🔶Protocol overview

The TeleOrdinal protocol comprises four main components: the TeleOrdinal smart contract, the TeleportDAO Bitcoin bridge, the EVM bridge, and the Teleporter. These components collaborate to facilitate trustless trading of Ordinals between buyers and sellers, enabling buyers to acquire their desired Ordinals using ERC-20s from different EVM networks.

How does TeleOrdinal avoid market fragmentation?

The main marketplace contract resides on the Polygon network, while users can buy Ordinals from other EVMs, including Ethereum, BNB chain, Arbitrum, and Optimism. We keep the marketplace on one chain to avoid fragmentation of listed Ordinals, ensuring that buyers have access to all listed Ordinals from all EVMs. This means that they can pay with their desired ERC-20 token from their preferred network. Here, we use the EVM bridge to move buyers' buying requests from EVMs to Polygon.

Auction trading and buy-now trading

There are two primary options for trading Ordinals on TeleOrdinal: auction trading and buy-now trading. In auction trading, the seller lists the Ordinal by submitting information to the TeleOrdinal contract. A buyer then sends funds to the smart contract, which is locked for a certain period after the seller accepts the offer. Subsequently, the buyer receives the Ordinal at their Bitcoin wallet, and the Teleporter submits proof of Ordinal transfer, triggering the contract to release the buyer's funds to the seller.

In buy-now trading, the seller signs a PSBT transaction, enabling buyers to obtain the seller's Ordinal by paying the requested price. The Teleporter then lists the Ordinal on the TeleOrdinal contract. The buyer sends ERC-20 tokens to the TeleOrdinal contract, which are locked after acceptance of the offer by the Teleporter for a certain period. The Teleporter then completes the PSBT by sending BTC to the seller and the Ordinal to the buyer. Afterward, the Teleporter receives funds from the smart contract by providing proof of transfer, thus getting ERC-20 tokens.

In the following pages, we delve into each type of trading in more detail.

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