I have already talked extensively about Bitcoin's Ordinals, what are improperly classified as the NFTs of the Bitcoin blockchain.
As we know, this possibility has been sharply criticized by the community because it changes the prerogatives that the Satoshi Nakamoto team had imposed for the structure of BTC.
Now, the evolution (or rather speculation) has gone as far as Binance, which is creating a marketplace for the exchange of these satoshi "tagged" metadata.
Let's look at it in detail
Binance, a leading cryptocurrency exchange, has unveiled the "Inscriptions Marketplace," allowing users to trade inscriptions, BRC-20 tokens, and associated assets. This innovative platform seamlessly integrates with the Binance wallet Web3, a self-custody wallet embedded within the Binance App, revolutionizing the user experience.
BRC-20 tokens, an experimental standard for token creation on the Bitcoin blockchain, draw inspiration from Ethereum's ERC-20 but distinguish themselves by not relying on smart contracts. Developed using the Ordinals protocol by Casey Rodarmor in January 2023, these tokens have data "inscribed" directly onto individual satoshis, the smallest units of Bitcoin. This process enables the creation of NFTs on Bitcoin by imprinting data directly onto satoshis.
Integrated into the Binance wallet Web3, the marketplace within the Binance App offers users the ability to seamlessly trade BRC-20 tokens. Boasting advantages such as frictionless transfers, faster transactions, and a myriad of options, the marketplace facilitates inscription and exchange for approximately 60,000 prominent BRC-20 tokens. Notably, it introduces one-click transfers and significantly reduced transaction processing times, thanks to its integrated accelerator.
The recent integration of token inscriptions by rival exchange OKX underscores the transformative impact of inscriptions and BRC-20 tokens. While debates persist within the community, critics express concerns about potential cost implications and damage to Bitcoin's image as a reliable payment network. Conversely, supporters believe these innovations can attract a wider audience and expand the use cases of the Bitcoin network.
Renowned Bitcoin Core developer Luke Dashjr openly criticized Ordinals, asserting that they have caused harm to Bitcoin and its users. He contends that Ordinals were never authorized and exploit a vulnerability within Bitcoin Core's code, leading to a surge in transactions that strain the Bitcoin network. Dashjr proposes their removal, citing the exploitation of a vulnerability within Bitcoin Core's code.
Contrary to critiques, a recent Binance report highlights the positive impact of inscriptions on the Bitcoin network, contributing to increased activity. Analysts posit that Ordinals, inscriptions, and BRC-20 tokens played a pivotal role in the network's recovery, manifested in the surge in Bitcoin prices during the recent market downturn.
Bitcoin's dominance has risen from 40.4% to 50.2%, accompanied by a 156% increase in the crypto's price throughout the year, driven in part by institutional inflows. Despite concerns, Ordinals, launched a year ago, significantly impacted the Bitcoin blockchain, resulting in the creation of new tokens, a substantial increase in transactions, and record-high fees during periods of heightened activity. Notably, miners facing financial difficulties during the bear market found a potential lifeline in Ordinals to navigate the upcoming reward halving.