Bitcoin’s next rise may come from NFT: FSInsight report | coindesk JAPAN | Coindesk Japan

The Ordinals Protocol has sparked a resurgence of interest in Bitcoin (BTC), leading to an increase in average block size as more users join the network, according to a report released Feb. 3 by research firm FSInsight. It is said that it is connected to

Ordinals is a new protocol that allows non-fungible tokens (NFTs) to be stored on the Bitcoin blockchain.

NFTs could be a good source of demand until digital assets are fully adopted as money, and the potential for these tokens to fuel Bitcoin’s next rise cannot be ruled out, the report said. there is

Sean Farrell, head of digital asset strategy at FSInsight, said: “There has been a lot of criticism from the more dogmatic side of the bitcoin ecosystem, some of whom have called for miners to censor their transactions. Nonetheless, the benefits to the network were immediately apparent.”

One of the valid criticisms of Bitcoin’s security model is the lack of revenue for miners due to fees, the report states. Currently, most of the security budget paid to miners to protect the network comes from block subsidies. Bitcoin needs to come up with a way to “create a sustainable demand for blockspace or hope uneconomical miners commit to securing the network,” he said.

“The excitement surrounding Bitcoin’s NFTs has led to new experiments in the network, increasing average block sizes overnight and leading to rising fees per block,” the report states.

FSInsight acknowledges that there are concerns that blockchains will become bloated with non-fungible data, but that these concerns are often unfounded.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Ordinals Protocol
｜Original: The Ordinals Protocol Has Caused a Resurgence in Bitcoin Development