TL;DR
- The Bitcoin network sets a new record by surpassing 65 million Ordinals inscriptions.
- These inscriptions, introduced in January 2023, have generated over $458 million in network fees, providing a crucial income source for BTC miners.
- Their success underscores the need to explore new opportunities and applications for BTC, including the emerging concept of Bitcoin Decentralized Finance (BTCFi).
Bitcoin breaks records after exceeding 65 million Ordinals inscriptions. These inscriptions, similar to NFTs, represent a unique way to mark satoshis, the basic unit of BTC. This stands as excellent evidence of BTC’s success and its various uses beyond its original function as a cryptocurrency.
Ordinals inscriptions were introduced in January 2023 and have since experienced exponential growth. Now, with over 65 million inscriptions, the increasing demand for block space on the Bitcoin network is evident. Additionally, the inscriptions have generated over $458 million in network fees, a significant income for miners.
It is noteworthy that the inscription record was achieved on the eve of the much-anticipated halving. This event, occurring approximately every four years, halves the block rewards received by miners. With the halving, the reward per block will reduce from 6.25 BTC to 3.125 BTC. Therefore, the network fees generated by Ordinals inscriptions become a crucial income source for miners amidst this shift in rewards.
Is Bitcoin Venturing into DeFi Territory?
On the other hand, the success of Ordinals opens the door to an emerging need: to explore new opportunities and applications for Bitcoin. Specifically, the concept of Bitcoin Decentralized Finance (BTCFi) aims to bring decentralized finance (DeFi) capabilities to the BTC network. If the current trend continues, we may see a significant growth in BTC L2s, additional layers in the BTC network facilitating the utility of Ordinals and other DeFi services.
Bitcoin continues to evolve, with its adoption increasing over the years. Innovation must be part of this journey. New opportunities emerge to explore its utility beyond being digital money. The ability to mark satoshis with unique information through Ordinals opens new possibilities for applications in areas such as intellectual property, asset tracking, and more.
