Ordinals has hit another record-breaking figure, with over 1,400 NFT-like transactions recorded yesterday.
Ordinals transactions on the rise
Ordinals, a new project that allows users to put NFT-like media assets on the Bitcoin blockchain, recorded its highest number of single-day mints yesterday with 1,401 Ordinals minted.
The unveiling of Ordinals has reignited a contentious discussion among the Bitcoin community regarding the integration of NFTs into the main network and its effect on the size of blocks and the validity of transactions.
The recent surge in Ordinals activity has also led to the highest average transaction fee on Bitcoin in the past month. The fees charged for Bitcoin transactions are based on the amount of data included in the transaction and the desired speed of completion. When traffic is heavy, users have the option to pay increased fees to prioritize their transaction processing.
The advent of Ordinals has made it possible to upload large files to the blockchain, made easier and cost-effective through the Taproot upgrade. This has sparked controversy among some members of the Bitcoin community who question the propriety of embedding digital assets into the Bitcoin blockchain through transactions.
Magic internet JPEG sparks controversy
One specific transaction created through Ordinals has recently caused a stir in the community. The mining pool, Luxor, successfully mined a block with a size close to 4 MB, containing 63 transactions. One transaction that stood out was the 3.94 MB Ordinal inscription, which contained an NFT image of a wizard.
The block #774,628, mined on February 1st, was a new record for Bitcoin, but it also sparked a heated debate. While some see it as an example of spam, others are concerned about the permanent nature of Bitcoin’s database and the potential dangers of preserving anything on a globally accessible platform.
The inscription of NFT images on Bitcoin’s blockchain has been a controversial topic, with opinions divided on the issue. Some members of the community expressed disappointment with the artwork in this NFT and criticized Luxor for its wasteful efforts.
Bitcoin-based NFTs are not new
While Ordinal-based transactions are not considered NFTs per se, they have re-ignited the debated around NFTs issued on the Bitcoin blockchain. Bitcoin-based NFTs are not a new concept. Bitcoin-based NFTs have existed since 2014, with projects like Counterparty and Stacks leading the way.
The launch of Ordinals has also revitalized the debate in the Bitcoin community about block sizes, legitimate transactions, and the inscription of JPEGs and other media on the main blockchain. The high transaction fees and the growing demand for NFTs on the network have led to a discussion about the need to increase block sizes or adopt other solutions to handle the increased traffic.
While some members of the Bitcoin community are skeptical about NFTs, others see them as a potential source of revenue for the blockchain. The surge in Ordinals activity suggests that there may be a growing demand for NFTs on the Bitcoin network, which could lead to increased revenue for the network and its participants.