Bitcoin's Ordinals become a 'coin of the year'

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Bitcoin's Ordinals become a 'coin of the year'

NFT-like assets could be here to stay.

The Bitcoin network has been re-inscribed with one million NFT-like assets, as the popularity of the Ordinals protocol surges on the world's most valuable blockchain.

Ordinals use rose at the start of the month and closed at the million mark on Sunday.

Inscriptions' growing popularity a few months after their debut suggests the new asset class is here to stay, a fact that could have long-term implications for the Bitcoin network's financial health.

Since June 2022, Bitcoin has traded above $30,000 for the first time. The digital asset is up 80% this year.

The Defiant spoke to Alex Miller, head of the Bitcoin developer tooling firm Hiro.

Casey Rodarmor, a former Bitcoin core engineer, led the team that developed Ordinals and the protocol was first used in February to 'inscribe' data, such as images and videos, directly to the Bitcoin blockchain. Ordinals leverages upgrade that came to Bitcoin in 2017 and 2021, and has led to a debate over the proper use of the network.

They increase the fullness of each block that miners compete to append to the chain because Inscriptions take up storage space. Miners should be willing to invest in computing power and increase their odds of winning the mathematical lottery that grants them the privilege of appending the next block and earning the following bitcoin payout, and fuller blocks are worth more.

The Bitcoin-denominated reward for producing blocks halves every few years will matter a great deal, as Bitcoin-denominated reward for producing blocks are based on inscription-filled blocks.

Ordinals have attracted Ethereum-native projects like CryptoPunks to the Bitcoin network, but have also spawned grassroots collections like Taproot Wizards.

Miller said he is unable to say whether he will be fired, but added that he will be required to speak at his weekly press conference next week.