Increase in Bitcoin’s Block Size and NFT Usage Linked to Ordinals Protocol

02/19/2023 04:49 • Tech Trends • 85 views

It is reported that according to Glassnode data, since the introduction of Ordinals, the upper limit of the average block size of Bitcoin has increased significantly, from 1.5-2.0 MB to 3.0-3.5 MB in a few weeks. This increase is not only related to images, but also related to larger files (such as audio and video) starting to be stored as Ordinals. It is worth noting that on February 1, the first NFT work of the Taprot Wizards series, the Inscription 652, set a new record for the largest block and transaction in Bitcoin history, reaching 4 MB in size. Glassnode shows that although the Ordinal network has a significant impact on the size and cost of the transaction hash of the special currency, the average size of the transaction has increased by more than 100%, from 600 bytes to 1100 bytes. In addition, according to the latest data of Dune Analytics, the number of NFTs cast by the Ordinals protocol on the Bitcoin network has reached nearly 150000 (142735). （cryptoslate）

After the introduction of Ordinals, the average block size of Bitcoin has increased to 3.0-3.5 MB, almost doubling compared with that before the release of the protocol

Analysis based on this information:

According to Glassnode data, the introduction of Ordinals has significantly increased the upper limit of the average block size of Bitcoin from 1.5-2.0 MB to 3.0-3.5 MB in just a few weeks. Ordinals, a protocol that allows users to encode and store digital content onto the Bitcoin blockchain, is not only increasing the size of images but also larger files such as audio and video. This is leading to an increase in the average size of transactions, with Glassnode finding that the average size has increased by over 100%, from 600 bytes to 1100 bytes.

Another important development is the growth in NFTs being cast on the Ordinals protocol. Dune Analytics reports that nearly 150,000 NFTs have been cast using Ordinals on the Bitcoin network. On February 1, the first NFT work of the Taprot Wizards series, Inscription 652, set a new record for the largest block and transaction in Bitcoin history, reaching 4 MB in size.

The use of Ordinals has impacted the network’s size and cost of transaction hash. It is now possible for users to store larger files on the blockchain, but this comes at a cost. Larger files are more expensive to store and transmit, which could create challenges for some users. However, the use of NFTs for artwork and other unique digital assets is creating a new market for cryptocurrency users.

In summary, the Ordinals protocol is changing the way that Bitcoin is used. It is allowing users to store and transmit larger files, which is creating opportunities in the NFT market. However, there are challenges associated with this new protocol, such as higher storage and transaction costs. Nevertheless, it is an important development and one that is worth keeping an eye on in the coming months.

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