Bitcoin is the world's first and largest cryptocurrency, which provides adecentralized, secure and immutable peer-to-peer payments network. However, Bitcoin's functionality is not limited to currency transfers; it canalso serve as a distributed state machine to support more complexapplications and smart contracts. One of Bitcoin's core technologies is theBitcoin Scripting Language, which is a stack-based programming languagethat allows users to perform various operations and logic on the Bitcoinblockchain. Using the Bitcoin scripting language, users can embed arbitrarydata or metadata in Bitcoin transactions. This is the so-called Bitcoininscription.

Bitcoin inscriptions have many interesting applications and stories, such asrecording the birth of Bitcoin, creating digital collectibles and tokens, etc.An important feature of Bitcoin inscriptions is that they are immutablebecause they are permanently stored on the Bitcoin blockchain, protectedby the consensus and security of the Bitcoin network. This makes Bitcoininscriptions of unique value and significance, as they can serve as proof ofdigital assets, identification of identity, transmission of information, etc. However, Bitcoin Inscription also faces some challenges and limitations such as:

High fees: Bitcoin lnscription requires transactions to be conducted on theBitcoin network, which means users need to pay Bitcoin transaction fees.which often depend on the network’ s congestion and the user’ s urgency.ln the case of Bitcoin network congestion, the fees for Bitcoin Inscriptioncan be very expensive, even exceeding the value of the inscription assetitself.

lnefficient transactions: Bitcoin lnscription requires transactions to beconducted on the Bitcoin network, which means users need to wait forBitcoin’s block confirmations, which often take 10 minutes or more. In thecase of Bitcoin network congestion, Bitcoin Inscription transactions cantake hours or even days to complete.

Limitedscalability: Bitcoin lnscription requires transactions to beconducted on the Bitcoin network, which means users need to adhere toBitcoin ’ s technical specifications and limitations, such as block sizetransaction size, scripting language, etc. These specifications andrestrictions limit the scalability and flexibility of Bitcoin Inscription, such asthe inability to support complex logic, interactions, and functionality.

Lack of standardization: Bitcoin Inscriptions does not have a unifiedstandard or protocol to define and manage them, but instead differentdevelopers and projects use different methods and tools to implement anooperate them. This has led to the fragmentation and non-interoperability of Bitcoin Inscription, such as the inability to be easily transferred andtraded between different platforms and wallets.

Solution

We propose the project Cipher (CIP), a protocol for creating and managingcross-chain inscribed assets on the Bitcoin blockchain. Designed for easycross-network transfer between BRC20 and ERC20 tokens.

interoperabilityby facilitatingCipher(CIP)enhancescross-chainunparalleled liquidity for these tokens. We hope to resolve some of theissues with Bitcoin Inscription. Increase the liquidity and accessibility ofInscription and ERC tokens in a secure and user-friendly way.

Objectives

The main goal of Cipher(CIP) is to leverage the advantages of EVM toprovide users with a secure, private and innovative digital asset platformwhile maintainingcompatibility and interoperability withBitcoinInscription.

lmplementing a compatible Inscription protocol

Cipher (CIP) implements a compatible Inscription protocol on EVM,allowing users to seamlessly transfer and trade lnscription assets betweenBitcoin and Ethereum while enjoying the advantages of both networksCipher(CIP)'s inscription protocol supports multiple types of inscriptions,such as pictures, text, audio, video, etc., as well as inscriptions in multipleformats, such as NFT, Token, certificates, contracts, etc. Cipher(CIP)'sinscription protocol also supports multiple ways of inscription, such asstoring data directly on the chain, storing data off the chain and storingindexes on the chain, storing hashes on the chain, etc.

Reduced fees and improved efficiency

Cipher(CIP) reduces user fees and improves user efficiency by conductinginscription transactions on EVM. Cipher(CIP) transaction speed isdetermined by the EVM network, which typically has block times of 15seconds or less. Cipher(CIP) transactions can also leverage the EVM 11 Cipher s second-layer solutions, such as Arbitrum, Optimism, Starknetnetwork’etc., to further reduce fees and improve efficiency.

Increased scalability and flexibility

Cipher(CIP) increases scalability and flexibility for users by runningInscription applications on the EVM. Cipher(CIP)'s inscription applicationscan use EVM's smart contract functions to implement complex logicinteractions and functions, such as auctions, lending, games, socialnetworking, etc. Cipher(CIP)'s Inscription application can also interact withother applications on the EVM network.

