Rising Bitcoin Fees Prompt Renewed Battle Over Ordinals, BRC-20 Tokens
Bitcoin Network Congestion:
Bitcoin is experiencing increased network congestion, likely due to the recent surge in its price, which has reached a 20-month high of over $44,000.
Ordinals Project and BRC-20 Tokens:
The Ordinals project, similar to NFTs, involves inscribing digital assets on satoshis (the smallest denomination of a Bitcoin).
Bitcoin Core developer Luke Dashjr has criticized Ordinals inscriptions, claiming they exploit a vulnerability and spam the blockchain.
The popularity of Ordinals has led to an increase in Bitcoin transaction fees, as demand for block space has surged.
Taproot Upgrade and Inscriptions:
The Taproot upgrade, implemented in November 2021, enables inscriptions by allowing media like artwork and video to be inscribed on individual satoshis.
Impact on Transaction Fees:
The increased popularity of Ordinals inscriptions has contributed to higher Bitcoin transaction fees, making immediate confirmation more expensive.
Proponents' Perspective:
Proponents, including Luxor Technology founder Nick Hansen, see Ordinals as a positive use of Bitcoin block space, emphasizing its critical role in block space utilization for miners.
Ordinals BRC-20 Tokens:
Ordinals BRC-20 tokens, such as ORDI, have gained popularity and reached a market capitalization of $1.3 billion, indicating significant interest and value.
Critics and Calls for Action:
Critics argue that Ordinals misuse the Bitcoin network and have called for actions to block them.
Luke Dashjr suggested implementing "spam filtering" to block Ordinals transactions, emphasizing that action should have been taken earlier.
Bitcoin Knot Protocol:
In 2011, Luke Dashjr launched the Bitcoin Knot protocol, a version of Bitcoin Core designed to modify transactions and exclude non-financial transactions and extra data like inscriptions.
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