The former CEO of MicroStrategy, and a big supporter of Bitcoin, takes a look at the new protocol operating in the current year in the area of the largest cryptocurrency. He points out that Ordinals have the power to ignite innovation in programming.
What is Ordinals and how it affects Bitcoin
Ordinals is a popular tool for creating NFTs on Bitcoin that appeared in January, initiating a new wave of experimentation with the oldest cryptocurrency. The platform has contributed to the mass creation of BRC-20 tokens, which have received mixed reactions from the community. This is because they carry both opportunities and limitations.
The use of Ordinals has contributed significantly to the increase in fees on Bitcoin, which has been beneficial to miners who are paid to secure the network. However, for many members of the community, it has proven to be a significant impediment that has complicated the daily use of BTC as a peer-to-peer system.
Michael Saylor stressed that the Ordinals discussion is important because “Bitcoin miners need to be successful in the long term.” According to him, the development of applications based on Bitcoin’s functionality can help significantly accelerate the adoption of the cryptocurrency by individuals, companies and governments.
Bitcoin with more opportunities for corporations
Saylor did not provide specific use cases for Ordinals by MicroStrategy, but noted the potential for Bitcoin’s blockchain to store data that is not limited to transactions only.
“The whole concept of burning a piece of data into the blockchain opens the door to the possibility of burning digital signatures, registrations or hashes of documents,” – Saylor explained.
In the context of corporate security, Saylor compared this to DocuSign, which allows companies and individuals to securely send and sign contracts using an electronic signature. However, he noted that such a system makes large corporations dependent on a central database.
Bitcoin with equal access for all users
“Currently, businesses have weak security compared to Bitcoin,” – noted Saylor, suggesting that innovations using the world’s largest cryptocurrency could introduce a new level of security that does not currently exist.
Still, Saylor acknowledged that Ordinals have been used in inappropriate ways:
“We generally criticize things we think are stupid, but we don’t censor them.” – he declared.
Continuing he added:
“If someone wants to change the protocol to prevent others from using Bitcoin, I don’t think that’s consistent with the values of the community.”