BitMEX founder Arthur Hayes and Domo, the anonymous developer behind the Bitcoin BRC-20 token standard, have joined forces in a $3 million pre-seed funding round for Bitcoin Ordinals wallet Oyl. This investment round was led by crypto asset manager Arca, with support from Kanosei and FlamingoDAO.
Oyl, set to launch in the coming weeks, will introduce “in-wallet” Ordinals trading. Ordinals introduces NFT functionality to Bitcoin by allowing data inscriptions on individual satoshis, the smallest unit of Bitcoin, similar to how cents are to a dollar. These data inscriptions can include various types of content, such as images, videos, audios, and even basic games like a primitive DOOM clone.
Building on the Ordinals breakthrough, Domo’s BRC-20 token standard enables the creation of tokens by inscribing data on satoshis. While similar to Ethereum’s ERC-20 standard used by prominent projects like Tether and Uniswap, BRC-20 lacks one key feature: robust smart contract capabilities.
Nonetheless, despite being initially offered for free by its creator, it’s garnering significant attention and traction, showcasing the advantages of open-source collaboration, a fundamental principle of the cryptocurrency ecosystem.
Exploring Bitcoin Ordinals and More
Exploring Bitcoin Ordinals and Its Potential Impact in the Post-Halving Economy
As the Bitcoin network gears up for the upcoming halving event, scheduled to occur around April 19, the significance of Ordinals within the ecosystem becomes increasingly apparent. During the halving, which occurs every four years, Bitcoin miners see a reduction in block rewards by half. This adjustment affects both mining revenues and the issuance of new Bitcoin. Historically, in previous halving events, Bitcoin prices have tended to rise as demand remains steady or even increases.
This year’s halving appears to follow a similar pattern, particularly given the heightened institutional demand for Bitcoin following the launch of eleven Bitcoin ETFs in January. Bitcoin recently reached a new all-time high of $69,255.77, as reported by CoinGecko, before retracing to $67,962.06 at the time of writing.
In this context, Ordinals transaction fees could emerge as a crucial alternative revenue stream for miners, constituting approximately 20% of their total revenue. As such, Ordinals may offer a valuable solution amidst the changing dynamics of the Bitcoin network post-halving.
Moreover, recent trends in the Bitcoin ecosystem indicate a growing interest in non-fungible tokens (NFTs) and layer 2 solutions. In early March 2024, Bitcoin NFTs recorded a remarkable $168.5 million in sales over seven days, surpassing Ethereum NFT sales during the same period. Additionally, Bitcoin’s expanding layer 2 network is enhancing the blockchain’s scalability and speed, allowing it to support various applications akin to those on Ethereum. This development underscores the evolving landscape of Bitcoin’s ecosystem, positioning it to offer functionalities comparable to those of Ethereum, a blockchain widely recognized for its commercial importance.
