The cryptocurrency industry has been the centre of innovation, bringing forth novel and unique ideas to the market. Binance Pool, one of the prominent crypto mining arms of Binance, has gone a step ahead when it comes to offering innovation and novelty. The company recently launched a new service that allows users to inscribe data onto the Bitcoin Blockchain. This Service is called Ordinal Inscription Service and makes it easier for the users to inscribe data onto individual satoshi, creating distinct digital artifacts on Bitcoin. This feature adds an intriguing layer to the world of cryptocurrencies but has also raised concerns regarding its role in the Bitcoin network.
About Ordinal Inscription Service
Ordinal Inscription Service presents itself as a revolutionary tool from the Binance Pool that allows the users to inscribe data into individual satoshi which is the smallest unit of Bitcoin. Using the tool the community can craft unique digital artifacts that are securely stored on the network as per the announcement from the team. The Service is powered by the Taproot upgrade which is a new type of Bitcoin address that is known to be more efficient and secure than the traditional Bitcoin addresses. The Ordinal protocol gained significant tractions earlier this year with its ability to
How Does the Service Work?
To use the Ordinal Inscription Service, the users must first complete their identity verification process (KYC) to ensure their legitimacy. Once the identity has been verified. The users must possess a Taproot address which is Bitcoin’s most latest and advanced address format also known as P2TR or Bech32m. The address is characterized by its prefix “bc1p” and is supported across all Bitcoin wallets. With these prerequisites in place, the user can be a part of the inscription process, choosing from three distinct types: BRC-20, a single image, or text inscription types.
The BRC-20 option involves the deployment phase before minting which is governed by the rules set during the deployment. Once configured, users can mint several BRC-20 tokens in a single go. For the users wishing to create images on the blockchain, there’s the simple image option. However, due to Bitcoin’s block size limitation, the files must be under 300KB. In case the files are larger, it is resized, compressed, and converted to WEBP format removing all the metadata for security purposes. The last option is for text enthusiasts. Binance pool allows single text input with a maximum size of 300KB. However, it is important to note that the tool does not support batch inscription.
The inscription will be sent to the addresses of the users after the payment of network and service fees. This process might take a few hours on days depending on the demand.
Cautions and Debates over the New Tool
The team has made it very explicit that the users must be careful in the use of the tool as the inscriptions once generated are permanent and cannot be altered or deleted. They further state that the company does not promise to offer the ability to trade or even transfer the inscriptions after their creation. The growing popularity of the Ordinal Service not only created a dramatic surge in the transaction and fees but also raised questions on whether the inscription should exist on the network or not.
Binance Pool’s new tool, Ordinal Inscription Service offers a sense of personalization and uniqueness to the holding of the users. With their ability to inscribe data onto individual satoshi, creating distinct digital artifacts on Bitcoin, the company has added a new layer of innovation to the market. However, it has sparked debates within the community about the success and future of Bitcoin.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
