Did you know that the Bitcoin blockchain has NFTs?
A new innovation is sparking debate within the Bitcoin community.
A #Binance Research Thread đ§”đ
1/ Historically, the #Bitcoin blockchain has been reserved exclusively for payments. Blockchain primitives such as NFTs havenât existed on the Bitcoin blockchain. Users who have wanted to access #NFTs primarily use smart-contract platforms such as BNB Chain on Ethereum.
2/ However, this past month, a new protocol on the Bitcoin blockchain has been receiving widespread attention, after it introduced on-chain, Bitcoin-native NFTs. The Ordinals Protocol creates unique âdigital artifactsâ that can be held and transferred across the Bitcoin network.
3/ The Ordinals Protocol (ordinals.com) has received widespread use over the past few weeks. People are testing out the Ordinals protocol by âinscribingâ jpeg memes, videos, and even PDFs onto the blockchain.
4/ Some Bitcoin community members have recognized that #Ordinals have taken up block space on the Bitcoin network, which could drive up #transaction fees.
5/ This has fueled debate amongst the Bitcoin community. Some believe that different use cases for the blockchain is a positive. Whereas others see it as a negative.
6/ How does this work?
Core Bitcoin upgrades including Segwit and Taproot have redesigned Bitcoin transactions and have enabled developers, such as the Ordinals creator (@rodarmor), to more easily manipulate on-chain data.
7/ On a technical and practical level, it will be interesting to see how Ordinals have an impact on the Bitcoin blockchain.
8/ For more insights into the rapidly evolving state of crypto, check out our website: https://research.binance.com