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

Victor

Recent Posts

Clanker Token Trading Volume Hits $59.8 Million High

Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…

12 minutes ago

Bitcoin Spot ETF Inflows Hit $1 Billion Led By BlackRock

Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…

35 minutes ago

New York Techie Bagged $72M from $15K Investment in Ethereum — Here’s How BlockDAG Can Offer Similar Jackpot

Discover the success story of a New York tech entrepreneur who made $72M from a…

1 hour ago

Best Altcoins to Buy Today: Qubetics Rides 1000x Potential to Hit $2.6M, Ethereum Stays Rangebound, Tron USDT Transactions Hit $52B

Discover the best cryptos to buy and hold today: Qubetics leads with 1000x potential, Ethereum…

3 hours ago

Trump Media Company Is Pushing New Venture For Crypto Service

With the platform facing a cracked whip, Trump Media company is expanding into new business…

4 hours ago

Crypto Advisory Council Now A White House Position Attracting Leaders

Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…

4 hours ago

This website uses cookies.