What do Ordinal Inscriptions Mean for the Future of Bitcoin?

What do Ordinal Inscriptions Mean for the Future of Bitcoin?

A great deal of buzz has been generated by a novel type of non-fungible tokens known as Ordinal inscriptions. What sets these NFTs apart is that all of their data is etched onto the Bitcoin blockchain, diverging from Ethereum NFTs which are reliant on off-chain metadata that can be altered. Here’s a closer look at Ordinal inscriptions and their potential impact on the future of Bitcoin.

Ordinal inscriptions are a type of NFT that can be created on the Bitcoin blockchain, which allows for all of the data to be directly inscribed on the chain. This is in contrast to Ethereum NFTs, which rely on off-chain metadata. Due to this distinction, Ordinals are considered a potential solution to the challenges that are associated with Ethereum NFTs.

Ordinal inscriptions serve as a means of organizing data on the Bitcoin blockchain. The Bitcoin blockchain functions as a decentralized ledger of all Bitcoin transactions, and Ordinal inscriptions provide a unique identifier for each transaction.

While these identifiers are useful for tracking and verifying transactions, there are concerns about the potential for issues, such as “transaction malleability,” to arise as a result of Ordinal inscriptions. Some experts have raised concerns in this regard.

The term transaction malleability refers to the ability of a third party to modify a transaction ID without altering the transaction itself. This can result in confusion and make it more challenging to track and verify transactions.

The concern with Ordinal inscriptions is that if they are not used correctly, they may lead to an environment in which transaction malleability is more prevalent. This could have the effect of making it harder to rely on Bitcoin as a secure and dependable method of payment and transfer.

Fortunately, many experts in the crypto community are aware of the potential risks associated with Ordinal inscriptions and are taking steps to mitigate them. One of the most significant efforts in this regard is the implementation of Segregated Witness (SegWit).

SegWit is a software upgrade that allows for more efficient use of the Bitcoin blockchain by separating signature data from transaction data. This helps to decrease the size of transactions and reduces their susceptibility to malleability.

Beyond SegWit, ongoing efforts are being made to develop other solutions to address the potential risks associated with Ordinal inscriptions. The Lightning Network is one such solution, as it is a layer of two solutions that enables faster and less expensive Bitcoin transactions by conducting them off-chain.

Should you be concerned? If you are a casual Bitcoin user, you likely do not need to be overly concerned about Ordinal inscriptions. The potential risks associated with them primarily affect those involved in more complex Bitcoin transactions, such as multi-signature wallets or smart contracts.

Despite the potential benefits of Ordinal inscriptions, there has been a lot of debate over whether they are a “good use” of block space. As more Ordinals are being inscribed, the cost of Bitcoin transactions has risen. Ordinals introduce additional, non-financial data on the Bitcoin blockchain, which can bog down on-chain confirmation times. This includes images, audio clips, and even games. Those not in favour of Ordinals see this as an impediment to the ability of Bitcoin to scale and reach full global adoption.

Inscribing non-fungible characteristics to satoshis, the individual increments of Bitcoin, may challenge its use in place of conventional currency. Ordinals challenge the fungibility of satoshis on the Bitcoin network, as all satoshis should be equal, or they begin to lose a significant trait of money. But Ordinals can alter the value of these units of money, much like rare collectible coins. This debate over whether these individual units must be deemed equal is unfolding before our eyes and needs to be understood.

Bitcoin is money, and that’s the largest and most important use case, impacting the most people in the world. In the end, I believe that Ordinals will remain niche. While Ordinals may be viewed as exciting, they are unlikely to become the go-to choice for many people who use Bitcoin’s block space.

Ultimately, the markets decide. One of the biggest yet baseless claims is that Bitcoin doesn’t evolve or change. While there may be some truth to this, any changes to the protocol should be slow and methodological. Ultimately, the markets will decide whether Ordinal inscriptions are a viable solution for the challenges associated with Ethereum NFTs.

One key factor to remember about Bitcoin, and any other digital asset, is that its success depends on market demand. If the market values the features offered by Ordinal inscriptions, then they are likely to be adopted and integrated into the Bitcoin network. However, if the market does not value them, then they will remain a niche offering.

While Ordinal inscriptions may pose some potential risks to the Bitcoin network, the crypto community is actively working to address these issues. As long as you take appropriate precautions to protect your Bitcoin holdings, there’s no need to be overly concerned about this discussion in the short term. In fact, these discussions help to strengthen and test the resilience of the Bitcoin network. I see lots of positivity in this.

 

Source: https://intpolicydigest.org/what-do-ordinal-inscriptions-mean-for-the-future-of-bitcoin/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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The Future starts Tomorrow – Everything about NFT, Metaverse and Web3

The Future starts Tomorrow – Everything about NFT, Metaverse and Web3

NFTs (Non-Fungible Tokens) are unique digital assets that use blockchain technology to prove their ownership and authenticity. NFTs can represent a wide range of digital content such as images, videos, audio files, virtual real estate, and more. They cannot be duplicated or divided, as each NFT is unique and represents a one-of-a-kind item.

