BlocksInform
Ordinals protocol has triggered a revival of interest in bitcoin (BTC) development and has led to an increase in average block size as more users join the network, research firm FSInsight said in a report Friday.
Ordinals is a new protocol that allows non-fungible-tokens (NFT) to be stored on the Bitcoin blockchain.
NFTS could be a good demand source for block space as the digital asset 'moves up the adoption curve as money," and the likelihood of these chips powering bitcoin next bull race cannot be ignored, it says.
“Despite the loud critics from the more dogmatic side of the bitcoin ecosystem (some of which have gone as far as advocating for the censorship of transactions by miners), the benefits to the network have become immediately apparent,” wrote Sean Farrell, head of crypto strategy at FSInsight.
A reasonable critique of Bitcoin's security model is the lack of mining revenues from fees, the note said. At present, the majority of the security budget provided to minors to secure the network comes from the global grant. At present, the largest portion of the security budget paid to minors to secure the network comes from the global grant.
Blockchain must find a way to 'create a sustainable demand for block space or hope for non-economic miners to commit to securing the network,' the note added.
Fsinsight notes that writing nonfungible data onto the blockchain could cause bloat.
