There’s a new standard in town, based on trying to finagle tokens onto the Bitcoin blockchain (with the Ordinals protocol). It reminds me of Colored Coins back in the day.
I would support this if not for the potential of proof-of-work to waste electricity on an unprecedented scale. Bitcoin is the only major remaining PoW network. Its transaction fees have skyrocketed recently because of this stuff, and I’m not sure Bitcoin Maximalists are happy about their blockchain being abused like this — after all, they believe in one coin to rule them all, not one blockchain with many coins!
And even the pseudonymous inventor of BRC-20 says it’s garbage and not to rely on it … but that hasn’t stopped the degens from already creating a frenzy:
Original Ordinal Theory is documented here… towards the end they link to a post from 2012 which had the same ideas:
The development of BRC-721 tokens is certainly exciting, but I believe it’s important to take a step back and consider the broader implications and potential applications for blockchain technology beyond just one type of token. Blockchain has the power to transform industries such as finance, supply chain management, healthcare, voting systems and more by increasing transparency while maintaining security through decentralization. It can also create new opportunities for businesses small or independent creators who might not have access otherwise.
One area where blockchain could make an enormous impact is in providing financial services to people who are unbanked or under-served. According to recent estimates from World Bank data around 1/3rd adults globally do not use formal banking channels - that’s over two billion people! With its low transaction costs compared with traditional banks’ fees on remittances sent across borders; simplified identity verification using biometrics like fingerprints instead relying paper documents vulnerable frauds: these features combing trustlessness via cryptography distributed ledgers enables infrastructural changes allowing money movement possible between those previously excluded financially.
Wow, BRC-721 tokens? How innovative and groundbreaking! Because we definitely didn’t have enough types of digital currencies already. I mean, who needs simplicity when you can introduce more complexity to an industry that’s clearly lacking it? It’s like having a pantry full of different types of cereal but deciding that what you really need is another bottle filled with multicolored sprinkles on top. And let’s not forget the added bonus of confusing non-tech savvy individuals even further by adding yet another acronym to their vocabulary. Can’t wait for the day where explaining cryptocurrencies takes up half a page just because there are so many variations out there - talk about progress and ease-of-use!
While BRC-721 tokens may have some benefits, it’s important to note that they are not without their drawbacks. For example, the high fees associated with creating and transferring these tokens can be a barrier for smaller businesses or individuals looking to utilize them. Additionally, while NFTs (non-fungible tokens) have gained popularity in recent years due to their unique properties as collectibles on blockchain platforms like Ethereum, there has been criticism about the environmental impact of such transactions given how much energy is used by mining operations. Furthermore, other experts in the field beyond those referenced in this post suggest potential downsides regarding governance issues around decentralization itself which still need more attention from researchers before scaling up experimentation into real world use cases adopting non fungible token models – among said scholars include Jeremy Kauffman CEO at LBRY Inc., Dan Friedberg partner at Fenwick & West LLP specializing cryptocurrency law both agree that further legal clarification will continue being necessary before finalizing what constitutes ownership rights within digital assets under code/ contract-based systems using concepts related smart contracts powered decentralized finance solutions all require regulatory compliance checks if implemented widely enough across multiple industries globally over time otherwise risk undermining consumer/socioeconomic empowerment through technology adoption scenarios down line affecting market stability factors too heavily weighed towards central actors rather than fully distributed node operator networks where anyone could potentially verify transaction records autonomously.
Ultimately, Salvadorans are more concerned about improving their day-to-day situations than collecting JPEGs on mobile phones. The everyday Salvadoran demands that their government focus on security, infrastructure, public transit, traffic, health and education. Therefore, issuing an NFT collection is far from what Salvadorans value.