The metaverse refers to a virtual universe or a collective space where users can interact with each other and with virtual objects, often in the form of computer-generated graphics and simulations. The metaverse is often seen as a decentralized and immersive alternative to the traditional internet, and NFTs play a crucial role in representing and transferring ownership of virtual assets within it.

Web3 refers to the next generation of the internet, where users have more control over their data and online identity. Web3 technologies, such as blockchain, aim to create a more decentralized, secure, and user-centric internet, where users can interact and transact without intermediaries. The metaverse is often seen as a crucial component of the web3 vision, as it provides a space for users to interact and transact using Web3 technologies.

I have mentioned the following during the event:

In 2023, there are several financial trends and challenges that people should pay attention to:

Interest rates: Interest rates are likely to remain low, which could have an impact on investments and the housing market. Defi could come back in the later part of the year as a form of hedge to the high interest rate.

Inflation: With the ongoing global economic recovery and increasing demand for goods and services, there is the potential for inflation to rise, which could affect the purchasing power of consumers.

Digital currencies: Digital currencies, such as Bitcoin and Ethereum, are likely to continue to gain popularity, and they may pose both risks and opportunities for investors. It’s important to understand the technology and the market before investing thoroughly. On the one hand, cryptocurrencies are often seen as a hedge against inflation, as they are decentralized and not controlled by a central authority. In times of high inflation, some investors may see cryptocurrencies as a safe haven for their wealth, which can drive up demand and increase the value of cryptocurrencies.

Environmental, Social, and Governance (ESG) Investing: ESG investing is becoming increasingly popular as people become more conscious of the impact their investments are having on the environment and society. This trend is likely to continue in 2023, and there will be opportunities for investors to put their money into companies that align with their values. We may see “green bitcoins” as a popular thing, or crypto with renewable/ alternative properties would be popular.

Emerging markets: Emerging markets eg Kenya, for example. are likely to present significant investment opportunities in 2023, particularly in areas such as technology, infrastructure, and consumer goods. I see gaming and the metaverse a big thing in emerging markets.

It’s important to keep in mind that these trends and challenges are subject to change based on global economic and political events, and it’s essential to consult with a financial advisor and thoroughly conduct research before making any investment decisions.

More insights can be found on the recording.

 

This event was organise on 4th Feb. 2023 21:00pm SGT (17:00pm Dubai Local Time)

Hosted by:

Tomorrow Conference (https://twitter.com/tmrwconf) and
Blockcast.cc (https://twitter.com/Blockcastcc)

Co-Host:

Bybit NFT (https://twitter.com/Bybit_NFT)
Bybit Web 3(https://twitter.com/Bybit_Web3)
Bybit MENA (https://twitter.com/BybitArabic)

Moderator:
Scott Tripp, Marketing Lead of Blockcast.cc

Guests:

Sam Aly, Country manager of Bybit MENA Region
Zoran Tadic, Program director of TMRW Conference
Martina Andjelkovic, Head of marketing of TMRW Conference
Jenny Zheng, BD Lead of Bybit web3
Dr. Ran, ETHF Core Member
Anndy Lian, Book Author of NFT: From Zero to Hero

 

 

To conclude, NFTs, metaverse, and web3 are interconnected concepts that together represent a vision for a decentralized, immersive, and user-centric digital world where ownership, authenticity, and interaction can be managed in new ways.

Listen to the event on Spotify: https://open.spotify.com/episode/7IeL6eHqNaruFjD1RPbUlJ

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Experts Discuss The Future Of Blockchain

Experts Discuss The Future Of Blockchain

Businesses using blockchain must operate within existing financial rules to avoid running into issues with their regulators.

Blockchain and cryptocurrency are some of the digital transformation technologies to watch out for this year.

In a Webinar organized by Kenya National Innovation Agency (Kenia) under the theme Redecentralise, Revalue and Reform Blockchain Businesses In 2023, Dr Tonny Omwansa, CEO, Kenia and Anndy Lian Inter-Governmental Blockchain Advisor and Book Author discussed key issues revolving around the usage of blockchain and cryptocurrencies.

On matters of regulation, Lian asked businesses not to push governments too hard noting that it takes between 2-3 years for a proper legal framework to be put in place.

Lian said it would be much easier for businesses to push blockchain and cryptocurrency usage approval through researchers, lobbyists and think tanks.

“Regulators work very closely with think tanks. Talk to your leaders, researchers and lobbyists and they will help you get to your regulators,” he said.

Dr Omwansa noted that regulators take a long time to approve some of the laws touching on the two technologies because it is their duty to protect their citizens.

Overall, the use of blockchain in digital transformation can lead to increased security, transparency, and efficiency in various industries. It was agreed that companies can improve their relationship with the government if they use blockchain in some of their processes such as record keeping.

When using these technologies, businesses were advised to operate within existing financial rules to avoid running into issues with their regulators.

While blockchain and cryptocurrencies are being touted for decentralization, Lian said it would be best if businesses to avoid going to extremes to cut off the government.

 

 

 

 

Source: https://cioafrica.co/experts-discuss-the-future-of-blockchain/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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