Binance researchers say ordinals could lead to a massive overhaul of the Bitcoin (BTC) ecosystem in the coming years.
Bitcoin ordinals allow users to inscribe digital data such as images and videos onto a single satoshi, or individual unit of BTC, to create the equivalent of non-fungible tokens (NFTs) on the king of bitcoin’s network. crypto.
Since their popularization, ordinals have dominated the fee economics on the Bitcoin blockchain.
In a new report, Binance Research claims that ordinals are attracting new developer communities to Bitcoin and breathing new life into an ecosystem that previously faced uncertainty over where miners’ revenue would come from in the future.
“The impact of listings and BRC-20s on the Bitcoin network has been notable…Bitcoin’s mempool transaction count has far exceeded previous years’ levels and reached all-time highs in 2023, driven by listing activity and BRC-20s. Other metrics, such as average block size and transaction fees, have also seen notable changes.
Beyond the metric changes, the most profound impact of the BRC-20/listings on the Bitcoin ecosystem would be the increased motivation of developer communities.
Many new builders have been attracted to Bitcoin, existing projects are being further updated quickly, and various new ideas are circulating within the Bitcoin community.
As such, we could see a completely different Bitcoin ecosystem in the years to come. Some might argue that these changes contradict BTC’s intended role as a “hard” currency. However, continuous innovation is crucial to creating new, compelling use cases that can promote widespread adoption. So it’s interesting to think about where Bitcoin could go next.
At the time of writing, Bitcoin is trading at $48,160.
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