While Ordinals registrations are in full swing, Binance announces that its NFT marketplace will soon open to the Bitcoin (BTC) network. Its users will be able to trade and store their assets in one place. However, this trend brings to light the predictions of part of the Bitcoin community, namely the congestion of the network because of registrations.
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Ordinals : la marketplace NFT de Binance s’ouvre aux inscriptions du réseau Bitcoin (BTC)
A turning point for Ordinals registrations?
The non-fungible token (NFT) platform owned by Binance will open soon for Ordinals registrations. According to the company led by Changpeng Zao, this new feature is intended to further democratize the Bitcoin (BTC) ecosystem.
As a reminder, Ordinals registrations allow immutable data to be stored on the Bitcoin blockchain. Unlike the NFTs of the Ethereum blockchain whose storage depends on a host (IFPS or Arweave), registrations are directly stored in the blocks of the Bitcoin network.
For the moment, Binance’s NFT marketplace only supports three networks : Ethereum (ETH), Polygon (MATIC) and BNB Chain (BNB). With the future arrival of the Bitcoin blockchain, its users will be able to buy and sell Ordinals listings directly through their Binance account.
The integration of registrations by the company specializing in cryptocurrencies is not trivial. In a context of commercial competition, Binance seeks to get ahead of its competitors in order to maintain its dominant position on the exchange market. In the next few days, other companies could follow suit.
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The explosion in popularity of this innovation
Appeared in January 2023, before bank failures multiplied, Ordinals registrations grew quickly before stabilizing between 5,000 and 25,000 daily registrations. Consequence or simple correlation of the opening of the NFT Eden Magic marketplace to the Bitcoin network, they reached 76,000 registrations per day last April.
However, since the beginning of May, their number has exploded: in the space of just 20 days, the quantity of listings in circulation has multiplied by 4, going from 1.2 million to 5 million at the writing of these lines.
While early inscriptions consisted almost exclusively of an image, they are now more than 99% composed of text only. According to data from Dune Analytics, 86% of Ordinals listings are text files, followed by PNG documents at 9.5%.
Figure 1 – Proportion of different file types saved in Ordinals entries
Note that this significant growth has significantly increased transaction costs on the Bitcoin network. On average, Inetwork charges have been multiplied by 10.
When Ordinals registrations emerged, part of the Bitcoin community rose up against this innovation by denouncing an inexorable increase in network costs associated with increased activity on the blockchain. Will this increase be constant? Only time will tell.
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Sources: Binance, Figure 1 – @dgtl_assets for Dune, Messari
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Always enthusiastic about new technologies, I gradually moved closer to Web3-related activities during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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