Monero Ordinals, also known as Mordinals, have finally enabled nonfungible tokens (NFTs) on the privacy-focused blockchain. However, criticisms against Mordinals echo those levied against Bitcoin Ordinals, with concerns about privacy reduction, illegal content storage, and potential impacts on decentralization. Monero transactions are signed using “ring signatures” to bundle transactions with fake ones, which could make distinguishing actual transactions from dummy NFTs trivial if an attacker flooded Monero blocks with Mordinals. Another issue is that as the size of blocks increases, storage requirements for nodes also increase, potentially disincentivizing smaller nodes from staying online. While some people view NFTs as a threat to privacy, others recognize their potential value in protecting financial data while selling in-game assets. To counter privacy concerns, Cake Wallet’s Justin Ehrenhofer suggests limiting the size of the tx_extra field in Monero transactions to 256 bytes. This could increase the attack cost of flooding the network with dummy transactions while providing flexibility for future use cases. Ultimately, the debate on what to do with tx_extra has been ongoing for years, and the community has aligned itself with Ehrenhofer’s proposal. However, completely preventing users from storing arbitrary data on blockchains will never be possible.
Source: https://cointelegraph.com/news/controversy-over-privacy-as-monero-enables-nfts-through-mordinals
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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