Ordinals – The Controversial Service Doubling Bitcoin Inscriptions
The rise of Non-Fungible Tokens (NFTs) on the Bitcoin blockchain has ushered in a new era of creative possibilities for investment and ownership. Ordinals has made it relatively easy to use NFTs, and the service has gained immense popularity in a short time. The number of “inscriptions” on Bitcoin has almost doubled in just eight days, reflecting the exponential growth of the service. This article will highlight the recent controversy surrounding Ordinals, its impact on the Bitcoin network, and its contribution to the rise of NFTs.
Ordinals’ Bitcoin Inscriptions Doubled
Data from Dune reveals that the number of inscriptions on the Bitcoin network has almost doubled in just eight days, from around 2.6 million to 5 million. The service broke through the 1 million mark on April 8th, showing an exponential growth trend. Before February, the average Bitcoin user couldn’t use the service, so the number of subscriptions before that time was nil. It’s essential to know that encryptions include not only NFTs but also other tokens under the BRC-20 standard. This enables the minting of other shareable tokens on Bitcoin, making it a competitor for Ethereum.
Impact of Ordinals on the Bitcoin Network
Ordinals has caused a lot of controversy as it goes against Bitcoin’s original purpose of being a digital gold. Some Bitcoin proponents argue that minting other tokens diverts the network from its original purpose. However, Ordinals has shown immense influence, leading to increased network activity, which is positive for Bitcoin miners as transaction costs increase as well.
Controversy Due to High Costs
On April 23rd, transaction costs rose by a factor of 21, and the network was rumored to be under attack. The number of transactions still to be processed was so high that Binance temporarily blocked all withdrawals. This development caused a lot of concern, with many users questioning the impact of Ordinals on the Bitcoin network. The high cost of minting tokens has caused quite a stir among the community.
- Advertisement -
The Future of Ordinals
The rise of Ordinals on the Bitcoin network is proof that the blockchain industry is continually evolving, leading to new creative possibilities. While its impact on the Bitcoin network is still a contentious issue, its exponential growth shows promise for the future of NFTs on the Bitcoin blockchain. It’s essential to find ways to minimize the service’s impact on transaction costs while ensuring that the network remains secure and efficient.
The rise of Ordinals on the Bitcoin blockchain has raised few concerns in the community, primarily because many believe it goes against its original purpose. However, Ordinals has undeniably increased network activity, leading to higher transaction costs and concerns around security. The future of Ordinals on the Bitcoin network remains unknown, but its exponential growth promises to transform the NFT landscape in the blockchain industry.