TL;DR
The extra well-liked Ordinals get → the extra are created → the extra miners get their palms greased → the upper the common transaction charges grow to be 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 seeking to ship Bitcoin at an inexpensive price.
Full Story
Image this:
It is your mates birthday, and also you’re attempting 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.
…except 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.
Should you had been to try to use Bitcoin’s ‘entrance door,’ any transaction higher than 400kb could be rejected – which is okay, since you’re by no means going to succeed in that restrict when solely sending Bitcoin.
…however if you happen to needed to ship a Bitcoin Ordinal (which could possibly be a picture, video, small piece of software program – something code-based actually), you’d want to make use of the ‘facet 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 a substitute of 400kb).
And all of this feeds the ‘high-fee flywheel’:
The extra well-liked Ordinals get → the extra are created → the extra miners get their palms greased → the upper the common transaction charges grow to be 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 seeking to ship Bitcoin at an inexpensive price.
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