Inscription Agreement

Cipher (CIP) implements a compatible Inscription protocol on EVMallowing users to seamlessly transfer and trade lnscription assets betweenBitcoin and Ethereum while enjoying the advantages of both networks.

Cipher(CIP)'s inscription protocol supports multiple types of inscriptions,such as pictures, text, audio, video, etc, as well as inscriptions in multipleformats, such as NFT, Token, certificates, contracts, etc.

Cipher(CIP)'s inscription protocol also supports multiple ways of inscription,such as storing data directly on the chain, storing data off the chain andstoring indexes on the chain, storing hashes on the chain, etc.

Cipher(CIP)'s inscription protocol is based on a standard called ORC-69which is a universal protocol for creating and managing inscription assetson the Bitcoin blockchain. Cipher(CIP)'s inscription protocol has made someimprovements and extensions based on ORC-69, making it able to run onEVM and be compatible and interoperable with other applications andprotocols on EVM.

The specific functions of the inscription protocol are as follows:
Creation of inscription assets

Users can convert any type of data or metadata, such as pictures, textaudio, video, etc., into a unique inscription identifier (CID) through theCipher (CIP) inscription protocol, and Store it on the Bitcoin or Ethereumblockchain. Users can also set some properties and parameters forinscription assets, such as name, description, owner, expiration time, etc.

Transfer of inscription assets

Users can transfer inscription assets from the Bitcoin or Ethereumblockchain to another blockchain through the Cipher (CIP) inscriptionprotocol. Users only need to send a transaction containing the CID andtarget address of the inscription asset to complete the transfer of theinscription asset. The Cipher (CIP) inscription protocol will verify andsynchronize between the two blockchains to ensure the consistency anduniqueness of the inscribed assets.

Transfer of inscription assets

Transaction of inscription assets

Users can exchange or transfer inscription assets with other assets on theBitcoin or Ethereum blockchain through the Cipher (CIP) inscriptionprotocol. Users only need to send a transaction containing the CID of theinscription asset and the transaction conditions to complete thetransaction of the inscription asset. The Cipher (CIP) inscription protocol will match and execute between the two blockchains to ensure the securityand validity of the inscribed assets.

ORC-Cash protocol

Cipher (CIP) will provide an inscription bridge service, which is a relay noderesponsible for transferring and verifying inscription assets between Bitcoinand Ethereum.

Inscription Bridge uses a protocol called ORC-Cash, which is a protocol forcreating and managing cross-chain lnscription assets on the Bitcoinblockchain. Designed for easy cross-network transfer between BRC20 andERC20 tokens. Cipher(CIP) enhances cross-chain interoperability byfacilitating unparalleled liquidity for these tokens.

Our mission is simple: increase the liquidity and accessibility of BRC andERC tokens in a secure and user-friendly way. Through the ORC-Cashprotocol, lnscription Bridge can lock the inscription assets on the Bitcoinblockchain to a special address, and then generate a correspondinginscription asset on the Ethereum blockchain, or vice versa. InscriptionBridge can also verify the consistency and validity of inscription assets ontwo blockchains through the ORC-Cash protocol to prevent doublespending and fraud.

The operation of lnscription Bridge is maintained and supervised by agroup of nodes called Inscription Guardians. They are users who hold CIP tokens. They can participate in the consensus and governance ofInscription Bridge by staking Clp tokens, and at the same time obtaincertain benefits. Rewards and punishments.

lnscription applications

Cipher(CIP) supports a series of inscription applications, which are smartcontracts or decentralized applications that use inscription assets toprovide various services and functions. lnscription applications can useEVM's smart contract capabilities to implement complex logic, interactionsand functions, such as auctions, lending, games, social networking, etc.

lnscription applications can also integrate and collaborate with otherapplications and protocols on the EVM network, such as Uniswap,Compound, and others. The development and operation of the Inscription Cipher application is driven and supported by Cipher(CIP)'s community, whichprovides tools and resources to the community, such as developerdocumentation, testnets, reward programs, etc.

Market demand

Market demand for Cipher(CIP) comes from interest and demand forBitcoin lnscription, as well as interest and demand for digital assets.

Bitcoin Inscription is a method of storing data or metadata on the Bitcoinblockchain.

Digital assets are virtual assets created and managed using cryptographyprinciples and blockchain technology. They can have multiple attributesand functions such as currency, rights, certificates, and information.

