How Did Ordinals Change The Bitcoin Network?

09/27/2023

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Since the introduction of Ordinals to the Bitcoin network, many skeptics have talked about how Bitcoin-based NFTs will clog the network. But is this really the case? Glassnode's latest report takes an in-depth look at this aspect.

In its "The Week On-chain" report, analyst firm Glassnode noted the low likelihood of Ordinals clogging up the network.

“There is minimal evidence that inscriptions are displacing monetary transfers,” the report said.

The company attributes this to the low fees charged by the inscription holders. In this way, they also show their willingness to wait a long time for transaction confirmation. In fact, inscriptions take up the least amount of space in the blockchain than regular cash transactions.

Ordinals launched in early 2023 and since then they have been leading the Bitcoin network in terms of daily transaction volume. The new trend has fueled the demand for blockchain. Miner fees have increased due to this, and hash rates have jumped by 50%. However, this has only led to increased competition between miners.

Currently, most of the Bitcoin network inscriptions are BRC-20 tokens. Recently, Ordinals creator Casey Rodarmor proposed an alternative to BRC-20. Yet even though Glassnode's report proves that BRC-20 tokens are barely clogging the network at all, Casey has proposed a new standard that completely eliminates this problem. He believes that a protocol like Runes could be a great replacement for the BRC-20 standard. However, in a X conversation, he admitted that he's not sure if he'll pursue his idea. The Ordinals Show host Trevor Owens offered to give $100,000 from the Bitcoin Frontier Fund to developers who can launch Rune as Rodarmore's idea.

Open $100k investment offer in upcoming @BTCFrontierFund accelerator for first team who can get a working (not terrible) Rune indexer, issuance and/or transfer app, up live and running

Don't make the tickers required to be unique, will be a shit show

DM me. Serious offer. pic.twitter.com/6W0IwlhB9x
— trevor.btc (@TO) September 26, 2023

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