Following the introduction of the Ordinals protocol for non-fungible tokens (NFTs) in January 2023, the average size of a Bitcoin block has exceeded 2.5 megabytes (MB) for the first time since the inception of the cryptocurrency in 2009, setting a new record. Blockchain.com’s statistics show that the size of Bitcoin blocks grew by over 2 MB during the weeks following the launch of the Ordinals protocol, with this surge in block size being attributed to February 2023.
The Ordinals protocol was introduced by software developer Casey Rodarmor in January, and it enables Bitcoin network users to create digital artifacts such as JPEG photographs, PDF documents, and audio and video files. According to Rodarmor’s documentation, each digital object can be inscribed to a single satoshi, which is a constituent part of Bitcoin, with one bitcoin being equal to 100,000,000 satoshis.
Individual satoshis can be imprinted with any kind of data, resulting in unique digital artifacts that are exclusive to Bitcoin, and these artifacts can be stored in Bitcoin wallets and transferred via Bitcoin transactions. The inscriptions are just as permanent, immutable, secure, and decentralized as Bitcoin itself.
The Bitcoin community is divided on the issue of whether it should be possible to engrave digital items into the blockchain, and there are reasons for and against the proposal that are worth considering. The increased use of block space for Ordinal inscriptions is one of the primary topics of discussion.
Between July 2021 and February 2023, the typical size of a Bitcoin block ranged from 0.7 to 1.5 megabytes. The average block size exceeded 2 megabytes for the first time on February 5 and is currently hovering around 2.2 megabytes. The introduction of Ordinals has also resulted in the network reaching a new high of 44 million non-zero addresses, according to Glassnode’s statistics. The latest Glassnode newsletter reports that Ordinals compete for block space demand, but they have not yet materially influenced network pricing.
Glassnode has referred to the introduction of Ordinals as a “new and unique point in the history of Bitcoin” because it can stimulate network activity even without the “classical transfer of currency volume for monetary objectives.”
