Bitcoin (BTC) has been hailed for its expanding range of applications made possible by its new “Ordinals” protocol. However, the introduction of these new types of transactions has led to discord among developers responsible for maintaining the network’s source code.
Critics argue that the inclusion of transactions beyond simple Bitcoin transfers is congesting the blockchain, causing difficulties for those seeking to utilize it for its original purpose. Ali Sherief, one vocal critic, expressed concerns about the abuse of Bitcoin’s system and recommended an upgrade in March to eliminate all transactions related to the new protocol. He believed that these “worthless tokens” were jeopardizing the smooth functioning of Bitcoin as a peer-to-peer digital currency.
The situation escalated further on May 9 when Bitcoin transaction fees surged to levels not witnessed since 2017. This increase was a consequence of a pseudonymous Twitter user’s development of the BRC-20 token standard, which enables the issuance of fungible assets on Bitcoin using Ordinals. This development sparked an influx of speculative memecoins built on Bitcoin, collectively amassing a market capitalization of nearly $500 million. Consequently, the number of Ordinals transactions skyrocketed and recently surpassed the 10 million mark.
The Bitcoin blockchain operates with limited storage capacity for recording transactions, resulting in settlement speeds of approximately 7 transactions per second. When the demand for transactions exceeds the processing capacity of new blocks, users must compete by offering higher transaction fees to incentivize miners to prioritize their transfers.
In light of these challenges, some developers, such as Luke Dashjr, argue that regular transactions should be given priority while categorizing other transactions as “spam.” Dashjr even created a tool called “Ordisrespector” for Bitcoin node operators to disregard problematic transactions of this nature. He emphasized that action should have been taken months ago, highlighting that spam filtration has been an integral part of Bitcoin Core from its inception.
However, many believe that the introduction of innovative applications should be celebrated, criticizing developers who attempt to discount transactions based on subjective disapproval. Jameson Lopp, co-founder of Bitcoin custody solution Casa, asserts that transactions should be deemed valid as long as users are willing to pay the associated fees. Lopp argues that critics essentially equate any form of auction to a denial of service, with the winning party denying the other participants, which he deems an inaccurate characterization.
Michael Saylor, a prominent Bitcoin billionaire and advocate, welcomes the emergence of Ordinals for the potential it holds beyond speculative tokens and assets. He envisions scenarios where assets like stocks and ETFs traded on NASDAQ can be tokenized using the BRC-20 standard, allowing individuals to have personal custody of their shares rather than relying on centralized custodians. Saylor believes that Bitcoiners would embrace such advancements if presented in this manner.
In fact, Stably has already utilized the BRC-20 standard to launch Stably USD (USD), Bitcoin’s first native stablecoin pegged to the US dollar.
In conclusion, the inclusion of Bitcoin’s new “Ordinals” protocol has sparked controversy among developers, with disagreements arising regarding its impact on the network. While critics express concerns over congestion and propose filtering certain transactions, others argue in favor of embracing innovation and allowing market forces to determine transaction validity. The ongoing debate underscores the challenges and divergent viewpoints surrounding the evolution of Bitcoin’s functionality.
Bitcoin (BTC) has been hailed for its expanding range of applications made possible by its new “Ordinals” protocol. However, the introduction of these new types of transactions has led to discord among developers responsible for maintaining the network’s source code.
Critics argue that the inclusion of transactions beyond simple Bitcoin transfers is congesting the blockchain, causing difficulties for those seeking to utilize it for its original purpose. Ali Sherief, one vocal critic, expressed concerns about the abuse of Bitcoin’s system and recommended an upgrade in March to eliminate all transactions related to the new protocol. He believed that these “worthless tokens” were jeopardizing the smooth functioning of Bitcoin as a peer-to-peer digital currency.
The situation escalated further on May 9 when Bitcoin transaction fees surged to levels not witnessed since 2017. This increase was a consequence of a pseudonymous Twitter user’s development of the BRC-20 token standard, which enables the issuance of fungible assets on Bitcoin using Ordinals. This development sparked an influx of speculative memecoins built on Bitcoin, collectively amassing a market capitalization of nearly $500 million. Consequently, the number of Ordinals transactions skyrocketed and recently surpassed the 10 million mark.
The Bitcoin blockchain operates with limited storage capacity for recording transactions, resulting in settlement speeds of approximately 7 transactions per second. When the demand for transactions exceeds the processing capacity of new blocks, users must compete by offering higher transaction fees to incentivize miners to prioritize their transfers.
In light of these challenges, some developers, such as Luke Dashjr, argue that regular transactions should be given priority while categorizing other transactions as “spam.” Dashjr even created a tool called “Ordisrespector” for Bitcoin node operators to disregard problematic transactions of this nature. He emphasized that action should have been taken months ago, highlighting that spam filtration has been an integral part of Bitcoin Core from its inception.
However, many believe that the introduction of innovative applications should be celebrated, criticizing developers who attempt to discount transactions based on subjective disapproval. Jameson Lopp, co-founder of Bitcoin custody solution Casa, asserts that transactions should be deemed valid as long as users are willing to pay the associated fees. Lopp argues that critics essentially equate any form of auction to a denial of service, with the winning party denying the other participants, which he deems an inaccurate characterization.
Michael Saylor, a prominent Bitcoin billionaire and advocate, welcomes the emergence of Ordinals for the potential it holds beyond speculative tokens and assets. He envisions scenarios where assets like stocks and ETFs traded on NASDAQ can be tokenized using the BRC-20 standard, allowing individuals to have personal custody of their shares rather than relying on centralized custodians. Saylor believes that Bitcoiners would embrace such advancements if presented in this manner.
In fact, Stably has already utilized the BRC-20 standard to launch Stably USD (USD), Bitcoin’s first native stablecoin pegged to the US dollar.
In conclusion, the inclusion of Bitcoin’s new “Ordinals” protocol has sparked controversy among developers, with disagreements arising regarding its impact on the network. While critics express concerns over congestion and propose filtering certain transactions, others argue in favor of embracing innovation and allowing market forces to determine transaction validity. The ongoing debate underscores the challenges and divergent viewpoints surrounding the evolution of Bitcoin’s functionality.