Ordinals is a protocol for storing NFTs on the Bitcoin blockchain. Although the possibilities and the number of NFTs are small compared to Ethereum, the use of the ornamental don Bitcoin Blockchain added value that can be reflected in the price of the cryptocurrency.
A serious error has now emerged that could have consequences for NFTs in the Bitcoin blockchain, but also for the cryptocurrency itself. But how bad is it now?
What are Ordinals? And how does it work with the NFTs in the Bitcoin blockchain?
Ordinals use inscriptions to store NFTs. In order to “mint” your own NFTs in the Bitcoin blockchain, a suitable wallet that supports orders is required. So such a wallet can create NFTs directly in the Bitcoin blockchain (minten).
When NFTs are created on the Ethereum blockchain, gas charges, ie fees, required. Creating NFTs on the Bitcoin blockchain also costs fees. Due to the high price of Bitcoin, creating a Bitcoin NFT could cost between 10 and 20 euros, i.e. approx. 50,000 satoshis, which is about 0.0005 BTC is equivalent to.
Once BTC or Satoshis are available in the compatible wallet, NFTs can be created with them. The orders on the Bitcoin blockchain are therefore an interesting protocol, especially given the increasing popularity of NFTs.
Even Disney has recently gotten into NFTs and is now offering Star Wars characters as NFTs. German banks occasionally offer real gold as NFT and big companies like Nike and Adidas have already found the NFT market for themselves. These are just a few examples of the ever-growing NFT market and related NFT markets.
It is hoped that NFTs elsewhere in the NFT market will be able to benefit from this trend as well. For example, Decentraland by MANA is a well-known project that offers NFTs and new cryptocurrency.
Digital assets: Normal recordings are transferred from record to record
Ordinscriptions (Inscriptions) in Bitcoin Blockchain digital assets are now increasingly popular. More and more bitcoin holders are created NFTs themselves. The inscription process that occurs when an NFT creates over orders writes data directly into the witness of the bitcoin transaction related to them.
If users create an NFT in the Bitcoin blockchain, Bitcoin Core is first downloaded and the respective node is synchronized with the Bitcoin blockchain. After that the previously mentioned wallet is created, which supports devices. After that you still have to Satoshis (smallest unit of BTC) to the wallet. An NFT can then be created.
What is the current problem with Ordinals? And how bad is it?
Through a Error in program code With the command protocol it is generally possible to create transactions that have no input or output and thus cost no satoshis. The result was a breakdown of the system by which the serial numbers were numbered.
Of course, insiders immediately feared that there would be more errors and that the entire protocol would be wrong. The error was generated by the user “Super Testnet” who documented the process on Twitter.
Simply put, Super Testnet has one with the Ordinals protocol NFT created through Inscriptions without being owned by Satoshis. It really shouldn’t have been possible, but it was.
Wait did I just break ordinals? https://t.co/V41NQt9aQz
— Super Testnet (@super_testnet) May 4, 2023
Inscriptions are an important factor in creating NFTs because they attach metadata to transactions that are fundamental to the NFTs on the Bitcoin blockchain. This is different from the use of NFTs in the Ethereum blockchain or Polygon with the associated MATIC token. Own tokens are used here and mostly smart contracts. It works differently with Bitcoin.
In the Bitcoin blockchain, the NFTs are a direct part of the actual blockchain and are supplemented with those already described Inscription ordinals as metadata written to the blockchain. Yes that no need sidechains or own tokens. Of course, this also shows benefits, the creation is paid for with Satoshis.
However, in the above transaction without input and output no integrated satoshis. So maybe in this case label satoshis, even though “Super Testnet” doesn’t own them. This is obviously not desirable and should not be possible. It is the transaction in question only Error in this log.
However, the transaction cannot simply be deleted now, as the blockchain ignores the corresponding inscription. That would make a complete mess of all subsequent inscriptions from the numbering.
Experts do not see any danger to the ordering protocol in the error. Danny Diekroeger, founder of Bitcoin Lightning He does not see this as a major problem, so that NFTs should continue to be created in the Bitcoin blockchain without hesitation.
The “inscription numbers” are just a blank metric that puts the order in which inscriptions came first.
some collectors like to have the 100,000th inscription, for example or whatever
these are all messed up now, because @super_testnetThe transaction revealed some logic in the software
— danny ⚡️ deezy (@dannydiekroeger) May 4, 2023
However, the consequences of the error are not yet entirely clear. Even the user who created the error on purpose is not entirely sure what the impact will be. The future will tell how things will continue. It is therefore worth continuing to monitor the content of ordinals, inciprions and NFTs on the Bitcoin blockchain.
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