blockchain, creating unique Bitcoin non-fungible tokens (NFTs) that are stored directly on Bitcoin's main chain, unlike traditional NFTs which are on blockchains like Ethereum or other layer-2 networks. BRC-20 addresses long-standing scalability issues within the Bitcoin ecosystem. The limited transaction processing capacity of the Bitcoin blockchain has restricted its application in certain areas.
BRC-20 opens the door for the Bitcoin ecosystem to build its independent ecosystems, similar to Ethereum, by allowing users to create and issue their tokens on the Bitcoin blockchain. Projects with innovative designs often attract the most attention and support in the blockchain space. Bitcoin paved the way for blockchain applications in market transactions, and BRC-20 opens new paths within the Bitcoin ecosystem, solving scalability issues. It provides a standardized approach for issuing tokens and creating NFTs on the Bitcoin blockchain, pointing the way for the future development of the Bitcoin ecosystem. The launch of BRC-20 is a milestone event, akin to the creation of ERC-721 on Ethereum, which not only drove explosive growth in the NFT market and related applications but also expanded Ethereum's range of applications and promoted the development of the digital asset market as a whole.
AI technology and Web3 concepts empower BRC-20 tokens to increase efficiency and stability. AI provides strong support in the design and validation of BRC-20 tokens, and the development of the Web3 ecosystem offers more possibilities for the prospects of BRC-20. AI has vast potential in scenarios such as smart contract design, data analysis, risk control, and ecosystem construction. Specifically, in smart contract design and development, intelligent code editors (like Github Copilot) improve efficiency and quality, and AI-based code reviews ensure that token standards are compliant, logical, and free of vulnerabilities. In data analysis, AI plays a key role by monitoring public sentiment and market trends, effectively improving investment efficiency and accuracy. With AI's empowerment, BRC-20 tokens can be monitored and adjusted in real time to effectively control risk. AI can monitor the market and users, automatically adjusting the tokens' parameters and functionalities to ensure stable operation in various situations. The development of Web3 also brings more innovative applications and scenarios to BRC-20 tokens, enriching user experience and overall value. By developing new dApps, creating digital economies and communities, achieving cross-chain and cross-platform interoperability, and allowing on-chain data to feed back into AI, AI data and tools can drive the development of BRC-20 tokens. BRC-20 tokens and the Web3 ecosystem complement each other, achieving a positive cycle where AI, Web3, and BRC-20 token development mutually promote growth.
The AINN token represents the consensus of combining Web3 and AI to lead technological innovation. AINN (X: @AINN_BRC-20), based on the BRC-20 protocol and deployed in May '23, represents the strong consensus of the future long-term value of combining Web3 with AI. AINN currently has a market cap of $17 million, leading in the token race, with AI-related investors and developer communities around the world actively participating. On January 26, Bitrise Capital announced on Twitter that its Bitcoin Ecosystem Growth Fund had increased its holdings to over 1% of AINN's total token supply. The AINN community aggregates a group of high-quality holders who fully believe in the vision of deeply integrating Web3 with AI to create tremendous value for human society. Guided by this vision, 10+ ecosystem projects are under construction around AINN, creating use cases for the token. These ecosystem projects include AIBS (X: @AINN_AIBS, where holding the token enables the use of AI applications, with AINN having a payment scenario), AIL2 (X: @btc_ail2, a Bitcoin layer-2 public chain supporting AI applications, with AINN serving as gas for consumption), AI Q&A/picture/video generation tools (AINN with pass card scenario), and AI virtual girlfriend/boyfriend/pet/games (AINN with entertainment scenario), among others. AINN's ecosystem is continuously expanding, with more and more Web3+AI projects capturing value both ways with AINN, ultimately realizing the concept of transforming human society with Web3+AI.
The first ecosystem project of AINN has successfully completed institutional financing, marking a new era in the AI and Web 3.0 fields. Bayes Protocol (AIBS) is the inaugural ecosystem project of AINN, which completed its institutional funding round on January 26th with investors including Japan's renowned Web 3.0 investment firm CGV, Bitrise Ecosystem Growth Fund, Silicon Valley's Web 3.0 investment firm Link Capital, leading Silicon Valley dollar fund partners, as well as seasoned investors in the AI and Web 3.0 domains. AIBS is a decentralized financial platform built atop artificial intelligence, utilizing Bayesian networks and machine learning techniques to predict and enhance financial market performance. By leveraging shared GPU resources for the training of AI models, AIBS democratizes access to computational resources, laying the groundwork for collaboration in the AI development process. As a cooperative cloud computing platform, it provides solid infrastructure for the implementation of BRC-20 tokens, allowing AI technology to be applied across a broader spectrum of domains. This integration has carved new pathways for cryptocurrency payments and token transactions, injecting innovation and vitality into the digital economy and the financial ecosystem of the future.
The application of AI product use cases empowers the utility of AINN tokens. AINN tokens are gradually being endowed with new functional uses by AI project parties. For instance, AINN can be used as a medium of payment when users utilize the SDK of AIBS. Another project in the AINN ecosystem, AIL2, uses AINN as gas fees; users need to purchase AINN to pay for gas fees in order to complete contract interactions on AIL2.
Main risks: There are risks associated with the long-term application narrative, competition, and liquidity.