Michael Saylor, the executive chairman of MicroStrategy, says the company is investigating use cases for Bitcoin Ordinals.
Ordinals spark innovation in Bitcoin tokenization
Saylor exclusively revealed to Decrypt in an interview at Bitcoin 2023 in Miami that the software company is looking at Ordinals and evaluating its possibilities for application development.
The development of Ordinals in January, frequently used to build NFT-like assets on top of Bitcoin, sparked a new round of experimenting with the oldest cryptocurrency in the market.
An experimental framework for creating tokens on top of Bitcoin is one recent advancement that uses Ordinals. Early in March, the enthusiast for on-chain data who goes by the moniker Domo invented it. Since then, thousands of additional “BRC-20 tokens” have been produced.
Depending on who you ask, all those transactions are partially—or entirely—to blame for the increased transaction fees on Bitcoin. This has proved advantageous for Bitcoin miners, who receive transaction fees in exchange for helping to secure the network. However, a large portion of the community has expressed dissatisfaction over the fact that high fees make it difficult for users of BTC to use it as the peer-to-peer electronic cash system that Satoshi Nakamoto, the Bitcoin creator who goes by the pseudonym, envisioned.
Saylor stated that the debate over Ordinals is crucial because “Bitcoin miners have to be successful over the long term.” He continued by saying that creating software based on the features of Bitcoin might help increase the coin’s general acceptance among people, businesses, and governments.
Bitcoin Ordinals, commonly called Bitcoin NFTs, is a ground-breaking innovation rapidly gaining traction among blockchain aficionados. The Casey Rodarmor-founded Ordinals protocol, built on the Bitcoin blockchain, enables users to link digital content to the smallest divisible unit of 1 Bitcoin (satoshi).
Bitcoin Ordinals have one characteristic that sets them apart from conventional NFTs. Ordinals are discovered on-chain with the raw data directly written on the network. NFTs, on the other hand, are created independently as new tokens and may have files on different protocols.
Binance previewed intentions to list Bitcoin Ordinals on its NFT exchange earlier this month. The exchange sees the Bitcoin NFTs as a worthy inclusion and has aggressively grown its NFT marketplace services.