The Bitcoin Ordinals protocol developers have introduced a new upgrade to rectify over 71,000 invalid inscriptions previously untradeable. These inscriptions often result from incorrect usage and were rendered useless and untradeable until now.

However, with this recent development, developers have taken the first step toward addressing this long-standing problem.

Developers Unleased the New Ordinals Protocol Version 0.6.0

Bitcoin Ordinals refer to nonfungible asset artifacts that allow data to be inscribed onto the smallest unit of Bitcoin, known as a satoshi.

According to Dune Analytics, $45.5 million have been generated from 10.8 million ordinal inscriptions since the beginning of this year. On June 4, a notable developer, Raphjaph, announced that Ordinals’ latest version, 0.6.0 is available.

He added that this development would mark a turning point in recognizing these previously unrecognized inscriptions enabling them to be traded once again.

Essentially, “Cursed Inscriptions” was coined to describe inscriptions generated through improper usage or manipulation of opcodes during the creation. 

As a result of these processes, the inscriptions became invalid and unacknowledged by the system.

Ordinals creator Casey Roadarmor first proposed to fix the issue in late April by recognizing and converting these cursed inscriptions to “Blessed” ones.

Roadarmor desired to modify the ordinals protocol to recognize multiple inscriptions per transaction, inscriptions with unrecognized even headers, etc.

As such, the enhancements in the latest version optimize the “ord” system, streamline inscriptions, and ensure client agreement, enhancing efficiency, flexibility, and compatibility.

Meanwhile, Ordinals promoter LeonidasNFT said that the “cursed inscriptions,” as recognized by the Ordinal’s latest version, act as a “stepping stone,” offering a pathway for previously invalid inscriptions to become visible.

Ordinals Spark Controversy and Record Transaction Costs

Since the inception of the Bitcoin Ordinals protocol in January 2023 by Casey Rodarmor, there have been multiple speculations concerning its transaction costs and slower speeds.

One of the most significant concerns raised by the community is the undeniable and undesired impact of Ordinals on Bitcoin’s network capacity and scalability.

There has been a sharp increase in BTC transaction fees caused by the surge in BRC-20 activity which relies heavily on Ordinal inscriptions.

The trading frenzy surrounding BRC-20 meme-coins like Pepe (PEPE) pushed transaction costs to their highest levels since 2021.

The blockchain has been experiencing massive congestion as users continue to pour BTC into minting new tokens settled via Ordinals inscriptions.

On May 7, the congestion reached a critical point when Binance halted BTC withdrawals temporarily due to approximately 400,000 pending transactions congesting the mempool.

Balancing the innovation brought by Ordinals with the need for a scalable Bitcoin network poses a challenge that must be addressed to ensure the continued success of the cryptocurrency.

Featured image from Pixabay and chart from TradingView

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Filed under: Bitcoin - @ June 5, 2023 8:00 pm