Both Bitcoin inscriptions and digital assets have unique value and meaningbecause they serve as identity, expression, creation, communication, etc. inthe digital world.

With the development and popularization of blockchain technology, themarket demand for Bitcoin inscriptions and digital assets will continue togrow and expand, especially in the following areas:

(1) Digital collectibles

Digital collectibles are unique digital items created and managed usingblockchain technology.

They can be works of art, game props, sports memorabilia, etc. The marketsize of digital collectibles has exploded in the past few years, especially in2021, when digital collectibles transactions reached billions of dollars.

The market demand for digital collectibles comes from the love and pursuitof digital items, as well as the recognition and guarantee of the scarcity andauthenticity of digital items. Bitcoin inscription can be used as a method tocreate and manage digital collectibles. lt can take advantage of theimmutability and security of the Bitcoin blockchain to ensure theuniqueness and authenticity of digital collectibles.

(2) Token

Token is a digital representation created and managed using blockchaintechnology.

lt can represent a currency, a right, a certificate, a piece of information, etcThe market size of Token has also shown rapid growth in the past few years.especially in 2020, when the total market value of Token exceeded thelevel of USS500 billion. The market demand for Token comes from thedemand and use of digital representatives, as well as the exploration andinnovation of the flexibility and diversity of digital representatives. Bitcoinlnscription can be used as a method to create and manage Tokens. lt can

take advantage of the decentralization and openness of the Bitcoinblockchain to ensure the autonomy and interoperability of Tokens.

(3) Certificate

A certificate is a digital certificate created and managed using blockchaintechnology.

lt can prove an identity, a qualification, an achievement, a transaction, etcThe market size of certificates has also shown steady growth in the past fewyears, especially in 2020. The application scenarios of certificates covereducation, medical care, finance, etc.

Market size

Market size of Bitcoin inscriptions: According to data from , as of November2023, the total data volume of Bitcoin inscriptions has reached 1.2 GBwhich contains more than 1 million inscription assets, such as ordinals, satsrats, cats, etc. The total market value of these inscription assets hasexceeded USS1 billion. These data show that Bitcoin inscription has formeda large and active market, and there is still a lot of room and potential forgrowth.

Market trend

Market trends are mainly affected by the following factors:

(1) Development of blockchain technology

Blockchain technology is the foundation and driving force of Cipher(CIP)With the continuous development and innovation of blockchain technology.Cipher(CIP) will also improve and optimize its own Functions and servicessuch as supporting more inscription types and formats, achieving higherperformance and security, providing more functions and services, etc. Thedevelopment of blockchain technology will also bring more users and funds.expanding the market size and influence of Cipher (CIP).

(2) Demand for digital assets

Digital assets are the core and goal of Cipher (CIP). As the trend ofdigitization and decentralization continues to strengthen, the demand fordigital assets will continue to increase and diversify, such as more peopleWill want to own and trade their own digital identity, digital assets, digitalcontent, etc. The demand for digital assets will also bring more creativityand value, promoting the innovation and development of Cipher (CIP).

(3) Awareness of privacy protection

Privacy protection is the feature and advantage of Cipher (CIP). Asusers'awareness of the privacy and security of their data and assetscontinues to increase, the demand for privacy protection will continue toincrease and strengthen. For example, more people will want to conduct.safe and efficient transactions and verifications without revealing theirinformation. The need for privacy protection will also bring more trust andcooperation, enhancing the Cipher(CIP) community and ecosystem.

Unique positioning

Cipher (CIP) is a digital asset platform based on Bitcoin Inscription. lt takesadvantage of EVM to provide users with a secure, private and innovativedigital asset platform while maintaining compatibility and interoperabilitywith Bitcoin Inscription. Operability.

Cipher(CIP) is uniquely positioned to attract not only users who areinterested in Bitcoin Inscription but are not satisfied with the limitationsand inconveniences of Bitcoin Inscription, but also those who are interestedin Ethereum but are not satisfied with the limitations and inconveniences ofBitcoin lnscription.

Users who want to take advantage of the technology and potential ofBitcoin Inscription. Cipher(CIP) is also valuable in its positioning to provide seamlessly transfer and trade inscriptions between Bitcoin and Ethereumassets.

Cipher(CIP) technology also uses ZKP technology to achieve high-speed andlow-cost transactions and verification, protecting user privacy and security.Cipher(CIP) technology also provides some innovative functions andservices, such as Cipher cross-chain bridge, providing users with somecreative and valuable functions and services.

