Binance Pool recently launched its “Ordinals Listing Service” allowing users to enter additional data on individual satoshis. This major breakthrough “transforms” these satoshis into Non-Fungible Tokens (NFT), thus opening up new perspectives in the world of digital assets.
The concept of Ordinals
THE Ordinals embody a real revolution in the way satoshis (the smallest unit of a Bitcoin) are perceived and used. Each Ordinal is a unique number assigned to a satoshi based on its mining date. This system allows additional data to be written directly to these units, making them unique and traceable on the blockchain. By allowing satoshis to be transformed into NFT, Binance Pool adds a new dimension to the versatility and usefulness of Bitcoin.
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To access this innovative service, the users must meet two essential conditions. First, they must have a Taproot address, a recent evolution of the Bitcoin protocol that improves the efficiency and confidentiality of transactions. Secondly, identity verification (KYC) is required. These measures not only guarantee a high level of security but also rigorous regulatory compliance.
Technical and functional implications
The service goes far beyond simple text registration. He allows you to enter a variety of data, including images and videos. These inscriptions are then stored permanently on the Bitcoin blockchain, which means that the data entered becomes immutable and indelible. Although the service offers great flexibility, it is important to note certain limitations. The size of registered files is limited to 300 KB, which may require compressing or resizing the data. Moreover, transaction fees are applied, calculated based on the Bitcoin networkwhich could influence users’ decision on the type and amount of data to enter.
What impact for the NFTs market?
The introduction of this service by Binance Pool could radically change the perception of NFTs and the Bitcoin blockchain. Until now, most NFTs were associated with blockchains like Ethereum. This new service expands the realm of possibilities by integrating NFTs into the Bitcoin ecosystem, which could have profound implications for their usefulness and intrinsic value. This development also represents a multitude of opportunities for various market players. Digital art creators, collectors, and even investors could find new ways to diversify their digital asset portfolios. Furthermore, this could spur the creation of new tools and platforms dedicated to managing and trading Bitcoin-based NFTs.
Regulation
The requirement of an address Taproot and identity verification (KYC) add an extra layer of security and legitimacy to the service. Binance reserves the right to modify or cancel this service at any time.in accordance with the terms and conditions set out in their original announcement.
Binance Pool’s Ordinals Listing Service marks a significant milestone in the evolution of Bitcoin blockchain functionality. By allowing the registration of additional data on individual satoshis, this service expands the possibilities related to digital ownership and asset management on the Bitcoin network.
Source : Binance