Understanding Ethscriptions in one article: principles and advantages and disadvantages

Ethscriptions: Principles, Advantages, and Disadvantages

As CMC and OKX release articles introducing Ethscriptions, the market is speculating whether exchanges will enter the Ethscriptions narrative. Crypto KOL CryptoDoctor has written a push analysis of the principles and advantages and disadvantages of Ethscriptions.

Ethscriptions are a new way of interacting with digital artifacts that has caught the attention of the crypto community. Unlike ERC-721 NFTs stored at the smart contract and token level, they are stored at the transaction level. You can create an Ethscription for the owner you want by combining a data URI with a 0 ETH transaction. When creating an ethscription, users convert an image to a Base 64 encoded data URI, which is then converted to hexadecimal format. This hexadecimal data is then included in the 0 ETH transaction sent to the desired recipient.

The hexadecimal data is stored in the calldata of the transaction, allowing the recipient to retrieve and interpret the data to display the ethscription. Calldata is one of three memory types in Ethereum, along with storage and stack memory. As a type of transaction, Ethscriptions are cheaper than NFTs. They can actually be traded on OpenSea, and you can check if they are much cheaper than the cheapest NFT collections. On the other hand, their composability is poor as they do not support smart contract logic. Interestingly, although Ethscriptions are becoming more and more popular, they are not new, as the first (or one of the first) can be traced back to 2016.

• Delphi Digital: Polygon releases new vision, intertwining OP/ARB stack and cross-chain security
• Speculation about the development of NFTs in the next two years: 99.999% of old NFTs will tend towards zero value, and Grail NFTs have the opportunity to outperform ETH.
• Conversation with Qi Zhou, founder of EthStorage: Data Availability and Decentralized Storage

Rock Ethscriptions is an example of sold-out Ethscriptions that highlights the demand and excitement around these digital “artifacts”. Apart from the hype surrounding Ethscriptions, there are also many criticisms. Their main criticism revolves around their immutability, as EIP-4444 may prune calldata older than one year.

Reference: https://twitter.com/0xCrypto_doctor/status/1675615974744113152

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