Grayscale just released an article revealing the positivity of ordinals for the Bitcoin network. This announcement has caused a significant spike in Bitcoin miner fees. It may also play a vital role in transforming the culture within the Bitcoin community.
According to the article, Bitcoin is on the verge of unlocking new potential. It is due to the invention of ordinals, a cultural layer innovation that works like NFTs. In December 2022, Casey Rodarmor, a Bitcoin developer, introduced ORD software, which created ordinals on the Bitcoin network.
The article stated that BTC’s smallest unit, satoshis, now has numerical values assigned to them called ordinals. This development enables the creation of unique assets on the Bitcoin network. ORD, a platform on top of a Bitcoin Core full node, allows users to add arbitrary data to BTC transactions and link them to specific satoshis. The crypto industry is fascinated by the rise of ordinals, with over one million inscriptions recorded as of April 8.
However, BTC adoption gets significant opportunities despite criticism of blockchain bloat and compromised fungibility. Ordinals create new possibilities for the network, departing from the traditional rigid blockchain system perception.
As per the article, Ordinals are making waves in the world of NFTs on the Bitcoin blockchain. Ordinals operate independently, unlike other NFT projects, like Rare Pepe Cards, which use the Layer 2 network Counterparty. They use Bitcoin network enhancements such as SegWit and Taproot to embed data within the witness segment of a BTC transaction.
Ordinals Boost Bitcoin Network in Two Key Ways
Ordinals could improve the Bitcoin network in two ways. The first is by increasing miner fees due to their surge in popularity. This increase provides a reliable and steady level of transaction fees to incentivize miners and maintain network security. The second way is by potentially bringing new users and developers into the Bitcoin community. Ordinals may attract those who previously disregarded BTC due to its perceived lack of progress.
Ordinals and Ethereum’s ERC721 standard have been compared, and the differences between the two are notable. Although Ethereum’s NFTs are the most common in the market, ordinals are simpler and more immutable since they are directly inscribed on the chain and not programmable.
Ordinals, despite being a recent development, have gained immense popularity, with over a million inscriptions in just four months. This unexpected surge indicates a shift in the perception of BTC and its potential beyond a rigid blockchain.
There are some concerns, but ordinals hold the promise of driving positive change within the BTC ecosystem. They may attract a wave of enthusiastic users and developers to embrace the BTC community’s cultural transformation.
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