Bitcoin Ordinals emerged in 2023 as nonfungible tokens (NFTs) on the Bitcoin blockchain, sparking a divisive debate within the Bitcoin community. This debate, reminiscent of the block size debate in 2016, threatened to fracture the community just as Wall Street firms were preparing to issue Bitcoin ETFs. To prevent their collectibles from being nullified by Bitcoin core developers, supporters of Bitcoin Ordinals may consider a hard fork similar to Bitcoin Cash (BCH) and Bitcoin SV (BSV), allowing them to maintain their on-chain NFT dream.
A hard fork occurs when a blockchain splits into two, with the original fork continuing as the existing protocol and ledger. In this case, the original chain would no longer support Ordinals. The new fork, often claiming to be the true vision of Satoshi Nakamoto, introduces protocol changes, such as an increase in block size, and launches as a new coin.
Bitcoin Cash and Bitcoin SV are examples of such hard forks. Both communities argue that Satoshi intended for increased block size to enhance scalability. The ongoing debate between Bitcoin maximalists and Ordinal proponents centers around whether Ordinals undermine Bitcoin’s role as digital gold or electronic currency. Maximalists perceive Ordinals as a bug or an attack on the Bitcoin protocol, while proponents view them as innovative and made possible by core developers’ protocol changes, including Segregated Witness (SegWit) and Taproot upgrades.
The debate has intensified recently, with figures like Max Keiser and developer Luke Leighton leading the charge against Ordinals. However, Bitcoin core developers plan to address the issue by making it impossible to add Ordinals to transactions with Bitcoin Core v27, effectively fixing the perceived bug. Existing Ordinals would remain, as the update only prevents new ones from being minted. This demonstrates that developers and nodes hold the ultimate authority over Bitcoin’s protocol.
Rather than fighting against the Bitcoin community’s intention to eliminate future Ordinals at the protocol level, the Bitcoin Ordinal camp could follow the path of Bitcoin Cash and Bitcoin SV by forking and establishing a separate chain dedicated to Ordinals. This approach would protect their work from being nullified by core developers. The Bitcoin community’s resistance to wholesale protocol changes led to the hard forks of Bitcoin Cash and Bitcoin SV, making a similar path for Ordinals more likely to succeed than engaging in a contentious battle like the block size debate. Additionally, Bitcoin miners may favor an Ordinals chain due to the high transaction fees generated by Ordinals in 2023.
As Bitcoin faces division and internal conflicts, it risks compromising its core principles of decentralization and financial sovereignty as institutional money enters the space. Now is the time for the Bitcoin community to unite and consider another hard fork to preserve Bitcoin’s position as the world’s digital gold and electronic cash. A separate Bitcoin Ordinals chain presents a more viable solution than a full-scale confrontation.