Bitcoin NFT Ordinals Boosts Taproot Adoption By 1,000% In Q1 2023
11 February 2023 - 08:51PM
NEWSBTC
The rise of Bitcoin NFT Ordinals is one of the fascinating
developments on the leading blockchain in 2023. This has correlated
with an increase in the adoption of Taproot to process
transactions. Driving Taproot Adoption On The Bitcoin Network
Data from Dune Analytics shows that Taproot adoption has gone from
being used in less than 2% of all Bitcoin transactions to reaching
a peak of 9.75% on February 10. This represents an increase of
1,000% and is largely due to the rise of Bitcoin NFT
Ordinals. These unique NFTs use the witness function in
transactions to include additional data expressed in a hexadecimal
system. With this, block sizes can be increased above the standard
1 MB limit to 4 MB, allowing minters to add images, audio, or even
games to the NFTs. Since the end of January, Ordinals NFT has
been on the rise despite being around since December. About 53,000
of these tokens have already been issued on the Bitcoin blockchain
in less than two weeks. Related Reading: Bitcoin Price Takes
Hit as Indicators Signal Fresh Bearish Wave According to data from
Dune Analytics, February 9, 2023, represented the day with the most
ordinals minted, with about 21,000 new tokens. Most of them
(20,895) included images; there were also 136 videos, two
applications, and two audio files, while the rest only had text.
Bitcoin Taproot And The NFT Debate In 2021 Bitcoin underwent
a major update known as Taproot, which improved scalability and
privacy for Bitcoin users. With Taproot, Bitcoin users can spend
less time and resources verifying transactions, and it supports
smart contracts and other sophisticated layers of Bitcoin.
Taproot is expected to impact how people use and interact with
Bitcoin significantly, and several projects are already utilizing
the technology. It is expected that Taproot adoption will
significantly increase the use of NFTs. By allowing users to
transfer ownership of digital assets quickly, Taproot makes it much
more convenient for people to engage in NFT transactions.
Additionally, Taproot makes it possible to create more
sophisticated smart contracts, which could lead to more advanced
NFTs. Furthermore, the increased privacy provided by Taproot will
likely make NFTs more secure and trustworthy. Related
Reading: Bitcoin Small Addresses Have Been Rapidly Growing, Here’s
What It Means Nevertheless, the rise of Ordinal NFTs has not been
without debate. Critics argue that an increase in the number of
transactions on the Bitcoin network will lead to clogging and a
rise in transaction fees. Beyond the debate, Ordinals NFTs are
not affecting the Bitcoin network, and their adoption is expected
to rise in the coming weeks. Bitcoin Price 2023 has
been a positive year for Bitcoin, with its price resurgence a major
talking point in the financial ecosystem. The leading
cryptocurrency moved from $16,500 to a year high of $24,000, with
the market sentiments currently bullish. At the time of
writing, Bitcoin is trading around $21,700, down 7% in the last
week. Featured image from Unsplash.com, charts from
TradingView.com
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