Just when we thought that we are now only waiting for the last Bitcoin to be minted, a controversial new protocol was recently integrated into its platform and it’s garnering a lot of attention lately. Last Valentine’s Day, the network of the oldest and most successful crypto was flocked by Ordinal inscriptions, which garnered cheers from crypto fans but also consequently brought about congestion within.
On February 14, 2023, Ordinal inscriptions crossed the 100,000 mark as it pulled in digital creators. The flooding caused the standard 300 MB memory limit per block in the Bitcoin network to go over by 86 MB. The resulting scenario was that it forced the network to purge other transactions going below the 1.74 sats/vB (Satoshi per byte).
What are Ordinals?
The concept of NFTs in the Bitcoin blockchain is not entirely new since Colored Coins and Rare Pepes preceded the present Ordinals protocol. However, it’s only now that it would attract plenty of attention probably because a lot of people now have more familiarization and understanding of NFTs.
Ordinals are a new phenomenon on the Bitcoin blockchain. Basically, this new protocol allows non-fungible tokens (NFTs) to be embedded in Bitcoin transactions. To be exact, it enables the inscription of images and other forms of data directly in satoshis, which are the smallest denomination units of BTC.
Each satoshi is worth a hundred millionth of a Bitcoin (0.00000001 BTC). Without being too technical, an Ordinal can be entrenched in it without the need to create another token or a sidechain. Among the files successfully integrated into them by far are JPEG images, digital art, and profile picture (PFP) projects. Impressively, even the 1993 Doom video game has been fused into the same protocol.
Ordinal projects just came about in January this year. Now, it is seemingly experiencing a quick, widespread following as shown by the volume of inscriptions that transpired on the Bitcoin blockchain involving them.
Pros and Cons
The unorthodox process employed in Ordinals opens up new boundaries and opportunities to be explored in both the oldest successful cryptocurrency in the world and the realm of NFTs.
Normally, the metadata of NFTs like those found on Ethereum, Solana, and Stacks can be changed or removed by their smart contract creator. However, Ordinals work differently because they are not dependent on smart contracts. As mentioned earlier, they are affixed straight up in satoshis.
Ordinals are deemed immutable and permanently preserved within the Bitcoin blockchain. For this reason, every Ordinal is considered to be a “digital artifact” as it’s there to stay.
Despite its newly-unlocked benefits, there is still a lot to be explored in the Ordinance protocol. Currently, this kind of NFT requires syncing with the entire Bitcoin blockchain before its inscription. Support for the exchanges for digital artifacts and wallets that allow users access to their Ordinals is presently scarce, too. Lastly, it can cause the whole Bitcoin network to be overwhelmed in certain cases as exhibited in the latest Valentine’s Day incident.
All these are barriers that Ordinals developers are looking to address sometime soon.
Don’t Call Them Simply as “NFTs”
Speaking of “NFTs”, the team led by Casey Rodamor who came up with the Ordinals protocol wants to distance the two as much as possible. Although they are technically NFTs, the group prefers them to be called as “digital artifacts” or “Ordinal NFTs”. This is to avoid associating Ordinals with the controversial nature of NFTs in general as the term is thought to be “tainted” by Rodamor.
Final Thoughts
The true immutability and permanence of Ordinals within the Bitcoin blockchain sure do present a lot of potential in the realm of NFTs. However, it could also be a Pandora’s Box waiting to be unleashed if used in the wrong hands. For now, there is a lot to be explored in the protocol, and we are hoping that it will result in nothing but the best for everyone involved.