Arthur Hayes and Domo Invest in Bitcoin Ordinals Wallet Oyl’s $3M Raise
BitMEX founder and American crypto billionaire Arthur Hayes recently participated in a pre-seed funding round for Bitcoin Ordinals wallet Oyl, alongside anonymous developer Domo. The funding round raised $3 million, with crypto asset manager Arca leading the investment. Other backers included Kanosei and FlamingoDAO.
Oyl: The In-Wallet Ordinals Trading Platform
Oyl is set to launch in the coming weeks as a Bitcoin wallet that offers “in-wallet” Ordinals trading. Ordinals is a technology that enables data inscriptions on individual satoshis, which are the smaller units of Bitcoin. With Oyl, users will be able to trade these inscribed satoshis directly within the wallet.
- Ordinals allows for NFT functionality on Bitcoin.
- Satoshis can have various data inscriptions, including images, videos, audios, and even games like DOOM.
This breakthrough innovation opens up new possibilities for Bitcoin as it expands beyond its traditional use as a store of value.
The Significance of BRC-20 Token Standard
Domo, the creator of the Bitcoin BRC-20 token standard, played a crucial role in enabling data inscriptions on satoshis. Similar to Ethereum’s ERC-20 standard, BRC-20 allows for the creation of tokens by inscribing data on satoshis. Although it lacks high-functionality smart contracts like its Ethereum counterpart, BRC-20 has gained traction and interest within the crypto community due to its open-source nature.
Bitcoin Ordinals in the Post-Halving Economy
As Bitcoin approaches its quadrennial halving event, Ordinals may become even more important in the network’s post-halving economy. The halving reduces block rewards for Bitcoin miners by half, resulting in a decrease in mining revenues and the issuance of new Bitcoin. However, historically, the price of Bitcoin tends to rise after halvings due to consistent demand.
- The upcoming halving is expected to occur on April 19.
- High institutional demand for Bitcoin following the launch of Bitcoin ETFs has contributed to its price reaching new all-time highs.
In this context, Ordinals transaction fees offer an alternative revenue stream for miners, accounting for about 20% of their total revenue. Additionally, the recent surge in sales of Bitcoin NFTs further demonstrates the growing interest in and potential utility of Ordinals within the crypto market.
The Booming Layer 2 Network and Bitcoin’s Functionality
Aside from Ordinals, Bitcoin has experienced significant development in its layer 2 network. These layer 2 solutions help scale and speed up transactions on the blockchain, providing functionalities similar to Ethereum. This expansion enhances Bitcoin’s commercial viability and potential use cases.
Hot Take: The Future of Bitcoin Ordinals
The investment by Arthur Hayes and Domo in Oyl’s funding round highlights the growing recognition of the potential value of Ordinals within the crypto industry. With Oyl’s forthcoming launch and its in-wallet trading feature, users will have direct access to participate in the emerging world of NFTs on Bitcoin.
As Bitcoin continues to evolve and adapt to changing market demands, innovations like Ordinals play a crucial role in expanding its utility beyond being a mere digital currency. The ability to inscribe data on satoshis opens up possibilities for unique and valuable digital assets, creating new avenues for creativity, investment, and decentralized applications.
With increasing institutional adoption of Bitcoin and the ongoing development of layer 2 solutions, the future of Ordinals and its integration into the broader Bitcoin ecosystem looks promising. As more developers and entrepreneurs explore the potential of BRC-20 tokens and Ordinals, we can expect further advancements in the NFT space on Bitcoin.
The collaboration between Arthur Hayes, Domo, and other investors in Oyl’s funding round reflects the collective belief in the transformative power of crypto technologies. The open-source nature of these innovations encourages collaboration and fosters a vibrant community that drives progress within the industry.
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