Fix for Bitcoin Ordinals and BRC-20 Token Congestion

A Bitcoin Core developer has identified a bug fix that may halt the creation of new Ordinals and BRC-20 tokens. These tokens have been known to cause network congestion by exploiting a specific vulnerability in the system. 

Understanding the Vulnerability and Its Impact

Luke Dashjr, a prominent developer within the Bitcoin Core team, revealed this critical information in a post on X. He pointed out that Ordinals and BRC-20 creators have been using a technique called ‘inscriptions’ to embed data onto the smallest units of Bitcoin. According to Dashjr, this method uses a loophole in the Bitcoin Core’s coding to spam the blockchain, congesting the network.

Since 2013, Bitcoin Core has allowed users to limit the size of additional data in transactions. However, inscriptions have been cleverly disguised as program code. Therefore, they bypass this size limit. This bypass was not just an oversight but a direct exploitation of a bug in the system.

In a significant move, the latest update to Bitcoin Knots – a derivative of Bitcoin Core featuring less tested or sometimes experimental features – has addressed this bug. This update represents a crucial step in strengthening the network against such vulnerabilities.

The Implications of Fixing the Vulnerability

A user on X asked about the future of Ordinals and BRC-20 tokens if the vulnerability was rectified. Dashjr’s response was straightforward: fixing the bug would effectively end these practices. However, he noted that existing inscriptions would remain unaffected.

Despite these developments, Dashjr expressed concern that Bitcoin Core’s upcoming v26 release still harbors this vulnerability. He hopes the issue will be resolved in the v27 release, slated for the next year.

Ocean, a decentralized mining protocol where Dashjr is the chief technology officer, also weighed in on the issue. They stated on X that the Bitcoin Knots upgrade addresses a long-standing vulnerability exploited by what they termed ‘modern spammers.’ 

With this fix, Ocean anticipates a future where blocks will consist of more genuine transactions, indirectly suggesting that Ordinals inscriptions are equivalent to a denial-of-service attack on the Bitcoin network.

The Controversial Nature of Ordinals

Luke Dashjr has been a vocal critic of Ordinal inscriptions. He asserts they cause significant and irreversible damage to Bitcoin and its users, including those in the future. He firmly believes that ordinals have been an attack on Bitcoin from their inception.

Launched in January 2023 by Casey Rodarmor, the Ordinals protocol allows users to inscribe data and non-fungible tokens (NFTs) onto the Bitcoin blockchain. This innovation, while creative, has led to increased network congestion and, consequently, higher transaction fees.

This recent discovery and the subsequent update to Bitcoin Knots mark a pivotal moment in Bitcoin’s ongoing evolution. The debate around Ordinals and the use of Bitcoin’s blockchain for NFTs continues to be a hot topic. The outcome of these developments could redefine the future trajectory of Bitcoin in many ways.

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