NFTs that are stored on its own blockchain were introduced by the BTCUSD.
These NFTs can hold up to 4 MB of data, enabling the storage of short videos and even the Satoshi whitepaper on the blockchain.
Trustnodes reported that this could makeBitcoin a competitor to ETHUSD, which currently dominates the NFT market.
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Adam Back, CEO of Blockstream, said in a now-deleted tweet that it was fair game for miners to censor crap as a form of discouragement. He later retracted his statement, saying, I retracted deleted that because it was stupid and misinterpreted. Ordinals is using the NFT data to store the NFT data in the part of the transaction that holds segregated witnesses, resulting in a 75% reduction in transaction fees compared to other forms of data.
The creation of NFTs is very cheap, costing around $20, compared to the $140 it would cost inEthereum. The data is not required to be downloaded from a synchronizing node, so it does not need to be stored on the UTXO transactions memory part of a node.
The Taproot upgrade in 2021 made the NFTs a Satoshi, with their serial number used to distinguish them.
This was originally intended to allow smart contracts onBitcoin but is now being used to store pictures of the popular meme, Doge.
The NFTs are a long string of numbers and letters on the blockchain, which requires specialized software to translate into an actual image.
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Ordinal doesn't currently have a marketplace, and its website design has been criticized as being amateurish. It allows users to view the latest Satoshi JPEGs, which are paid for by miners for inclusion. Proponents argue that this is an inefficient way to store images because it benefits the network by adding to miner subsidies.
The author says that since these are immutable images, it is the most efficient way to store them for long-term accessibility, with miners unlikely to censor as they are paid fees. It is probably necessary for Blockstream products to have the feature changed, because that is something that may not be changed in the future. The highly controversial Segwit upgrade resulted in a 75% reduction in network fees for Doge DOGE USD pictures, but has not achieved much else.
These pictures have double the storage capacity of ordinary transactions, 4 MB compared to 1.8 MB, with Bitcoin developers privileging a use case they don't like.
This could add up to 200 GB of data per year, which could be significant without a proper pruning mechanism.
Satoshi-based assets, however, have not quite taken off, says the author. There have been many attempts to use Colored Coins, but the script language of Bitcoins is too limited to really do anything. The satoshi base of the asset requires specialized software, rather than just a Bitcoin wallet, which may have contributed to its limited adoption.
There is no marketplace on Ordinal for now, and uncertainty surrounding Blockstream's plans makes Ethereum a safer bet.
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