The Rise of x402 Protocol Meme Coin PING: Recreating the BTC Inscription Craze

The emergence of the x402 protocol Meme coin PING has sparked heated discussions in the market, with many comparing it to the BTC inscription craze of 2023. So, what similarities exist between the two? Will PING evolve along the trajectory of the inscription market? The answer is yes. Let’s delve into the logic behind it:

The Core of Similarity: On-chain Legal Data and Off-chain Interpretation Rights

The operation mechanism of inscriptions is that users send transactions to the BTC mainnet and hold specific UTXOs. However, the BTC mainnet itself does not have the ability to determine the validity of transactions. The Ordinals protocol acts as a third-party arbiter, scanning all transactions on the chain and determining valid inscriptions based on custom rules (such as “First is First”).

The operational logic of PING is strikingly similar. Users send USDC to a specific address on the Base chain, and this process is essentially a “payment request” to the x402 protocol. However, for the Base chain and the x402 protocol, this is merely an ordinary ERC20 transfer.

What truly gives this transaction the “minting significance” is the x402scan indexer. It scans all USDC transfers on the Base chain to a specific address, determines valid minting according to preset rules (1 USDC = 5000 PING), and then records it in an off-chain database and distributes tokens through a contract.

Controversy and Value

The inscription was initially resisted by the Bitcoin Core team because it seemed to have no value other than accumulating a large number of dust transactions on the BTC mainnet. The logic of PING's existence is quite similar. However, as an open standard, the x402 protocol, even if unpopular in the short term, is difficult to prevent from developing.

It is worth noting that the assets involved in inscription transactions still exist on the BTC mainnet, while the minted funds for PING go directly into a designated treasury wallet. Although this practice has sparked controversy, it can also be viewed as a “charge” action, helping to enhance the exposure and传播价值 of the x402 track. It creates use cases for the x402 protocol and serves as a stress test for the protocol, potentially becoming an opportunity to foster a series of improvements and ecological prosperity.

Future Evolution

The core of PING lies in the x402scan indexer. However, it has many issues: assets are held under centralized entities, which goes against the original intention of the x402 protocol to open payment channels for AI Agents; it may not be seamlessly compatible with other x402 protocols; and there is a lack of unified standards for operations such as minting, transferring, and burning.

Therefore, we have reason to believe that more self-proclaimed “orthodox” new “inscriptions” will emerge in the future. They may improve the custody methods, change the form of transaction minting, or gain support from native protocols, among other things. Even in extreme situations, such as the x402scan protocol running away or the Treasury absconding with funds, it would be difficult to stop the rise of this trend.

Conclusion

The outbreak of x402 narrative has become a foregone conclusion, and PING is merely the clarion call. The subsequent evolution of the market may show a trend of diversification. Although these views are for reference only and do not constitute investment advice, we need not be overly anxious. The upcoming market hotspots are worth paying attention to and participating in.