Researchers at Binance say that ordinals could lead to a massive overhaul of the Bitcoin (BTC) ecosystem in the coming years.
Bitcoin ordinals allow users to inscribe digital data such as images and videos to a single satoshi, or an individual unit of BTC, to create the equivalent of non-fungible tokens (NFTs) on the crypto king’s network.
Since their popularization, ordinals have dominated the fee economy on the Bitcoin blockchain.
In a new report, Binance Research says ordinals are driving new developer communities into Bitcoin and bringing new life to an ecosystem that has previously faced uncertainty as to where future miner revenue will come from.
“The impact of inscriptions and BRC-20s on the Bitcoin network has been notable… Bitcoin’s mempool transaction count significantly exceeded past years’ levels and reached all-time highs in 2023, spurred by the activity from inscriptions and BRC-20s. Other metrics, like average block size and transaction fees, also experienced notable shifts.
Beyond metric changes, the most profound impact of inscriptions/BRC-20s on the Bitcoin ecosystem would be the increased motivation among the developer communities.
Numerous new builders have been attracted to Bitcoin, existing projects are updating more quickly, and various novel ideas are circulating within the Bitcoin community.
As such, we could witness a completely different Bitcoin ecosystem in the coming years. Some might argue these changes contradict BTC’s intended role as ‘hard’ money. However, continuous innovation is crucial for creating new, engaging use cases that can promote broad-based adoption. Thus, it’s intriguing to consider where Bitcoin could head next.”
At time of writing, Bitcoin is trading for $48,160.
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