The Impact of Bitcoin NFT’s Movement on the Blockchain Ecosystem
- The creator of the NFT protocol said that Bitcoin will be fine with Monkey and JPEG.
- The popularity of Bitcoin NFTs will have a positive impact on the Bitcoin ecosystem.
- This attracts developers to the ecosystem, as Ordinals supporter Udi Wertheimer said in an interview.
According to a Bloomberg report, “some hardcore Bitcoiners are up in arms at the prospect of ubiquitous Internet memes like pixelated cats and smoking monkeys clogging up the blockchain.” Casey Rodarmor is the creator of the recently introduced NFT protocol called Ordinals which is at the center of the anxiety, says not to worry.
Rodarmor sees inscriptions, or the newfangled non-fungible tokens, giving the oldest blockchain a new use that can increase its utility.
On the other hand, the critics claim “they will displace regular transactions with high fees due to the large amounts of data required to inscribe the digital images, GIFs and representations, undermining Bitcoin’s original mission as a peer-to-peer payment network” , according to the Bloomberg report.
It should be noted that a year ago, Casey Rodarmor first started working on the protocol. While the newly introduced Bitcoin NFTs risk backlash from purists.
Bictoin NFTs Explained by a Dev
In a recent interview by independent developer Udi Wertheimer, he said that non-fungible Bitcoin tokens will positively impact the ecosystem by improving security and motivating developers to build on the network.
In recent weeks, the number of newly created Ordinals has increased, and it is also causing an increase in transaction fees and the average block size of the Bitcoin blockchain.
According to Wertheimer, Bitcoin NFTs will be beneficial to the security budget. By increasing transaction fees, the creation of Ordinals will incentivize the miners to secure the network. Also, the income from mining rewards will decrease with each Bitcoin halving.
During the interview, Wertheimer discussed that “because the block space is scarce and because there is a demand for things like inscriptions, there is a lot of hope that they will get enough people who will pay fees to keep the Bitcoin network secure.”
The developer also noted that Ordinals provide a new use case for making building on Bitcoin commercially viable. He states “with all the interest around ordinals and inscriptions, he expects there’s going to be a very large ecosystem built around it.”
The developer ignores the opinion of some Bitcoin core developers that creating NFTs is not an appropriate use case for Bitcoin. In recent years, “core Bitcoin developers have ignored what actual Bitcoin users want,” he further added.
At press time, the price of Bitcoin is trading at $24,915.12 with a 24-hour trading volume of $32.21 billion. Bitcoin is up 0.98% in the last 24 hours, with a market cap of $480.78 billion. Meanwhile, the buy signal for the Bitcoin price could suggest the start of a new macro bull run.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional money exchange systems. She is also fascinated by the blockchain technology and its function.
