Bitcoin Ordinals: Hard Fork Proposal Amidst Community Debate Over NFTs
Summary:
The article discusses the ongoing debate within the Bitcoin community following the emergence of Bitcoin Ordinals, essentially nonfungible tokens (NFTs) on the Bitcoin blockchain, in 2023. It explores the potential solution of a hard fork, similar to those leading to Bitcoin Cash and Bitcoin SV, to prevent fragmentation in the community, particularly in light of forthcoming Bitcoin ETFs from Wall Street firms. The article highlights the strong positions on both sides — from Bitcoin purists fearing Ordinals undermine the coin's value, to Ordinals supporters viewing them as a sign of innovation. Lastly, it details plans to block future Ordinals with Bitcoin Core v27, and suggests an Ordinals-specific chain could prevent potential conflict.
The concept of Bitcoin Ordinals, essentially nonfungible tokens (NFTs) on the Bitcoin blockchain, emerged in 2023 and brought about a significant disagreement within the Bitcoin community, a group that had previously maintained solid unity since the major block size dispute in 2016. To avoid potential fragmentation within the Bitcoin community, particularly as major Wall Street institutions prepare to launch Bitcoin ETFs, those in favor of Bitcoin Ordinals might consider instigating a hard fork of Bitcoin (BTC), akin to Bitcoin Cash (BCH) and Bitcoin SV (BSV). This would permit their vision of on-chain NFTs to flourish without the risk that Bitcoin core developers might nullify their collectibles. When a blockchain splits into two separate entities, it is classified as a hard fork. The original blockchain proceeds along its preset ledger and protocol, while the new fork modifies the protocol in some capacity, for instance by increasing the block size, then promotes it as a coin frequently declared as the authentic Bitcoin as imagined by Satoshi Nakamoto. For example, Bitcoin Cash hard-forked from Bitcoin, and Bitcoin SV did the same from Bitcoin Cash. The communities surrounding both Bitcoin Cash and Bitcoin SV assert that Satoshi envisaged bigger blocks as the key solution to scalability. Current debates surrounding Bitcoin and Bitcoin Ordinals have resulted in two firm factions. In one corner, Bitcoin purists argue that Ordinals jeopardize Bitcoin's primary role as digital gold or electronic currency, viewing Ordinals as a systemic flaw or an outright protocol attack. Pro-Ordinal factions, conversely, argue that Ordinals were enabled by protocol changes introduced by core developers themselves, citing format changes in Bitcoin transactions via the Segregated Witness (SegWit) upgrade and the Taproot upgrade, and assert that Ordinals constitute innovative progress. The disagreement has escalated considerably in recent months, with both sides hardening their stances, with significant Bitcoin figures like Max Keiser and developer Luke Leighton leading the opposition to Ordinals. Bitcoin Core v27 is further poised to make future Ordinals impossible on the Bitcoin blockchain, addressing the apparent bug, though preexisting Ordinals will be maintained. The development of Bitcoin Core v27 demonstrates that developers and nodes, as opposed to Ordinals buyers and miners, have final say over the Bitcoin protocol. Instead of contesting this uphill battle against a Bitcoin community looking to eliminate future Ordinals at a protocol level, those in the Bitcoin Ordinals camp could emulate the strategies of Bitcoin Cash and Bitcoin SV, opting for a hard fork and creating a Bitcoin Ordinals chain free from interference from core developers. The current disunity within Bitcoin community risks undermining its image and core principles of decentralization and financial independence as institutional funding pours in. Unity is key for the Bitcoin community at this pivotal time. A more successful outcome is likely if a Bitcoin Ordinals chain is established, instead of a full-scale clash similar to the block size debate. Increased transaction fees experienced in 2023 as Ordinals proliferated also suggest that Bitcoin miners would support an Ordinals chain.
Published At
1/10/2024 12:06:46 AM
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