Research Summary
The report discusses the impact of Ordinals and Inscriptions on the Bitcoin ecosystem. Ordinal Theory is an off-chain method of numbering individual sats (the smallest unit of bitcoin) using a First-In-First-Out algorithm. Inscriptions are a way to attach arbitrary data to the Bitcoin blockchain. The report also discusses the emergence of BRC-20s, a fungible token standard that uses Inscriptions. The creation of BRC-20s has led to a significant increase in Bitcoin’s transaction fees and daily transactions. The report concludes by discussing the potential future of Bitcoin, suggesting that while Bitcoin will likely always be decentralized money, it could use a part of its blockspace to accommodate new and developing use cases.
Actionable Insights
- Understand the impact of Ordinals and Inscriptions: These new implementations have led to a significant increase in Bitcoin’s transaction fees and daily transactions.
- Monitor the development of BRC-20s: These fungible tokens have been the primary catalyst for the latest wave of activity on Bitcoin.
- Consider the future of Bitcoin: While Bitcoin will likely always be decentralized money, it could use a part of its blockspace to accommodate new and developing use cases.
