Bitcoin Ordinals — also referred to by some as Bitcoin NFTs — could reignite developer enthusiasm for Bitcoin and increase mining fees, according to crypto investment firm Grayscale.
In an April 27 blog post, “Market Byte,” the company suggestion Ordinal numbers provide two major benefits for the growth and development of the Bitcoin ecosystem.
“Serial Numbers are getting a lot of attention in the crypto ecosystem as it introduces NFT-like assets on the Bitcoin blockchain. Michael and our research team explore their potential in our latest Market Byte newsletter,” Grayscale tweet.
The first is a substantial increase in fees paid to miners. According to Grayscale, this has been happening since the agreement was launched in January.
“The introduction of Ordinals results in an increase in the total fees paid to miners(…) and enables the establishment of sustainable base transaction fees to incentivize miners.”
Grayscale believes this will ensure “continuous network security throughout the lifetime of the Bitcoin network.”
According to reports, in less than 2 months after its launch, the fees generated by the Ordinals inscription have paid out more than $600,000 to Bitcoin miners. At press time, the figure has now crossed the $6.5 million mark.
work costs gap Ordinal NFT more than blockchain Bitcoin | Source: Dune analysis
The investment firm also believes that Ordinals and the “speed of adoption of NFTs” could also attract new Bitcoin users and fuel further growth of the network.
“We believe the emergence of Ordinals has the potential to foster a community and growth-oriented culture that supports the Bitcoin network.”
On April 30th, Ordinals set a new record, reaching 300,000 daily inscriptions.
Around the same time, the number of bitcoin transactions was near multi-year highs, according to the blockchain data firm enter the block.
The rapidly growing ordinal number is the subject of controversy within the wider Bitcoin community. In it, bitcoin minimalists criticize bitcoin for straying from its original purpose as a peer-to-peer cryptocurrency and clogging up valuable block space.
One such critic is Blockstream CEO Adam Back, who claims that ordinal numbers are “useless” and that he “prefers Bitcoin as money.”
“You can’t stop them.” Wonderful! Bitcoin was designed to be censorship resistant, but that doesn’t stop us from commenting on the waste and stupidity of coding, at least doing something productive. On the other hand, this is another proof of block space consumption,” Adam Back tweet.
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As reported by Cointelegraph