Ordinals, or Bitcoin (BTC) NFTs, have existed since the beginning of this year. These have quickly become so popular that the network can hardly bear them. On the other hand, people are praising Ordinals for bringing a brand new feature to the Bitcoin network.
Bitcoin network clogged
The last week has seen the Ordinals skyrocket. In just eight days, the number of Bitcoin NFTs doubled from 2.5 million to 5 million. As a result, the network is having a hard time. There is even talk of an Ordinal blockage on the Bitcoin network. Transaction costs rose to new heights and even the speed of transactions declined due to the large number.
This has raised some concerns. Bitcoin proponents argue that virtual images on the Bitcoin network were never the intention. Satoshi Nakamoto, the anonymous creator of Bitcoin, only saw it as one peer to peer payment system. What would Nakamoto think?
As mentioned, the network is literally dealing with congestion. While it is indicative of Bitcoin’s current popularity, and could therefore perhaps be seen as a positive, it shouldn’t take too long. If these problems persist, it could render the Bitcoin network unusable. On May 7, the problems were so great that the exchange Binance temporarily stopped all BTC withdrawals.
Windfall for miners
The high transaction costs may be a nice windfall for Bitcoin miners. After a financially disastrous year, the miners can use the extra income. Another interesting argument made by an Ordinals advocate is that of freedom of speech.
An Ordinal is an inscription on a satoshi. A bitcoin consists of 100 million such satoshis. An inscription can take the form of an image, i.e. an NFT, but an inscription can also be in the form of text. A proponent of Ordinals points out that this is also a way to publish uncensored information on the Bitcoin blockchain, globally and forever.
There is a lot to say about it and its advantages and disadvantages. It is impossible to say how the current Ordinal madness will turn out. Either way, it’s a historic time for the Bitcoin network.