Bitcoin Fees, Nodes, Ordinals Inscription and way Forward

[Dunamisx]

Bitcoin Fees, Nodes, Ordinals Inscription and way Forward

Ordinals Inscriptions are the newly introduced images or texts embedded with a bitcoin transaction on the bitcoin network on blockchain, they are otherwise known as NFTs in form of arts, this makes the bitcoin network get more busy with activities thereby causing the transaction fee on bitcoin to rise, ordinals was introduced to the bitcoin network in march 2023 and the rise in transaction fee occurs as a result of the token called BRC20 which is the major reason why we experience an increase in transaction fees because it's a new inscription included to the bitcoin network with higher fees and the more the demand for this token is the more blockspace needed for bitcoin transaction to the blockchain which aims at increasing the transaction fee.

We can assume that miners are one of the beneficiaries of this experience because they receives higher fee in other for them to maintain a transaction space for every individuals before their transactions is being run and get confirmed, block size is equivalent to about 4mb and any attached inscriptions may needed to be splitted if more than the block capacity it could contain, but the good aspect of it is that this experience may not last longer before a solution is being made


Rise on bitcoin total transaction fees.
                

rise of bitcoin transaction fees since after the introduction of ordinals.

Graph 3

Graph explanation on conditions why the ordinals inscription has an important role on transaction fees.

Increase in Demand on bitcoin ordinance inscribed transaction increases the bitcoin transaction fee, while decrease in supply on bitcoin ordinance if the blocks are not saturated with inscribed ordinals simultaneously decrease the transaction fee.


source

Areas of Applications of Bitcoin Ordinals

1. Fashion Industry
2. Metaverse technology
3. Supply Chain
4. Arts
5. Medicine
6. Agriculture
7. Data science
8. Music
9. Industry brands
10. Government

It is important to note that bitcoin Ordinals currently are in art formats (images) and there could be further progression into the other aspects of the economy as listed above with time, we must also take cognisance that bitcoin ordinals are not directly a smart contract NFTs, but they exist under the blockchain network, Ordinals increases the application use of bitcoin but has caused the incidence of increased bitcoin transaction fee, though they are well secured with the bitcoin network on the blockchain.

Disadvantages of Bitcoin Inscribed Ordinals or Risk Associated.

1. It may serve as an avenue to infiltrate malicious attack to the bitcoin nodes
2. It causes congestion to the bitcoin network and activities
3. It increases bitcoin transaction fees on the network

Solutions to tackle this challenge on Bitcoin Ordinals

The bitcoin network can act in such a way that miners will set a particular range (limit) as transaction fee for each block before getting confirmed and those that contains Ordinals or that do not comply to this protocol be removed into mempool and left unconfirmed.

Reference:
1. Learn more about Ordinals Inscriptions [beginners guide]
2. How to create an Ordinal Inscription
3. How Inscription could alter bitcoin nodes, fees and transactions
4. Impact of Ordinals on mempool and transaction size
5. A comprehensive guide on ordinals NFT on bitcoin

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[franky1]

ordinals and  memes and jsons cludge was the feb march and april fee mania

now they are just stupidly spending utxo to create high fees

this morning i check the latest block made at the time and there was examples like this
https://www.blockchain.com/explorer/addresses/btc/bc1pxdgz3gh9lygk2uhhekrg4wnxm3pk6y0767rzp78w28ggmvkuprzslvmaqr

these have NO ordinals, memes, json cludge

the value being spent is the near same as the fee
where its stupidly leaving silly dust amounts as left over amounts
(having $28.23 and putting a fee of $28.03 to leave just $0.15 as left over.. has no rational purpose of real world utility)

if you take the taint back a bit you see the spender also makes large tx fee
https://www.blockchain.com/explorer/transactions/btc/672b92b29a5c70bb71f5429e5f6313e2cded071d8fa5aafa484fec4fe76e7350
$216 fee for just a tx of 1345 bytes.. which sat/byte=575sat/byte to set up the crap stream of utxo spending 99% of themselves

again no ordinals, memes, json cludge

these transactions have no real purpose of function of spending you buy products/services either. they are just spam transactions to cause fee mania

[SamReomo]

Those ordinals are absolutely useless for anyone and I don't know why people are still trying their best to bring NFT's into Bitcoin blockchain. It's because of such people the bitcoin network fees are increased and many users are getting affected by those higher transaction fees. I don't think that those ordinals can bring anything good to Bitcoin blockchain rather than bringing higher transaction fees.

Those people who are still behind that NFT propaganda are just introducing such technologies to loot the innocent people. There is nothing called NFT in art world unless it's a physical piece of art created by a unique artist but in this case we are seeing bunch of artworks that have been generated by AI image generators and are of no use.

