Bitcoin Ordinals: While the Bitcoin halving is considered the biggest event in the cryptocurrency’s life cycle, the onset of Bitcoin based NFTs could potentially go on to become the next biggest development. Primarily, Bitcoin was so far seen as a layer 1 blockchain with its use case being peer to peer transactions. With the coming of Non Fungible Tokens (NFTs) on Bitcoin layer itself, there could be a paradigm shift in the way miners operate, going forward. On chain data shows that the mean miner transaction fee per block rose in parallel with the adoption of Ordinals.
As a layer 1 blockchain, Bitcoin had the distinction of maintaining a standard peer to peer network. However, the blockchain network was deprived of use cases like NFT support. Hence, considering its reliability and stability as a regulator-friendly blockchain, Bitcoin adds more meaning to the Ordinals project. The adoption is clearly seen as miners rake gains from increased transaction fees thanks to the NFT activity on chain.
Bitcoin NFTs With Ordinal Theory
The Ordinals project rose to prominence as NFT transactions on Bitcoin network does not require a separate blockchain layer or changes to the Bitcoin network. For the purpose of store of value, these transactions also do not go with any other cryptocurrency but Bitcoin itself. The protocol was powered by two soft fork upgrades — Segregated Witness and Taproot.