Last month, certain Bitcoin coders expressed discontent over the logjam created by memecoins on the Bitcoin network, while some put forth alternative solutions.
Bitcoin blockchain coders/validators are considering the removal of memecoins running on the Bitcoin blockchain, putting them at potential risk. This decision comes in the wake of a significant surge in Bitcoin blockchain gas prices last month, attributed to the heightened network activity fueled by Bitcoin-based memecoins such as PEPE.
Following the breaking news, the price of PEPE has plummeted by over 6% in the past 24 hours. At the time of this press release, PEPE is being traded at $0.0000012.
The situation caused a significant logjam on the Bitcoin blockchain, leading to crypto exchange Binance temporarily suspending withdrawals. Consequently, Bitcoin proponents and coders are now deliberating on the potential impact of future frenzied trading involving memecoins like PEPE. They are concerned that such activity could further congest the network, impeding Bitcoin’s utility for seamless payments and as a reliable store of value.
Bitcoin coders are considering the implementation of software designed to function as a spam filter, effectively blocking memecoin transactions. In an interview with Bloomberg, Bitcoin developer Ali Sherief expressed concerns, stating,
“I do think the system is being abused. Bitcoin was never intended to serve as a base layer for meme tokens. Worthless tokens jeopardize the seamless and regular utilization of the Bitcoin network as a peer-to-peer digital currency.”
Nonetheless, advocates of Bitcoin Ordinals have stepped forward to support the cause. They have been working on the BRC20 standard, which enables the BTC blockchain to accommodate a large volume of NFTs, memecoins, and other digital collectibles.
Developer Casey Rodarmor pioneered Ordinals, a platform that allows users to embed digital content like images, videos, and texts onto Satoshis, the smallest unit of Bitcoin. Subsequently, the introduction of Bitcoin Request for Comment (BRC-20) sparked a massive surge in memecoins.
Presently, the Bitcoin blockchain hosts approximately 25,000 memecoins, collectively amounting to a market capitalization of nearly $500 million.
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Bitcoin memecoins spark a frenzy
In the last month of May, NFTs constituted a significant 65% of the total transactions on the Bitcoin blockchain. Throughout the month, the average fee per transaction surged to as high as $30 before gradually settling at $4 by the end of the month. Interestingly, the spike in gas fees proved advantageous for Bitcoin miners, who collectively earned a staggering $45 million from activities related to Ordinals.
Bitcoin developer Luke Dashjr, considering Ordinals transactions as spam, advocates for keeping them off the Bitcoin blockchain. Expressing his views in a developers’ group, Dashjr emphasized the need for action, stating, “Spam filtration has been a standard part of Bitcoin Core since day 1.”
Various other crypto enthusiasts have also contributed to the discussion, proposing intriguing solutions. Among these suggestions is the concept of creating a separate version of the Bitcoin blockchain, achieved through a hardfork, exclusively supporting Ordinals transactions.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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