Controversy continues to surround Ordinals, with its block space usage trending up again due to the release of notable collections and popularity of BRC-20 tokens. The potential competition for block space between Ordinals, BRC-20 tokens and purely monetary transactions could lead to high fees, reminiscent of the blocksize war. Additionally, Ordinals’ integration of Ethereum innovations, such as NFTs and tokens, could pose reputational risks to the Bitcoin protocol.
While some Bitcoin maximalists label Ordinals as a scam, the reality is that willing buyers and sellers exchange goods with informational symmetry without any claims made as to future price appreciation. However, the loss of user funds and illicit content risks associated with Ordinals are concerning, and the platform must communicate properly about Bitcoin’s uncensorable and permissionless structure.
One advantage of Ordinals is its possibility of pruning content from stored blockchain data, which resolves the blockchain file size bloat issue. While losses to cyber bandits or technical issues are likely to remain small compared to those experienced by other cryptocurrencies, the potential for high fees needs addressing.
One solution could be technologies such as RGB, Taro, and Stacks, which could offload Web3 transactions and data from the Bitcoin blockchain to Layer 2, freeing up block space and reducing fees. Though Ordinals has attracted a new set of young creative users to the Bitcoin space, the potential for high fees should not be overlooked.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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