The American financial company Franklin Templeton highlighted in its recent report the Bitcoin Ordinals protocol, which, among other things, allows the registration of non-fungible tokens (NFT) on the blockchain of the most important digital asset on the market.
In the noteTitled “The Rise of Bitcoin Ordinals,” the company noted that Bitcoin innovation and development “experienced a renaissance” last year thanks to Ordinals.
According to Franklin Templeton, Ordinals are “starting to gain traction in the NFT space“, to the point where they start to dominate the ecosystem.
Franklin Templeton is the issuer of one of the 10 spot Bitcoin exchange traded funds (ETFs) that are traded on Wall Street.
The financial firm shared a chart reflecting an increase in Ordinals dominance in the NFT market from December 2023, the month the Bitcoin protocol was launched surpassed Ethereum in terms of trading volume.
Franklin Templeton emphasized in his report that unlike NFTs on other networks such as Ethereum or Solana, Ordinals “contain raw data recorded directly on the Bitcoin blockchain.”
They also noted that Bitcoin developers had been trying to create a form of NFT on the digital asset’s blockchain for years, “although they never had much success until recently.”
This is reminiscent of Casey Rodarmor, who conceived the “ordinal number theory” in 2022, according to which each Satoshi (the lowest BTC value) is assigned a unique number. which unleashed Bitcoin Ordinals as we know it today.
While it is true that NFTs in Bitcoin became popular thanks to the Ordinals Protocol, collectible token projects have long been linked to the main Bitcoin chain, such as the Counterparty Protocol.
Currently, Bitcoin NFTs have gained significant traction in the community. Until now, There are more than 67,000 registrations on the Bitcoin networkseveral websites for exchanging and selling ordinals and an increasingly growing community.
But just as he has his supporters, he also has his critics. There are those who believe that the Ordinals protocol only serves to inject “garbage” into the Bitcoin chain, which ultimately affects ordinary users. because the network is congested and transaction fees are increasing.
This is the case of developer Luke Dashjr, one of the main critics of Ordinals, who even suggests this a filter that would limit the block space However, this uses the protocol for registrations It was a proposal without consensus.