- Growing Popularity of Inscriptions: Inscriptions on Ethereum Virtual Machine (EVM) chains, particularly on Polygon, have seen a significant rise, accounting for a substantial portion of transactions.
- Concerns and Challenges: While EVM inscriptions have gained traction, they raise concerns about scalability and compatibility, challenging traditional EVM design principles.
Inscriptions: A New Trend in EVM Chains
The world of blockchain technology is witnessing a notable shift with the rising popularity of inscriptions on Ethereum Virtual Machine (EVM) chains. This trend, especially pronounced on the Polygon network, represents a significant development in blockchain transactions.
1/ Inscriptions have gained traction on EVM chains over the past month, most notably on Polygon where they account for 20% of gas spent & 72% of transactions 📝
more below pic.twitter.com/1s78sUqyik
— hildobby (@hildobby_) December 6, 2023
Polygon at the Forefront of Inscription Adoption
According to data analyst Hildobby from the crypto-native venture capital firm Dragonfly, inscriptions have recently surged in popularity on the Polygon network. These inscriptions have come to represent a staggering 72% of total transactions on Polygon in the past week. This trend is partly attributed to the influence of POLS Market, a Polygon-focused inscription marketplace.
How Inscriptions Work on EVM Chains
Inscriptions on EVM chains function by embedding small amounts of metadata within the call data of a blockchain transaction. Similar to Bitcoin Ordinals, these inscriptions effectively create smart contract-based non-fungible tokens (NFTs). They offer a unique way to store and represent digital assets on the blockchain.
Rising Popularity and Emerging Concerns
While the concept of EVM chain inscriptions has gained traction, it also brings forth several concerns, particularly regarding the scalability and the broader impact on the blockchain’s ecosystem. Hildobby points out that inscriptions challenge core EVM design decisions, with gas costs being the only apparent benefit. This benefit comes at the expense of indexing challenges, non-compatibility issues, and integration hurdles.
The Impact on Gas Fees and Market Dynamics
Inscriptions have peaked in terms of gas fees, reaching around $800,000 two weeks ago before witnessing a slight retreat. This high level of activity, particularly on the Polygon network, underlines the growing interest and potential impact of inscriptions on the market dynamics of EVM chains.
The emergence of inscriptions on EVM chains, especially on Polygon, marks a significant evolution in blockchain technology. While they offer new possibilities for digital asset representation and transaction, they also raise essential questions about the future scalability and compatibility within the broader blockchain ecosystem. As this trend continues to develop, it will be crucial to address these challenges to fully realize the potential of inscriptions in the evolving landscape of blockchain and cryptocurrency.