1. ORDI surged over 500% in the last month despite recent downward trends.
2. Ordinals leverage a Bitcoin network vulnerability, masking data as code.
3. Rising data additions to the blockchain are driving sharp increases in transaction fees.
4. Uncertainty looms over the fate of Ordinals and BRC-20 tokens, hinting at their potential demise.
Recent fervor around Bitcoin Ordinals has driven substantial investor profits since its inception. The native cryptocurrency ORDI, part of the ordinals protocol, surged more than 500% in the last 30 days, with a remarkable spike occurring within the past fortnight.
Yet, amidst the hype lies a looming concern: warnings of an imminent crash potentially reducing this cryptocurrency to zero.
This stems from the innovation in inscriptions, ordinals, and Bitcoin NFTs—an intriguing development in the blockchain realm. Engineer Casey Rodarmor pioneered a method to 'inscribe' data into Satoshis, akin to NFTs found on various chains. This breakthrough marked the inception of the first Bitcoin network-based NFTs, facilitated by the BRC-20 token standard, with ORDI being the most prominent.
However, a recent disclosure by Luke Dashjr, a Bitcoin Core developer, paints a grim picture. Dashjr highlights that Ordinals and other BRC-20 tokens exploit a vulnerability within the BTC network—disguising data as legitimate code to surpass data size limits, effectively 'spamming the blockchain.'
Disturbingly, this vulnerability may soon be rectified, potentially signaling the demise of BRC-20 tokens, driving their prices towards insignificance.
The crux lies in the unrepaired data size limit within the core Bitcoin code, leaving Ordinals vulnerable, unlike the patched Bitcoin Knots derivative. Yet, the impending v27 release in 2024 could spell doom for Ordinals, as this vulnerability might finally be addressed.
The value of utility tokens thrives on their usage. Dashjr posits that BRC-20 tokens' assault on Bitcoin has inflicted irreversible damage on the blockchain, leading to escalated transaction fees—a sign of underlying issues.
Given their significant blockchain space occupation and fraudulent nature, urgency looms over potentially ending Ordinal inscriptions, marking a possible conclusion to this vulnerable yet innovative technology.
Disclaimer: While striving for accuracy, Voice of Crypto absolves itself of responsibility for any inaccuracies. Cryptocurrencies are highly volatile; hence, independent research is advisable for financial decisions.
