With the creation of the new Ordinals protocol has sparked differences of opinion between the more conservative and purist Bitcoin advocates and the rest of the community. Why so much controversy if Ordinals is not the first NFTs project in Bitcoin. Unlike previous NFTs projects in Bitcoin that were protocols built on top of Bitcoin but had their non-fungible tokens (NFTs) stored on private servers, Ordinals generates these "digital artifacts" natively on Bitcoin's main blockchain. Ordinals uses the same block space as Bitcoin, but does not accumulate too much data in it allowing to store files of any type (audio, images, etc.) within a block on the Bitcoin mainnet as long as it does not exceed 4 MB of available space in that block.
BTC founder Satoshi Nakamoto originally intended for small transactions to take place on his blockchain, but as we know from former Bitcoin Core contributor Peter Todd, scalability issues caused by the amount of transactions taking place on the blockchain keep the debate going about how much space should be dedicated to each transaction. To solve this problem, Rodarmor created Ordinals that would create a DNS-like service and allow the transfer of individual satoshis from one project to another in a small block space.
The Ordinals protocol is based on the BTC protocol and works like Bitcoins, but with an extra layer that allows inscriptions. This extra information can be encrypted or in plain text, which makes Ordinals different from regular Bitcoin transactions. The Ordinals protocol extends the use cases of BTC by allowing users to enroll additional information into the Bitcoin blockchain that is not possible with regular Bitcoin transactions. The Ordinals protocol makes it possible for digital assets to have transparency and accessibility while providing projects with a way to issue their own tokens on the Bitcoin network. Ordinals therefore allow users to store asset tokens and other digital assets on the same network as Bitcoins, while providing more transparency and accessibility than regular bitcoin transactions.
This new project takes advantage of the scripting changes brought about by the Taproot update (implemented in late 2021 on the Bitcoin network), where the limit that existed for loading information into the witness section of each new block on the blockchain was removed. Ordinals assigns consecutive numbers to the smallest unit into which a Bitcoin can be divided, satoshis (1 satoshi = 0.000000001 BTC). Each satoshi can be associated with what are known as "inscriptions" which are the data that are stored as NFTs in the blocks.
Ordinals employs similar concepts to previous projects such as Colored Coins and Mastercoin the big difference being that it uses the Bitcoin block space to create "NFTs". Casey Rodarmor, the creator of Ordinals, recently stated that in the event of another Bitcoin network update it is unlikely to cause or exist any problems with the protocol.
Author's Opinion on Ordinals: I generally try to be unbiased in all my articles, but it would not be "politically" correct not to express my opinion. In a previous installment "Why should those of us who use cryptoassets know about the Mempool?" user @Dave-Sawyer (whom I recommend because he has very good articles) asked me - "are NFTs inside BTC good or bad?". - I answered him (and it is the position I still hold) - ".... As a negative aspect I consider that they slow down the network quite a bit, on the positive side they could bring more Bitcoin adoption...", time will tell if Ordinals was a revolutionary idea or just "messed up" the Bitcoin network.
Tools, Platforms and Applications:
Note: Related to the links, what is marked in parentheses are the invitation or referral codes that in some cases are necessary to receive the reward or bonus. The promotions offered by the different tools, applications and platforms tend to vary over time, I recommend that you do your own research.
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“Everyone has their own forms of expression. I think we all have a lot to say, but finding ways to say it is more than half the battle" - Criss Jami (existentialist philosopher, poet, essayist, musician, singer, designer and lyricist).
"Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth" - Marcus Aurelius (Roman Emperor).
"You will ask yourself: And if I take a risk and lose...? I will ask you: AND IF YOU RISK AND WIN? Success begins with thought, because sooner or later the man who wins is the one who believes he can do it. Do not be afraid of mistakes or failure, winners are not afraid of losing, losers are, in most cases the risk comes from not knowing what you are doing, so trust yourself, learn, be patient, manage your emotions and above all, enjoy the journey, what the wise man does at the beginning, the fool does at the end" - Anonymous.
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Author's Note: The opinion expressed here is not investment advice, is provided for informational purposes only, and reflects the opinion of the author only. I do not promote, endorse or recommend any particular investment. Investments may not be right for everyone. Every investment in the market and every trade you make involves risk, so you should always do your own research before making any decision. I do not recommend investing money that you cannot afford to chair, as you could lose the entire amount invested.
