by Rebbeca Ren , NavigatorLabs
The Digital Matter Theory (DMT) is being increasingly applied to the issuance of digital assets in the Bitcoin ecosystem, and a digital world based on Non-Arbitrary Value is being rapidly constructed....
Remember our deep dive on Some Thoughts on $NAT and Digital Matter Theory? 🧐 While we spilled the tea on this groundbreaking theory, we get it – it can be a lot to digest without clear references and examples🤯
So, to make things super easy and engaging for you, we've whipped up a handy Q&A format! 📚✨ Get ready to unravel the magic of DMT and level up your crypto knowledge. Stay tuned! 🔥🚀
DMT was originally proposed by physicists, then gained attention in the blockchain technology community and began to be applied to the issuance of digital assets in the Bitcoin ecosystem.
For instance, in the real world, water comprises H2O, and gold is represented by Au; within the DMT framework, each digital asset is composed of specific elements on the Bitcoin block, with the rarity of these elements determining its value.
Digital assets based on the DMT framework try to get rid of the arbitrary value allocation of digital tokens. In comparison, the value of an conventional NFT (Non-Fungible Token) is usually subjective and not based on any clear or objective factors, so it is an arbitrarily assigned value.
NAT is a new type of token protocol issued based on the DMT framework, crafted from the identification of Bitcoin block data patterns. Acquiring NAT is akin to mining, extracting value from pre-existing block elements rather than being arbitrarily determined by a project owner.
$NAT is the first token under the NAT insurance protocol, setting the standard for mining block elements publicly. It is also envisioned as the settlement token for a payment system within the DMT digital universe.
Natcats is a popular NFT project under DMT and NAT, and the creation of Natcats signals the NFT 2.0 era is coming.
DMT and NAT are considered a miner ecosystem, and due to their "non-arbitrary" and "autonomous" nature, newcomers still have the opportunity to obtain their own digital assets by simply paying gas fees instead of purchasing on the secondary market .
Last but not least, you can mine your own non-arbitrary assets on Mscribe, or you can trade them on platforms like MagicEden, OrdinalsWallet, and OKX.
DMT was originally proposed by some physicists, who believed that digital information could be viewed as a digital substance similar to physical matter (such as wood or metal), predicting that the amount of digital information may exceed the number of atoms in the future.
The real world is composed of various chemical elements, and the periodic table of elements provides a theoretical basis for finding new elements in the real world. Scientists use the periodic table of elements to find new materials (such as semiconductors, catalysts, etc.) in a certain field to serve the construction of the real world.
Subsequently, this theory began to gain traction in the blockchain technology community and started to be applied to the issuance of digital assets in the Bitcoin ecosystem.
Digital assets based on the DMT framework attempt to break away from the arbitrary value allocation of digital tokens. For example, the value of conventional NFT (Non-Fungible Token) is usually subjective and not based on any clear or objective factors, so it is an arbitrarily assigned value.
In stark contrast, DMT digital assets focus on deriving non-arbitrary value from the data in the Bitcoin blocks themselves. For example, different blocks have different attributes and data, which also determines the value of NAT (Non-Arbitrary Token).
For instance, in the real world, water comprises H2O, and gold is represented by Au; within the DMT framework, each digital asset is composed of specific elements, with the rarity of these elements determining its value.
As aforementioned, NAT is a new type of token protocol issued based on the DMT framework, crafted from the identification of Bitcoin block data patterns. Unlike other tokens with arbitrarily set supplies, NAT issuance is intricately linked to Bitcoin blockchain data.
Acquiring NAT is akin to mining, extracting value from pre-existing block elements rather than being arbitrarily determined by a project owner. $NAT is the first token under the non-arbitrary token issuance protocol, setting the standard for mining block elements publicly.
The trajectory of blockchain evolution is marked by shifts in token issuance methodologies. Over the 15-year span since Bitcoin's inception, the crypto landscape has traversed various arbitrary token frameworks. These include the creation of new chains, deployment of smart contracts, and establishment of issuance protocol standards to secure minting rights. In these models, token quantities and unlocking methods were often dictated by chain developers, smart contract deployers, and protocol issuers, collectively termed as "arbitrary tokens" due to their human-controlled nature.
The Non-Arbitrary Token represents a revolutionary shift in token issuance methodologies over the past 15 years. Grounded in DMT, it secures minting rights through indexing native block data, optimally leveraging blocks' ledger capabilities. This approach delegates token issuance quantities and unlocking mechanisms to the most consensus-driven ledger mode.
The Bitcoin chain currently hosts 38 elements under the DMT framework. They are classified and organized in a manner similar to the periodic table of chemical elements and have been applied to some non-arbitrary assets. For example, both $NAT and NATCATS use the 11th element "bit", but in different ways: $NAT corresponds directly to the bit value, while NATCATS uses the "3b" pattern in the bit field.
Below, we will present the difference between $NAT and NATCATS in detail.
$NAT is the first fungible token based on the NAT issuance protocol. The amount of $NAT you have depends on the number of bits in the block; the more bits in the block, the more $NAT there is, and the $NAT cannot be tampered with.
As shown in the image above, when you inscribe the Json for deploying $NAT on block 817,824, according to the bits information of this block, you own 386,161,170 $NAT.
Currently, $NAT boasts a market value exceeding $40 million, positioning it in the early stages of its growth path. As the first token to have the characteristics including DMT, NAT, and block-native, $NAT is poised to become the universal token underpinning the digital realm shaped by DMT.
