The latest “gold rush” to register everything from profile pictures to memecoins has caused at least half a dozen blockchain networks to crack under pressure over the past week.
The last few days we have seen arbitration roomAvalanche, Cronos, zkSync and TON recently suffered partial or complete outages due to enrollment, with modular data availability network Celestia being the latest to go down, according to industry researchers who aware a screenshot of their block explorer on December 18.
Videos have also been published aware massive minting on the Celestia network.
"The team is actively investigating, but we can confirm that a sustained increase in registrations caused the sequencer to stop transmitting transactions correctly," Arbitrum confirmed on Dec. 16 amid a 78-minute outage.
Meanwhile, Cronos developer Ken Timsit reported The team implemented a network upgrade to enable dynamic transaction fees that change with transaction volume.
“The chain can now more effectively support traffic spikes like the one that occurred this week, caused by the high demand for registrations,” he said.
What is driving the gold rush?
Just like Bitcoin Ordinals, which allows data like text, images, and videos to be inscribed directly onto the chain, people have now realized that they can do the same on Ethereum and other EVM-based chains by inscribing data into the data. of transaction calls.
Cryptocurrency developer Shardul Mahadik explained:
“Inscriptions in Bitcoin are equivalent to writing in the smallest denomination of a bill (UTXO model). EVM inscriptions are the equivalent of the notes and comments field in a paid application. Where you make a transaction 0 and write data in the notes field. (accc model)”
In recent days, most of these have been BRC-20 type tokens, inspired by various collections such as Bitcoin Frogs and various new token tickers such as BMBI, BEEG and GROK according to the ordinal tracker. Ord.io.
Cryptocurrency researcher “cygaar” postulated that users send tokens and transfer transactions to themselves with call data because the operations are cheap.
They are being used heavily in an attempt to replicate the successes of ERC-20 on other chains, but much of the activity is coming from the same users repeatedly spamming small mints due to the lower cost of minting compared to contract interactions. intelligent.
The inscriptions have brought down several chains and caused huge gas spikes in recent days.
However, very few people really understand what is going on.
Here's a simple explanation of signups: how they work and why they get spammed everywhere: pic.twitter.com/IjQ6wuypRX
—cygaar (@0xcygaar) December 18, 2023
Eric Wall, Bitcoin developer theorized Earlier this month, EVM registrations could be seen as a way for retail to access small-cap crypto assets.
ICOs have been regulated and restricted and many projects start with limited token sales to venture capital firms or accredited investors.
“Burning gas/wasting block space is one of the last distribution mechanisms that exist with open access to retail,” he said. He described the inscriptions as “derived from BRC-20” and added:
“Since *anyone* can participate in the issuance of a specific ticker (mining it by burning block space) from day one, it is one of the few last bastions where retail can get in on the ground floor in a way it hasn't yet. is clear. illegally.”
However, Michael Rinko, an analyst at cryptocurrency research firm Delphi Digital, did not see the logic behind this. "I just see it as the new cool thing," he said. he told Bloomberg before adding: "There is no rationality behind this."
Related: Gas spent daily on EVM registrations rises to an all-time high of $8 million
Meanwhile, blockchain detective 'ZachXBT' warned about crypto influencers getting paid shitty shillings in a December 19 social media post.
"The market has been trending up for weeks, but you still have to resort to this to trade profitably," he said before adding: "This is your warning, so don't come crying if you get dumped."
Take note of influencers selling shilling coins with a market capitalization or liquidity less than their total number of followers.
The market has been trending up for weeks, but they have yet to resort to this to trade profitably.
This is your warning, so don't come crying to me if you get... pic.twitter.com/Z6n2wllM2w
- ZachXBT (@zachxbt) December 18, 2023
As reported by Cointelegraph on December 18 EVM registrations (Ethereum Virtual Machine) supported chains have increased in recent days.
According Dune analysisMore than $6 million was spent on registration gas on December 18, and a record $8.3 million was spent on registration on December 16.
However, on December 18, Polygon founder Sandeep Nailwal noted that minters were switching to Polygon due to its favorable gas rates.
Greater number of registrations in @0xPolygon Point of sale, 161m.
More than double the number of signups in the second ranked chain for signups.
The funny thing is that afaik gas rates still stayed below 10 cents, I heard horror stories that in some chains they were as high as $400. Top… pic.twitter.com/RC91DaOGhx
-Sandeep Nailwal | deep. polygon (@sandeepnailwal) December 18, 2023
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