The most well-known cryptocurrency, Bitcoin, has always been synonymous with simplicity and resilience. However, by adding a new protocol, Ordinals has begun to redefine the Bitcoin landscape, bringing advantages and disadvantages and sparking intense debate among community members.
According to data from BRC-20.io, in six months, the number of Ordinals has grown from one to 10 million. Currently, there are more than 25 000 Bitcoin-based tokens.
Advantages of NFTs in Bitcoin
The emergence of Ordinals has led to new use cases in the Bitcoin network. Traditionally, Bitcoin has been used primarily for value transactions. But with Ordinals, it is possible to inscribe data on the Bitcoin blockchain, which has enabled the introduction of Non-Fungible Tokens (NFTs) into the Bitcoin network.
This feature was previously exclusively associated with Ethereum. This innovation has broadened Bitcoin's usability and potentially increased its appeal to a broader audience.
In addition, adopting Ordinals could result in an economic boost for Bitcoin miners. With competition for block space increased by data enrolled in satoshis, network fees have increased.
While this is a disadvantage from a user perspective, some supporters of Ordinals argue that it could benefit miners. As block rewards decrease over time, network fees could become the leading financial incentive for miners, incentivizing them to maintain the security of the blockchain network.
What worries us?
The introduction of Ordinals, however, has also brought several challenges. One of the most significant is the impact on transaction fees. With the inclusion of additional data in transactions, Ordinals has intensified competition for space on the blockchain, which could result in higher transaction fees. This fee increase could affect the accessibility and efficiency of the Bitcoin network, especially for lower-value transactions.
In addition, there are concerns about whether the inclusion of NFT and other data in the Bitcoin network represents a departure from the original purpose of Bitcoin. Bitcoin was conceived as a simple, secure way to store and transfer value.
Undoubtedly, Ordinals has brought innovation to the Bitcoin space, but it has also sparked intense debate about the future direction of this iconic cryptocurrency. Moreover, this debate illustrates a broader discussion about the future of Bitcoin and blockchain technology in general.
Should Bitcoin maintain its simplicity and focus on value transfer, or should it evolve to encompass new functions and use cases?