Bitcoin Ordinals are on the rise and gaining attention from the tech and crypto communities alike. The new protocol from software engineer Casey Rodarmor was launched on January 21 and uses a different set of rules for minting, tracking and transferring non-fungible tokens (NFTs) compared to Ethereum-based tokens. Each NFT is minted on one satoshi (1 BTC = 100,000,000 Satoshi) and issued in Bitcoin, making it natively viable on the blockchain. The protocol leverages Bitcoin’s SegWit 2017 upgrade and its Taproot 2021 upgrade as well, proving to be a big draw for crypto enthusiasts.

However, there have been some discerning user reactions, with some excited by the new technology and others completely rejecting it. At the time of writing, 6,411,426 Ordinals have been minted, with users able to see the cryptographic number of the token in existence. Despite its growing recognition, Arthur Mow, Former Blockstream CSO, stated that Ordinals and Bitcoin applications such as BRC-20 are unsustainable. He believes that these use cases are money grabs, with no way of being sustained over the years.

Mow further added that mass adoption of Bitcoin will take place due to its use as a saving technology and a medium of exchange, not due to token minting. He mentioned that the fees for minting tokens will ultimately go to miners, which is not a sustainable option. It is clear that the current use of NFTs can’t be continued without major implications in the long run.

Meanwhile, BRC-20 are also experiencing a quick influx of users, but their capitalization is still very low compared to ERC-20 tokens. It is currently an experiment, with users transferred tokens through a JSON file that functions as a token contract. It is still a basic standard compared to ERC-20, but there is potential for it to grow and adapt over time.

Overall, there are the signs that the crypto markets are beginning to move and pay more attention to Bitcoin. However, while Ordinals and BRC-20 are enjoying their niches in the system, users need to be aware of their futuristic sustainability before investing in them. With Bitcoin as the mothership of the cryptocurrency movement, it has slowly been building up its own ecosystem of tools and services, and Ordinals and BRC-20 are just two potential applications of many.



Other News from Today