Anyone can create those NFT's or in bitcoin network called ordinals out of thin air with just few prompts to increase the pressure on blockchain. These useless ordinals are causing more harm than good to the blockchain because there is no need for such protocols in Bitcoin blockchain. I wonder how can we protect the blockchain from such useless protocols?

[tranthidung]

Those ordinals are absolutely useless for anyone and I don't know why people are still trying their best to bring NFT's into Bitcoin blockchain.

They have reasons to create their games and doing it on a biggest blockchain is very smart idea. To support game-makers, miners and mining pools do have their roles in high transaction fee too. We cannot have evidence that they do this and that but it's reasonable if they broadcast some transactions in mempools with very high fee rates in order to force others to join the race.

At the end, miners get benefit from the race by earning very good mining rewards than usual, with abnormal high transaction fee (with some blocks, it is up to 6.6 BTC).

Verify it with Bitcoin block explorers
https://blockchair.com/bitcoin/blocks?s=time(desc)#f=id,hash,time,guessed_miner,fee_total,fee_total_usd,size

[Jet Cash]

I think that the fact that this type of misuse of the Bitcoin blockchain was allowed for in the initial concept illustrates the fact that Bitcoin was never intented to be a global mass payment system. The banking system would never allow the inclusion of large pictures of stupid dolls in their payment transactions. It is also interesting that this attack appears right at the time the bankers are ramping up the release of their central digital payment systems. Of course it is just a coincidence, or is it God helping the bankers with their Unicorn projects. Stay wild and free, and cut off the fake horns of the Unicorns.

[Artemis3]

Don't forget certain States, like China (anti Bitcoin), who want their yuan replace the dollar as the global fiat of reference, of course they have a CBDC of it too...

[DaCryptoRaccoon]

Meh you all wanted taproot and this is the after effect.

Maybe don't fuck with that is not broken would be a good place to start stop adding stupid features to a MONEY SYSTEM.

Want to play with Jpeg go do so on ETH.

Nothing good will come of any of this stuff as many already know.

[franky1]

Meh you all wanted taproot and this is the after effect.

Maybe don't fuck with that is not broken would be a good place to start stop adding stupid features to a MONEY SYSTEM.

not many actually wanted it
it was actually the creators of subnetworks like liquid and LN..oh wait. the same guys that are bitcoin devs.. so yea the taproot gang were a small group..with a couple services sponsoring the deployment..  not a "you all"

taproot was promised that for those that want to do group reserve locking of funds it can shrink the witness usage to one signature length.. well that was the promise.. but now the witness space can use upto 4mb.. (lying cheating dishonest devs)

not everyone is part of a group to need taproot so taproot is useless for the majority(individuals)

anyway this spam this May is not much to do with ordinals anymore.. its instead just idiots spending alot of sats to give high fee's, its not really much to do with ordinals, its just plain lame high fee creating spam

how can they do this you ask
its simple.
when the spammers are the pool managers they can put in their own transactions with high fee's because they know they  are just paying themselves so no real value is lost or spent. its just creating false economy of faked fee's to cause everyone else to pay more

[BenCodie]

ordinals and  memes and jsons cludge was the feb march and april fee mania

now they are just stupidly spending utxo to create high fees

this morning i check the latest block made at the time and there was examples like this
https://www.blockchain.com/explorer/addresses/btc/bc1pxdgz3gh9lygk2uhhekrg4wnxm3pk6y0767rzp78w28ggmvkuprzslvmaqr

these have NO ordinals, memes, json cludge

the value being spent is the near same as the fee
where its stupidly leaving silly dust amounts as left over amounts
(having $28.23 and putting a fee of $28.03 to leave just $0.15 as left over.. has no rational purpose of real world utility)

if you take the taint back a bit you see the spender also makes large tx fee
https://www.blockchain.com/explorer/transactions/btc/672b92b29a5c70bb71f5429e5f6313e2cded071d8fa5aafa484fec4fe76e7350
$216 fee for just a tx of 1345 bytes.. which sat/byte=575sat/byte to set up the crap stream of utxo spending 99% of themselves

again no ordinals, memes, json cludge

these transactions have no real purpose of function of spending you buy products/services either. they are just spam transactions to cause fee mania

Just like the miner incentive behind Ordinals (proven by miners selectively confirming some Ordinals and the way that Ordinals themselves work with fees), this TX spam/fee manipulation is probably by the miners as well.

