How Ordinals Project Will Benefit Bitcoin
The sudden rise of Ordinal projects has led to a renewed interest in the oldest and most successful blockchain in the world, the Bitcoin network. Although not an entirely new discovery, the growing popularity of these types of projects is seen to benefit Bitcoin or even the entire crypto landscape in many ways.
Ordinal projects refer to projects built within the Bitcoin blockchain, using its underlying technology to create new and innovative applications. Basically, it allows one to inscribe images or NFTs as well as other forms of digital data directly into each satoshi or one hundred millionth of a Bitcoin.
Supporter of the system is Udi Wertheimer, a self-employed developer and consultant in blockchain projects. The first of these digital artifacts was only launched in January of this year, but they have experienced a boom since then. These were recorded by over 100,000 during the Valentine’s Day celebrations, causing system overload in the Bitcoin network.
Despite this rather unfortunate turn of events, crypto enthusiasts are more than hopeful about the promises of these new projects. Ordinary projects are planned to benefit the Bitcoin ecosystem in many ways, including the following:
1. Incentivization of miners
The spike in the creation of Ordinals over the last couple of weeks has contributed to the increase in transaction fees and typical block size on the Bitcoin blockchain. Demand is particularly strengthened by the scarcity of block space in the system for inscriptions. These will hopefully be enough to motivate miners as revenue from mining rewards is expected to decrease with each Bitcoin halving.
2. Improved security
Higher transaction fees are projected by Wertheimer to provide better incentive for miners to further secure the Bitcoin network. He strongly believes that the growing demand for Ordinals will attract more people willing to pay fees to keep the blockchain maintained.
3. More profitability
In addition, the developer of Ordinal projects believes that new use cases may be discovered later that could potentially make Bitcoin more commercially profitable in the future.
4. Improved functionality
Ordinal projects can add new features and capabilities to the Bitcoin blockchain that were not realized in its original design. As shown recently, the scope of Ordinal projects encompasses more than just NFTs. Apart from JPEG images, they can be used to input other forms of digital art, profile picture projects (PFP) and even the original 1993 version of the Doom video game.
5. Increased adoption
By making it easier and more efficient to use Bitcoin, mainstream projects can help further promote the adoption and use of this cryptocurrency. This can lead to more users, more transactions and more overall value in the Bitcoin ecosystem.
Conclusion
Overall, mainstream projects can help expand the utility of the Bitcoin blockchain in ways that have never been fully explored before. Similarly, introducing these at the forefront of the crypto industry can support the Bitcoin ecosystem in expanding its reach in different niches, making it a more useful and valuable technology for different users and businesses going forward.
