Battle Between BRC-20 Tokens-Ordinals Reignites

Crypto News – Both network fees and bitcoin are in high demand. Another conflict over the NFT-like Ordinals project and BRC-20 coins is being sparked by increased network congestion, in addition to investor excitement at Bitcoin’s recent run beyond $44,000—a 20-month high.

Battle Between BRC-20 Tokens-Ordinals Reignites

Ordinals continue to be at the center of controversy over what ought to be permitted on the Bitcoin network. Luke Dashjr, CTO of Ocean Mining and developer of Bitcoin Core, angrily denounced Ordinals inscriptions and their impact on the Bitcoin network on Wednesday.

‘Inscriptions’ are exploiting a vulnerability in Bitcoin Core to spam the blockchain. By obfuscating their data as program code, inscriptions bypass this limit.

Dashjr

Inscriptions linked to BRC-20, a kind of fungible token created on the Bitcoin network, have totaled more than 46 million since January. Wednesday saw the Ordinals BRC-20 token, ORDI, reach a new high of $68.37, demonstrating the ongoing appeal of Ordinals inscriptions. Today, ORDI is valued at $1.3 billion on the market. As of Sunday, CoinGecko estimates that ORDI’s market capitalization was $873 million.

Nick Hansen Disapproves Dashjr’s Ideas

Bitcoin miners and their supporters perceive Ordinals as a benefit to the network’s financial stability and refute the notion that Ordinal inscriptions are detrimental to the blockchain, despite Dashjr’s perception of them as spam.

The problem that I have with the way Dashjr described inscriptions as spam is his opinion. He might find that this extra data is not interesting, important, or valuable. But that doesn’t mean everybody does.

Luke is not the arbiter of what is considered spam and what is considered a quote-unquote valid transaction. That’s where my criticisms of his approach, or at least the way that he describes these types of transactions as being spam, is… because he’s arbitrarily applying what he thinks is spam because it happens to be something he’s not interested in or doesn’t approve of.

Nick Hansen, Luxor Technology founder and CEO

What are the Ordinals Inscriptions?

Digital assets written on a satoshi, the lowest unit of a Bitcoin, are known as Ordinals inscriptions. They were first introduced by fellow Bitcoin Core developer Casey Rodarmor in January. The November 2021 Taproot upgrade on the Bitcoin network made it feasible to inscribe media such as artwork and videos on individual satoshis.

But inscriptions’ growing popularity has also resulted in an increase in the price of transmitting a Bitcoin transaction, which Hansen noted is because of the spike in demand for instant block space. Critics see this elevated expense as a further justification for discontinuing the treatment.

With these transaction fees being high, it means that if somebody wants to send a transaction, it gets confirmed immediately. It will be more expensive, and if you aren’t willing to pay that extra fee, it will take longer.

Hansen