Bitcoin’s Ordinals Protocol Creates Ripple Effect on Litecoin and Dogecoin

By 0xK2 05/21/23 2:30 AM

The recent hype surrounding Ordinals and memecoin projects on Bitcoin has spilled over to affect Litecoin and Dogecoin. This development has led to record-breaking daily transaction volumes across all three blockchain networks.

According to data from BitInfoCharts, the three largest proof-of-work blockchains by market capitalization now collectively facilitate over 2 million daily transactions. Bitcoin recorded 579,260 transactions, Litecoin saw 363,885, and Dogecoin hit a staggering 1.126 billion transactions.

The Ordinals protocol, released by software engineer Casey Rodamor in January, allows users to send and receive individual satoshis, the smallest denomination of Bitcoin (1/100,000,000 BTC). The significant upgrade here is that these transactions can include recorded data such as videos or images, going beyond mere transactional data storage.

In March, an innovative creator known by the alias Domo introduced a new token standard on Bitcoin called BRC-20, enabling developers to deploy, mint, and transfer tokens on the Bitcoin blockchain.

Since Litecoin is a fork of Bitcoin and Dogecoin is derived from Litecoin’s code, there is a certain interconnectedness among them. This has led to the cross-pollination of the Ordinals technology from Bitcoin to these other networks.

Meanwhile, the BRC-20 standard, as well as the LTC-20 and DRC-20 standards, draw inspiration from Ethereum’s ERC-20 tokens.

Data from OrdSpace reveals that there are currently over 18,341 tokens issued on the Bitcoin network, with a total market capitalization of $440 million.

This surge in activity highlights the growing interest in alternative tokenization and data storage solutions within the Bitcoin ecosystem. While Bitcoin’s primary focus has traditionally been on being a store of value and a means of exchange, these recent developments demonstrate the network’s potential for expanding its functionality beyond its original scope.

As the Ordinals and memecoin craze continues to drive excitement, it remains to be seen how these innovations will shape the future of Bitcoin, Litecoin, and Dogecoin, and what implications they may have for the broader cryptocurrency landscape.

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