Looking forward, $NAT is envisioned as the settlement token for a payment system within the DMT digital universe. Ecosystem projects anchored in the DMT digital realm can leverage this transactional payment infrastructure. Market participants can also levy transaction fees in $NAT for their services.
Notably, on existing blocks, $NAT has already been inscribed and claimed, and for new blocks that have not yet been inscribed with $NAT, you must race against bots to get it inscribed and claimed.
Natcats stands as the inaugural NFT asset grounded in the DMT framework, heralding the dawn of the NFT 2.0 era. It garners attention for its rarity and non-arbitrary nature. Each Natcats possesses distinct attributes, autonomously derived from the Bitcoin blockchain.
The issuance of Natcats is contingent upon the presence of the "3b" pattern within the hexadecimal bit field of Bitcoin block data. This implies that Natcats exclusively manifest in blocks featuring this "3b" pattern (refer to the image below).
Therefore, before minting, you need to check whether the selected block contains "3b" in the Bits Field Value section; otherwise, you will not be able to mint a NATCAT. The image below shows a rare NATCAT with block number 829999 being sold for 1.3 BTC, as the 4 consecutive 9s triggered the rare trait of an alien fish.
According to TheBlockRunner, there are two types of tokens in the DMT framework: 1. Tokens with patterns; 2. Tokens without patterns.
Natcats belongs to tokens that require specific patterns and can only be inscribed on specific blocks, while NAT has no pattern requirements and can be inscribed on any block.
When the project was first launched in February, the minting cost of a NATCAT was only $3, but now in the secondary market, the floor price of a NATCAT is 0.06 BTC, a 1400x increase.
Natcats was created to explore the possibilities of autonomous creation through DMT, with the core belief that the digital universe should be free from human control. Similar to how weather, tides, and planetary orbits in the real world all move on their own.
The issuance quantity of all non-arbitrary assets in NAT is related to the number of blocks: if a new block is produced, then corresponding non-arbitrary assets will be generated. It is completely different from many existing protocols for arbitrary, subjective, manual issuance of digital assets.
This autonomous model is highly consistent with the decentralized, trustless approach of the Bitcoin ecosystem. The non-arbitrary expansion methodology ensures that latecomers will have access to these assets by simply paying some gas fee.
Take $NAT tokens for example, according to @GloryYeh's analysis:
Total $NAT supply = sum of bits on all blocks, currently ~344 trillion (~835,000 blocks x average of 4 billion bits per block)
Since the Bitcoin chain generates a block every 10 minutes, about 52,000 new blocks are added each year, but the bits on the blocks are decreasing. As shown in the chart below, the number of bits per 100,000 blocks is decreasing by about 2.81% (and is expected to decrease by about 1.4% per year).
Combining these two factors, $NAT has a certain amount of issuance, but since the number of new blocks added each year is basically stable and the number of bits will decrease each year, the expansion rate will decrease each year, from 4.8% in 2024 to 3.5% in 2028. This is more reasonable than the fixed expansion rate of 5% per year for ETH and DOGE.
Going back further, the issuance of NAT was about 10% in 2014, so the growth rate of $NAT is more in line with the transition of a country from a fast-growing developing country to a slow-growing developed country, and is more in line with the laws of economic development.
According to GloryYeh’s calculations, it is expected that by 2047, the total supply of $NAT will just reach the supply of $SHIB.
Take NATCATS as an example:
NATCATS is generated based on blocks with a "3b" pattern. @BitoOrdileone illustrates the intervals and number of times this pattern has appeared in Bitcoin over the last 15 years with a graph. The shortest interval was 440 days (over 1 year) and the longest interval was 3243 days (almost 10 years). Each time this pattern occurs, a fixed number of 2016 NATCATS are added. even if the next occurrence is 1 year from now, the total supply of NATCATS will only increase by 2016. Since blocks are generated every 10 minutes, each user has the opportunity to compete for this asset by paying some gas fee, ensuring fair participation for newcomers.
DMT and NAT stem from inherent patterns found in block data, resonating with miners who tirelessly mine each block to earn Bitcoin and transaction fee rewards. The duo come right in time, as it's anticipated that the miner ecosystem will be in urgent need of new streams of revenue, considering that Bitcoin halving will take place in late April.
@mythbtc's upcoming https://NATpool.space/ will display the NATS ($DMT-NAT and $DMT-BIT) and UNATS (Bitmap and NATCATS) generated from each block, combined with the asset prices at the time to calculate the revenue for miners mining non-arbitrary assets, and there are already miners mining related assets.
First choice for discovering DMT and NATS should be https://mscribe.io/, the official website launched by TheBlockRunner, the team that proposed the DMT in the Bitcoin ecosystem. You can inscribe new assets or conduct secondary trading on the official website.
For secondary transactions of DMT and NATS, it is also recommended to use platforms such as MagicEden, OrdinalsWallet, and OKX.
The DMT and NAT protocol have only been around for 5 months, but their development has been very rapid. Currently, surrounding only element 11 BITS, 318 non-arbitrary assets have been created, with FTs and NFTs accounting for about 3:7. The NFT-type assets, along with the popularity of NATCATS, have brought great prosperity to the DMT ecosystem.
If you also want to participate in the DMT ecosystem, you can obtain the current ranking list of NATS assets through https://mscribe.io/NATs, which will make it easier for you to filter by rank and number of holders. Of course, you also need to understand the relevant asset information through X, and the trading volume in the secondary trading market is also an important indicator for making better choices.
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