Ordinals: the controversy over the creation of “NFT” on Bitcoin

You may have heard of the new NFT protocol called “ ordinals » launched on the Bitcoin network. The topic divides the community and revives old debates. While some people welcome this novelty, others are outraged and claim that it “distracts” Bitcoin from its core mission.

Like many things in life, it is not easy to decide for one side or the other. The most important thing is to hear everyone's arguments in order to form your own opinion.

Presentation of the “Ordinals” protocol

Software engineer Casey Rodarmor is the originator of the "Ordinal" protocol. This protocol allows the creation of non-fungible assets on the Bitcoin network. Rodarmor calls them "digital artifacts." These assets can be JPEG images, PDF files, or even audio and video formats. They are represented by a cryptographic series of numbers and can be sent to other Bitcoin addresses in the same way that satoshis are sent.

On his blog, Rodarmor explains that NFT types are created on the mainnet. These artifacts do not need a side chain or layer 2 of any kind.

Why create NFTs on the Bitcoin network?

Digital artifacts are NFTs, however not all NFTs are digital artifacts. It is from this observation that the developer found meaning in creating NFTs on the Bitcoin network. For him, this is the ideal version of what an NFT should be: decentralized, on-chain and immutable. However, many NFTs created so far do not respect this definition. Many NFTs are stored off-chain, hosted on centralized platforms, for example.

It is in fact to resolve the flaws inherent in NFTs that we currently know that the creator of Ordinals wanted to realize his project.

So, from this perspective, NFTs are flawless. They are created on the oldest and most secure blockchain available, namely Bitcoin. They do not depend on faulty smart contacts that must be audited regularly.

The controversies concerning the “Ordinals” protocol

For some people in the Bitcoin community, this new use of Bitcoin is problematic and takes Bitcoin away from the original vision of its creator Satoshi Nakamoto. For this group of people, if we follow the Bitcoin white paper, it is a peer-to-peer electronic payment system. It must not have any use cases other than this one.

Others point out that NFTs would be energy intensive and this new incentive would inevitably increase transaction fees. This could eventually drive users away from the network. This would create “spam” on the network for a function that has no real use since other blockchains already allow the creation of NFTs.

For other people, this protocol is a good thing for network development. This would boost Bitcoin and its functionality. This would bring ultimately a new practical use case for Bitcoin. Being able to create NFTs does not remove the original function of bitcoin which consists of sending and receiving bitcoins.

Final word

The project is still "new" and the debate continues to agitate Bitcoin users and this is likely to continue for some time. It should also be remembered that the debates are very "healthy" - in absolute terms - for theecosystem. This is not the first time the Bitcoin community has been split over a proposed innovation. For example, recently, it was the controversy over drivechains that has divided the community or whether to modify the ceiling of 21 million bitcoin.

Very often, these debates have led to developments and innovations appreciated today. This is even part of the history of the development of Bitcoin with the BIP notably (Bitcoin Improvement Proposal). This is also why the network continues to evolve and update itself continuously.

So, let’s continue debating 😉

See also:

• Continued decline in Ordinals shows declining interest
• What is the BitVM proposal?
• The main historical dates of Bitcoin
• The next bull run might not be as intense
• Bitcoin Racing is looking for new drivers

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Note: This is not investment advice. Always do your own research.