Have you heard about Ordinals? They’re digital assets that are written on satoshis, which are the smallest denomination of Bitcoin. On February 13th, the number of Inscriptions using Ordinals surpassed 100,000 as users flooded the network with images, video games, and other content. The Inscription process involves inscribing the data of the content stored into the witness of the Bitcoin transaction.
What are Ordinals?
So, what exactly are Ordinal Inscriptions? They’re digital assets written on satoshis, named after the creator of Bitcoin, Satoshi Nakamoto. The Taproot upgrade launched on the Bitcoin network on November 14th, 2021, allows inscribing on satoshis, and it also enhances privacy and reduces the amount of data needed to make complex transactions, thus lowering transaction costs.
The concept of Ordinals takes the idea of NFTs to the next level. Bitcoin developers have been working to bring NFTs to the number one blockchain for almost a decade now. However, the Ordinals concept represents a significant breakthrough in digital assets.
Developers are working on creating more seamless methods of inscribing on Bitcoin, and wallets that make it possible to view the Bitcoin NFT once it’s created. At NFT Bridges, we’re thrilled to offer this service and looking forward to the continuing innovations surrounding this technology.
Revival of Interest in Bitcoin Development
Research firm FSInsight has published a report stating that the Ordinals protocol, which allows non-fungible tokens (NFTs) to be stored on the Bitcoin blockchain, has increased average block size and led to a revival of interest in Bitcoin development. Despite concerns about bloat, the benefits to the network have become apparent, with the protocol offering a potential source of demand for block space while the digital asset “travels up the adoption curve as money.”
FSInsight believes that NFTs on Bitcoin could fuel the next bull run for the cryptocurrency, as the excitement surrounding the tokens has led to an increase in average block sizes, which translates to higher fees per block. However, the report also notes that the blockchain needs to create a sustainable demand for block space to ensure the security of the network.
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