There have been some concerns over the launch of Ordinals on the Bitcoin blockchain. Experts fear NFTs and other files will flood the blockchain and increase transaction fees. However, there are also many reasons to embrace this change rather than oppose it.
Ordinals are the talk of the town in Bitcoin circles. It appears someone [finally?] figured out how to properly store files on the Bitcoin blockchain. As a result, the network blocks get fuller by “exploiting” the Witness signature space in every block. The development was initially scrutinized, although some people have come around to the idea.
Fuller and more giant Bitcoin blocks wouldn’t necessarily be ideal. As such, the occupation of Witness space per block will remain a hot topic for the foreseeable future. Per statistics shared by Pierre Rochard, Ordinals now take up roughly 50% of the space. That means many NFTs are generated on the network, although the concept also applies to other file types.
BREAKING: ordinal inscriptions are consuming 50% of #bitcoin block space pic.twitter.com/8n7sXpLcNB
— Pierre Rochard (@BitcoinPierre) February 6, 2023
Even so, one must wonder whether that 50% space occupation is bad. Overall, block space utilization has spiked a bit since Ordinals came to light. There is always some initial excitement over such developments, although the long-term viability of these NFTs remains uncertain. However, Rochard points out that higher utilization doesn’t lead to a higher median fee rate.
Median fee rate is down pic.twitter.com/hKaeYqpI3g
— Pierre Rochard (@BitcoinPierre) February 6, 2023
It may still be early to conclude the fees. However, it appears Ordinals’ initial “impact” isn’t as terrible as people expected. That situation may change, but it isn’t much of a concern for now. The actual impact will be noted when Ordinals start crowding out “normal” network transactions. That is, assuming that will ever happen.
In addition, the higher block utilization will lead to an additional Bitcoin chain growth of 210 GB per year. That may be a problematic aspect for everyone running a full network node. However, storage space becomes cheaper over time, and the chain will not get “enormous” either. However, processing the extra data may be tricky if one has slow internet connectivity.
A new pull request has been put forward to ensure pruned nodes remain viable regardless of Ordinals. In addition, the proposal aims to ensure these nodes don’t download witnesses (for assumed-valid blocks). There is a lot to figure out regarding this proposal, but developers want to allow for innovation.
Udi Wertheimer also weighed in on the debate, although in a more positive tone than some expected. He expects Ordinals / Bitcoin NFTs to become successful and increase miner revenue. In addition, there will be a higher demand for Bitcoin developers, and podcasters may get new sponsors. So it doesn’t appear there are any losers in this equation, assuming a viable ecosystem is created.
A successful ecosystem of Ordinals / Bitcoin NFTs means:
– Miners make more money
– Security budget increases
– Bitcoin devs become in-demand
– Bitcoin podcasters get new sponsors
– Speculators on-board to bitcoin/lightning walletsLiterally everyone wins. Let’s do this
— Udi Wertheimer (@udiWertheimer) February 7, 2023
Furthermore, NFT artists like Lucho Poletti favor the concept of minting and issuing NFTs on the most secure blockchain in the world. Ordinals can be another mainstream use case for Bitcoin, a concept that is rarely considered. Moreover, these are traditional NFTs. Instead, the project facilitates “inscriptions” to create true digital artifacts that are always on-chain.
The post Ordinals Have Virtually No Negative Impact On The Bitcoin Network So Far appeared first on CryptoMode.
Disclaimer
For paid/sponsored articles, FintechMode neither endorses nor takes responsibility for the accuracy, timeliness, quality, and content of said articles. The statements, views and opinions expressed in paid/sponsored articles are solely those of the content provider and readers are reminded that Cryptocurrency products are unregulated in most locations and can be highly risky. Do your own research and consult relevant financial experts before making any investment decisions. FintechMode will not be held accountable, either directly or indirectly, for any harm or loss that may stem from or be linked to the usage or reliance on any information, goods, or services mentioned on this page. If you have any concerns, please email [email protected] or refer to our Terms & Conditions
