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Since BRC-20 was launched in March 2023, Bitcoin Ordinals have been one of the hottest topics in the cryptocurrency world. The Ordinals protocol allows people to create Bitcoin NFTs with ease. However, it's also led to sky-high network fees and other issues with excessive network traffic.
The BRC-69 token standard claims to solve the problem. This new Bitcoin Ordinals protocol could potentially revolutionize Bitcoin NFTs. Interested in seeing how BRC-69 works and whether it lives up to the hype? Keep reading to learn all about this new protocol.
Key Takeaways:
The BRC-69 standard is a method for inscribing information onto small pieces of Bitcoin called satoshis.
This standard uses a technique called recursive inscriptions to optimize block space usage by up to 90%.
It follows an efficient four-step process to generate the entire ordinal.
The BRC-69 standard is a method for inscribing information onto small pieces of Bitcoin called satoshis. Created by Luminex Launchpad, BRC-69 uses a technique called recursive inscriptions to optimize block space usage by up to 90%.
BRC-69's main goal is to inscribe data onto satoshis. These small particles of Bitcoin can hold images, text and other forms of media. However, finding enough space to store all this data can be tricky. BRC-69 solves that problem by using recursive inscriptions. Instead of inscribing all the data directly onto the blockchain, BRC-69 only inscribes a single line that can then programmatically render a full ordinal. Through recursive inscriptions, existing on-chain data can create new ordinals.
To get this impressive result, BRC-69 follows a four-step process. It begins by inscribing the basic traits of the ordinal onto the token. The creator of the ordinal then deploys a reference source that fully describes all attributes of the ordinals collections. Next, a compiler operation is used to make a Javascript program that can render the assets. Finally, the mint operation uses HTML inscriptions to generate the entire ordinal.
The BRC-69 token standard employs recursivity to save space, so Bitcoin Ordinals don't need to individually store massive amounts of similar data. Instead, all the data for an ordinal collection is only stored once, and each ordinal can reference it as needed. This cuts back on repeated data. When an ordinal is transferred, the Bitcoin network only has to process the single reference line instead of a bunch of digital assets.
Furthermore, BRC-69 simplifies the image rendering process on an ordinals explorer by automating it, thus removing unnecessary steps. This automation enables the initiation of pre-reveal collections and on-chain unveilings, which introduces an additional, thrilling element for both creators and users. The images can be displayed by any front end that has implemented recursive inscription, using the on-chain deploy inscription, thereby streamlining the entire procedure.
All of these changes to how ordinals are handled have resulted in additional blockchain activity. After Bitcoin Ordinals were launched, the number of transactions per day soared to over 600,000. However, as people realized that ordinals consumed massive amounts of space and charged high storage fees, interest dropped off and transactions slowed to around 350,000 per day. Since the release of BRC-69, however, the average number of daily transactions has spiked yet again. Throughout July, the number of transactions per day has repeatedly reached almost 600,000. Ultimately, BRC-69 has managed to reinvigorate the Bitcoin blockchain and draw more attention to Bitcoin Ordinals.
There are several benefits to working with the BRC-69 standard, but it also comes with some potential downsides.
Since BRC-69 recycles data, it ends up saving quite a bit of digital space. Ordinals made with BRC-69 are significantly smaller, which results in big cost savings for users. Since Bitcoin network fees are proportional to the byte size of the transaction, smaller ordinals mean lower fees. Users can buy, sell and trade Bitcoin NFTs without having to pay prohibitive fees.
The ability to save space with the BRC-69 Bitcoin standard also allows for more complex ordinals. Previously, ordinals had a limit of 4 megabytes because Bitcoin block spaces could only hold so much information. With BRC-69, the resultant ordinal can be much larger. The ordinal only holds a single line of text, but that line can load quite a bit of information. This allows for more detailed images, longer text and more complex videos.
In addition to providing space and storage savings, BRC-69 also has some unique features that could change how ordinals work. This token standard allows creators to automate the rendering process. When creating recursive inscriptions collections, people can choose exactly when and how the line of instructive text displays the full media of the ordinal.
Creators can design ordinal collections that are unveiled as part of a large event. They can also set up their ordinals to fully render once users fulfill other conditions. This helps to make Bitcoin NFTs more exciting and interactive.
While BRC-69 does save space and make it a little more affordable to process a Bitcoin transaction, it doesn't entirely solve the problem of congestion. When there are a lot of transactions on the chain, it can be hard for Bitcoin miners to validate transactions. Users can still end up paying extra to get their transactions validated, or waiting excessive amounts of time to finalize transactions.
Ultimately, if BRC-69 really takes off, it may end up causing some of the same problems as previous versions of ordinals. Any Bitcoin trend eventually reaches a certain level of popularity, after which mempool space is simply too scarce to handle the vast wave of transactions. Though it hasn't happened yet in this case, there’s always the possibility that BRC-69 could still cause congestion problems and overwhelm Bitcoin block spaces.
Both BRC-69 and BRC-20 are Bitcoin token standards, so they work in similar ways and have similar outcomes. These protocols allow users to inscribe data onto satoshis, which essentially creates an NFT attached directly to the Bitcoin blockchain. People can send and receive Bitcoin Ordinals just as with any other Bitcoin token, but at the same time, they can also look at unique types of images or other digital assets.
Despite having the same basic goal, BRC-69 and BRC-20 achieve it in two separate ways. With the BRC-20 Bitcoin standard, users embed JSON data into the metadata for the satoshi. This inscription must include all details of how the resulting ordinal will look and function. With BRC-69, however, users store all the details of the NFT elsewhere and only inscribe the satoshi with the retrieval information.
Ultimately, this change results in a far more efficient type of ordinal. BRC-69 ordinals optimize block space by 90% over BRC-20 ordinals. If you use the BRC-69 method, your NFTs are smaller in size, yet they can contain more information. In addition, unlike BRC-20 tokens that render instantly, BRC-69 also lets you select a specific rendering time.
Is the BRC-69 standard likely to become the preferred method for handling Bitcoin Ordinals? So far, it seems to be doing quite well. Since the introduction of this new standard, the Bitcoin network has been very busy handling NFTs. Users love that it saves space and allows them to trade NFTs without spending as much money on fees. If you like trading NFTs as an investment, expect to see more BRC-69 tokens in the future.
BRC-69 is still a relatively new token standard, but it's already making waves in the crypto community. Since recursive inscriptions can render ordinals without using much block space, BRC-69 lets people create NFTs more efficiently. This exciting development has the potential to make Bitcoin NFTs even more popular than they already are.
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