Unique positioning

Large market

The market advantage of Cipher(CIp) is that it can satisfy those who areinterested in the digital assets of Bitcoin Inscription and Ethereum, butwant to be able to create and trade various types and formats on a moreadvanced and flexible platform The needs and expectations of users ofinscribed assets.

Cipher(CIP)'s market advantage also lies in its ability to leverage the largeand active markets of Bitcoin inscription and Ethereum to attract and retainmore users and funds, forming a strong and stable community andecosystem.

About the Team

Cipher(CIP)'s team advantage is that it is composed of a group ofprofessionals from different fields and backgrounds, who have richexperience and knowledge, as well as passion and vision for Bitcoininscriptions and digital assets.

The advantage of Cipher(CIP)'s team is that it has good cooperativerelationships with some well-known institutions and organizations. Thesedata show that Ethereum has formed a large and active market, and thereis still a lot of room and potential for growth.

Ecosystem

The ecological advantage of Cipher(CIP) is that it can interact andcollaborate with the ecosystems of Bitcoin and Ethereum, using theresources and partners of the two networks to expand the applicationscenarios and influence of Cipher(CIP).

The ecological advantages of Cipher (CIP) enable it to seamlessly integrateand interoperate with other platforms and protocols in the field of digitalassets, such as unisat, ZKSwap, etc. The ecological advantages of Cipher(CIPalso enable it to establish and maintain a strong and active community andecosystem in the field of digital assets, allowing users to participate in thedevelopment and decision-making of Cipher(CIP) projects through votingand governance.

Total number of tokens

The total number of Cipher(CIP) tokens is 21 million. This number refers tothe total number of Bitcoin tokens to reflect the association andcompatibility of Cipher(CIP) with Bitcoin Inscription. The total amount ofCipher (CIP) tokens is fixed and will not be issued or reduced to ensure thescarcity and value of the tokens.

Token distribution

40% is used for public sale to raise funds from the community and users tosupport the development and operation of the Cipher (CIP) project. Tokensfor public sale will be released according to certain rules and schedules toprevent excessive circulation and volatility of tokens.

20% is used for teams and consultants to motivate the founders andpartners of the Cipher(CIP) project and promote the innovation and qualityof the Cipher(CIP) project. Tokens of teams and advisors will be locked andunlocked according to certain rules and schedules to prevent excessive concentration and abuse of tokens.

20% is used for ecological construction, rewarding developers andcontributors of the Cipher(CIP) project, and expanding the functions and services of the Cipher(CIP) project. Tokens for ecological construction willbe distributed and issued according to certain rules and standards toprevent excessive consumption and waste of tokens.

10% is used for reserve funds to deal with the future needs and risks of theCipher (CIP) project and ensure the stability and security of the Cipher (CIP)project. The tokens of the reserve fund will be used and managed accordingto certain rules and conditions to prevent excessive occupation and loss oftokens.

10% is used for community governance, allowing Cipher(CIP) projectcurrency holders and users to participate in the decision-making andmanagement of the Cipher(CIP) project, and realizing the decentralizationand autonomy of the Cipher(CIP) project. Community-governed tokens willbe voted and governed according to certain rules and mechanisms toprevent excessive control and influence of tokens.

Usecases of CIP token

Payment fees

Users can use Cipher(CIP) tokens to pay various fees on the Cipher(CIP)platform, such as fees for creating, transferring and trading inscribed assets,and using Cipher NFT, Cipher DAO, Cipher DEX, etc. Fees for features and services. Tokens paid for handling fees will be destroyed to reduce thecirculation of tokens and increase the value of the tokens.

Rewards

Users can obtain rewards of Cipher(CIP) tokens by using various functionsand services on the Cipher(CIP) platform, or participating in variousactivities and tasks of the Cipher(CIP) project, such as creating and tradinginscriptions. Asset rewards, as well as rewards for participating in CipherDAO and Cipher DEX. The tokens for obtaining rewards will be issued fromthe tokens of ecological construction to encourage users' participation anocontribution.

Participate in governance

Users can participate in the governance of the Cipher(CIP) project byholding Cipher(CIP) tokens, such as voting and decision-making on thedirection and strategy of the Cipher(CIP) project, as well as supervising andauditing the operation of the Cipher(CIP) project. and finance. Tokensparticipating in governance will be deducted from community governancetokens to reflect the rights and responsibilities of users.