Ordinals have introduced a new level of usage for Bitcoin by enabling the embedding of additional data such as tokens and images directly onto the blockchain. This study by BitMEX analyzes the changes occurring in the Bitcoin network.
Overview of Ordinals
According to BitMEX, there have been about 97.4 million Ordinal inscriptions in the Bitcoin network, of which approximately 92.5 million are BRC-20 token transactions, with around 2.7 million being image inscriptions. BRC-20 inscriptions significantly dominate the transaction count on the network, while image inscriptions account for a small share.
Node Validation Costs
The impact of Ordinals is also noticeable in Bitcoin’s block weight, which measures how much processing a transaction requires. BRC-20 inscriptions account for approximately 13.9 billion weight units, while images take up about 8.9 billion units. The research found that image inscriptions occupy a non-executed part of the Taproot witness field, providing validation savings. In contrast, BRC-20 inscriptions require signature verification, increasing computational overhead for nodes.
Performance Testing
BitMEX researchers conducted performance testing to assess the impact of Ordinals on the initial download and validation of blocks. The results indicated that larger Ordinals may have a weak positive correlation with faster verification speeds; however, overall, the results were deemed inconclusive.
Thus, the impact of Ordinals on Bitcoin presents a complex picture that ties together both advantages and disadvantages for various network participants. While there may be benefits for node operators, there are also negative aspects, including limitations on financial transactions.
