Bitcoin Developers Consider Restricting Ordinals And BRC-20 Token Operations
Key Points:
- The discussion about restricting the operation of Ordinals and BRC-20 tokens by Bitcoin developers is ongoing.
- Most developers predicted the prospect of a BTC crash, seeing little demand from the meme craze.
- Billions of dollars of transactions flooded the Bitcoin network in May, causing transaction fees to skyrocket and the network to become highly congested.
Bitcoin developers are discussing whether to regulate the code to prevent the operations of Ordinals and BRC-20 tokens.
WhaleWire tweeted that a code discussion of Ordinals and BRC-20 tokens by Bitcoin developers is ahead of fears of a BTC crash as the May meme craze gets too intense.
Bitcoin community members are still divided on whether Ordinals fit into the Bitcoin ecosystem. Advocates like Dan Held suggest that it offers more financial use cases on Bitcoin. In contrast, others say it is moving away from Satoshi Nakamoto’s vision of Bitcoin as a payment system, peer-to-peer cash. However, for now, we are seeing more risks than benefits from the explosion of this trend.
The BRC-20 (Bitcoin Request for Comment 20) token is a token created on the Bitcoin blockchain thanks to the Inscription mechanism and Ordinals protocol. This technique was created by an anonymous Twitter analyst named @domodata on 8/3/2023. He combined the Ordinals mechanism with the JSON data format text to make this BRC-20 token standard.
They jammed the Bitcoin network and pushed it to its operational limits, testing how the world’s first and largest blockchain can cope with the rapidly expanding demand. The cost to deposit funds is soaring, transactions are waiting longer, and some users and exchanges have begun to look at other options. That includes the Lightning network, a “layer 2” scaling solution designed to make Bitcoin transactions faster and cheaper.
Many Bitcoiners became frustrated when gas fees on the Bitcoin network skyrocketed amid a spike in transaction activity. The normal fee, which is set dynamically under a competitive bidding process, rose to a staggering $30.19 for a simple Bitcoin transaction on May 10, after hovering around $2 for almost two years from July 2021. Sometimes, the bidding fee can go up to 500 USD.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
Author
Bitcoin
Bitcoin Developers Consider Restricting Ordinals And BRC-20 Token Operations
Key Points:
- The discussion about restricting the operation of Ordinals and BRC-20 tokens by Bitcoin developers is ongoing.
- Most developers predicted the prospect of a BTC crash, seeing little demand from the meme craze.
- Billions of dollars of transactions flooded the Bitcoin network in May, causing transaction fees to skyrocket and the network to become highly congested.
Bitcoin developers are discussing whether to regulate the code to prevent the operations of Ordinals and BRC-20 tokens.
WhaleWire tweeted that a code discussion of Ordinals and BRC-20 tokens by Bitcoin developers is ahead of fears of a BTC crash as the May meme craze gets too intense.
Bitcoin community members are still divided on whether Ordinals fit into the Bitcoin ecosystem. Advocates like Dan Held suggest that it offers more financial use cases on Bitcoin. In contrast, others say it is moving away from Satoshi Nakamoto’s vision of Bitcoin as a payment system, peer-to-peer cash. However, for now, we are seeing more risks than benefits from the explosion of this trend.
The BRC-20 (Bitcoin Request for Comment 20) token is a token created on the Bitcoin blockchain thanks to the Inscription mechanism and Ordinals protocol. This technique was created by an anonymous Twitter analyst named @domodata on 8/3/2023. He combined the Ordinals mechanism with the JSON data format text to make this BRC-20 token standard.
They jammed the Bitcoin network and pushed it to its operational limits, testing how the world’s first and largest blockchain can cope with the rapidly expanding demand. The cost to deposit funds is soaring, transactions are waiting longer, and some users and exchanges have begun to look at other options. That includes the Lightning network, a “layer 2” scaling solution designed to make Bitcoin transactions faster and cheaper.
Many Bitcoiners became frustrated when gas fees on the Bitcoin network skyrocketed amid a spike in transaction activity. The normal fee, which is set dynamically under a competitive bidding process, rose to a staggering $30.19 for a simple Bitcoin transaction on May 10, after hovering around $2 for almost two years from July 2021. Sometimes, the bidding fee can go up to 500 USD.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
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