Miners probably lost or sold a lot during the last year or two...tightened regulations, tax introduced in some jurisdictions, forces to move due to mining bans and forces to improve the energy cleanliness of their operations. This shortfall needs to be made up for somewhere and manipulating fees with clever tricks like this only makes sense for miner groups to pursue.

[DaCryptoRaccoon]

Meh you all wanted taproot and this is the after effect.

Maybe don't fuck with that is not broken would be a good place to start stop adding stupid features to a MONEY SYSTEM.

not many actually wanted it
it was actually the creators of subnetworks like liquid and LN..oh wait. the same guys that are bitcoin devs.. so yea the taproot gang were a small group..with a couple services sponsoring the deployment..  not a "you all"

taproot was promised that for those that want to do group reserve locking of funds it can shrink the witness usage to one signature length.. well that was the promise.. but now the witness space can use upto 4mb.. (lying cheating dishonest devs)

not everyone is part of a group to need taproot so taproot is useless for the majority(individuals)

anyway this spam this May is not much to do with ordinals anymore.. its instead just idiots spending alot of sats to give high fee's, its not really much to do with ordinals, its just plain lame high fee creating spam

how can they do this you ask
its simple.
when the spammers are the pool managers they can put in their own transactions with high fee's because they know they  are just paying themselves so no real value is lost or spent. its just creating false economy of faked fee's to cause everyone else to pay more

Agree with all this Franky.

So what is the solution are we going to see a split in the way Bitcoin works now they we have been lied to clearly?

Or will all this extra money people are making quiet down the fires of anger at what has been allowed to occur?

Either way what has happened has damaged Bitcoin in the eyes of many feels like years of effort may be washed away for what?

These are dark days for Bitcoin.

[darkangel11]

The prices and charts don't mean a thing. They show that we're out of the bear market, but some of you guys are so sour that it makes me think the charts are wrong.
"oh no, it's over for bitcoin, now the image of bitcoin is tarnished, all those years of building for nothing, not what Satoshi intended, we're not ready to be a currency or a payment system..."
I feel like we're in some meeting of old ladies recollecting their lost beauty and first lovers.

What makes you decide what the right transaction fee is? Yes, it went up, but maybe it was too low in the first place?
If somebody wants to pay $100 for a transaction and someone else overbids him to 110 and then 120, who's there to say they have no right to do it?
Remember that these people are doing it because they think they're making money. What will happen when reality hits them in the face and nobody wants to buy their NFT, or offers much lower price than the fee needed to send it? This was the case with many 2021 NFT "victims" and it's going to happen again.

[Artemis3]

Its not necessarily over. They opened the doors for the spam, they can close them again. Of course the market will decide regardless. Spamcoin vs Bitcoin...

[hatshepsut93]

Remember that these people are doing it because they think they're making money. What will happen when reality hits them in the face and nobody wants to buy their NFT, or offers much lower price than the fee needed to send it? This was the case with many 2021 NFT "victims" and it's going to happen again.

The people who trade NFTs can afford it, they are the millionaires who profited from previous bull runs, or just regular millionaires who enter this market. It doesn't matter if some of them will lose money by being the bigger fool - they can afford to lose. And this mess can go on for very long.

Bitcoin is not a decentralized digital currency right now, it's a decentralized casino for rich people to gamble on NFTs.

[franky1]

The people who trade NFTs can afford it, they are the millionaires who profited from previous bull runs, or just regular millionaires who enter this market. It doesn't matter if some of them will lose money by being the bigger fool - they can afford to lose. And this mess can go on for very long.

Bitcoin is not a decentralized digital currency right now, it's a decentralized casino for rich people to gamble on NFTs.

firstly
none of the versions of ordinals qualify to be NFT.. none have true proof of transfer that is inline with how bitcoin/blockchains shows proof of transfer

secondly
the memes (ordinal v2) was not actually being traded by lots or real individuals. it was a very small tight group sponsoring each other or more specifically selling memes to themselves to fake some high listings to hope some naive suckers come along and pay similar prices. you can tell its a small tight group becasue all the memes suddenly died out at the same coincidental time. then the next variety of spam started.
in random world of individuality nothing happens so precisely, thus reveals how small and connected the idiots are

thirdly
this spam this week is not to do with ordinals. its mostly just mining pool manager spending their rewards to make transactions with high fees to pay back to themselves thus no real costs. some may be sponsored to do this but most of the funds come back to the pool managers. its not really big whales wasting their hoarded coins
its mainly pools recycling old rewards to make new rewards via inflated fees to themselves of their collaborating pools

..
now back to the old v2 scam of the memes
no they could not afford it. because if they were rich they would not need to scam

this latest spam is more of the mining pool group not the casey scam group