The development of the Ordinals protocol by Casey Rodarmor initially aimed to “inscribe” text and imagery on the Bitcoin (BTC) network. However, recent events have seen the protocol shift over to Litecoin (LTC) and Dogecoin (DOGE), causing a significant increase in transaction volume on both networks for nearly a month.
Notably, on May 18, Dogecoin set a new record with 1.2 million transactions in just 24 hours, as per data from BitInfoCharts. Meanwhile, on May 10, Litecoin hit its peak daily transaction volume with 584,000 transactions. This sudden spike begs the question: what triggered such a significant boost in network activity?
The answer can be traced back to when Indigo Nakamoto, a pseudonymous Twitter user, offered 5 LTC (valued at approximately $500 at the time) to anyone capable of “porting” the Ordinals protocol to Litecoin. Eight days later, in February, software engineer Anthony Guerrera succeeded and launched the Litecoin Ordinals protocol. Dogecoin enthusiasts followed suit by replicating the protocol, dubbing it “Doginals.”
But the real driving force behind Litecoin and Dogecoin’s soaring network activity was the introduction of the LRC-20 and DRC-20 token standards in early May, enabling users to create and issue entirely new memecoins on both networks. Curiously, this dramatic increase occurred around the same time that the Ordinals inscriptions on the Bitcoin network reached a record high of 400,000 daily inscriptions on May 10.
The spike in Bitcoin Ordinals inscriptions can be linked to the introduction of the BRC-20 token standard, which, according to data from Ordinals scanner brc-20.io, has resulted in more than 24,000 new tokens being minted on the Bitcoin blockchain.
While some may view the successful adoption of the Ordinals protocol on Litecoin and Dogecoin networks as a positive development, others might argue that it increases strain on these networks. Balancing the benefits and drawbacks of this new technology is essential for understanding its true impact on the blockchain ecosystem.
Ultimately, the fluctuations in transaction volume within the LTC, DOGE, and BTC networks highlight the ongoing development and impact of the Ordinals protocol. As development carries on, both the blockchain industry and its network users will have to carefully weigh the pros and cons of implementing this technology to better understand its far-reaching consequences.
Source: Cointelegraph
