Bitcoin Marks 1st Anniversary of Ordinals: 48M Milestone Achieved
On Dec. 15, 2023, the Bitcoin blockchain reached a significant milestone with 48 million Ordinal inscriptions, just a day before the anniversary of the first inscription. These inscriptions have proven their longevity and now make up half of all BTC transactions confirmed daily.
The Journey of Ordinal Inscriptions
The journey of Ordinal inscriptions began on Dec. 16, 2022, when the first-ever inscription was created on Bitcoin’s distributed ledger. These inscriptions have gained immense traction in 2023, impacting Bitcoin’s ecosystem and competing with other blockchains in the non-fungible token (NFT) space.
The Role of Key Network Upgrades
The viability of Ordinal inscriptions has been made possible by key network upgrades such as the Segregated Witness (Segwit) protocol in 2017 and the Taproot upgrade in 2021. The Taproot upgrade enabled more intricate transactions and the integration of additional data within a transaction, which is essential for the Ordinal inscription process.
Facilitating Unique Non-Fungible Entities
The essence of the Ordinal inscription process lies in embedding the digital asset’s data into the transaction’s witness section, transforming satoshis into unique, non-fungible entities. This innovation has also facilitated the creation of fungible tokens known as BRC20s. Currently, there have been 48,054,267 inscriptions recorded on the chain.
Record-breaking Transactions and Controversy
The surge in inscriptions has led to new records in Bitcoin’s daily transaction count, with inscriptions accounting for 40-50% of the daily transactions processed by miners. However, the introduction of Ordinals and BRC20s has sparked controversy within the Bitcoin community, with some enthusiasts arguing that the blockchain should only host financial transactions.
Challenges and Competition
The inscription trend has resulted in an increase in onchain BTC fees and congestion in the mempool, with over 200,000 unconfirmed transactions waiting for confirmation from miners. In the realm of NFT sales, Bitcoin has emerged as a strong competitor, surpassing Ethereum in NFT sales in November and continuing this trend into early December. Bitcoin-based NFT collections are also dominating the top ten weekly sales.
Hot Take: Bitcoin Inscriptions Reach Impressive Milestone, Signalling Growth Potential
In just one year, Bitcoin Ordinal inscriptions have surpassed expectations and become a significant part of the Bitcoin ecosystem. The milestone of 48 million inscriptions confirms their longevity and impact on BTC transactions. Despite controversy and challenges, these inscriptions have driven Bitcoin’s daily transaction count to new heights and established Bitcoin as a strong competitor in the NFT space. As the inscription trend continues, it opens up new possibilities for growth and innovation within the blockchain industry.
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