TL;DR
The extra in style Ordinals get → the extra are created → the extra miners get their palms greased → the upper the typical transaction charges turn into on Bitcoin.
That is nice for miners (who not solely course of transactions, however hold the community protected n’ safe)!
…however not so nice for anybody trying to ship Bitcoin at an inexpensive value.
Full Story
Image this:
It is your folks birthday, and also you’re making an attempt to get in to their favourite bar with a large cake, balloons, social gathering favors and so forth.
However the bouncer out entrance is not about to permit that type of paraphernalia into the bar.
…until you grease his palms – wherein case, he’ll present you to the service entrance across the nook and allow you to take your contraband into the venue.
That is form of how Bitcoin Ordinals (aka Bitcoin NFTs) work.
For those who have been to try to use Bitcoin’s ‘entrance door,’ any transaction better than 400kb can be rejected – which is okay, since you’re by no means going to succeed in that restrict when solely sending Bitcoin.
…however in the event you wished to ship a Bitcoin Ordinal (which may very well be a picture, video, small piece of software program – something code-based actually), you’d want to make use of the ‘aspect door.’
Which suggests greasing the palm of a miner – sufficient to persuade them to can help you course of as much as 10x the standard transaction restrict (4mb, as an alternative of 400kb).
And all of this feeds the ‘high-fee flywheel’:
The extra in style Ordinals get → the extra are created → the extra miners get their palms greased → the upper the typical transaction charges turn into on Bitcoin.
Which is nice for miners (who not solely course of transactions, however hold the community protected n’ safe)!
…however not so nice for anybody trying to ship Bitcoin at an inexpensive value.
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