A recent development in the Bitcoin network involves a bug fix that could potentially halt the creation of new Bitcoin Ordinals and BRC-20 tokens, which have been contributing to network congestion. This fix addresses a vulnerability that Bitcoin Core developer Luke Dashjr claims is being exploited.
In a post on X (formerly Twitter) on December 6, Dashjr explained that inscriptions, a method used by Ordinals and BRC-20 creators to embed data on satoshis (the smallest unit of Bitcoin), have been exploiting a vulnerability in the Bitcoin Core software. This vulnerability allows them to bypass limits on extra data in transactions by disguising their data as program code. These limits have been part of the Bitcoin Core code since 2013.
The loophole that allowed inscriptions to exceed this limit has been rectified in the latest update of Bitcoin Knots, a derivative of Bitcoin Core that incorporates less tested or experimental features. This update could significantly impact the creation of Ordinals and BRC-20 tokens.
Responding to a user’s query on whether fixing this vulnerability would mean the end of Ordinals and BRC-20 tokens, Dashjr affirmed that it would, although existing inscriptions would remain unaffected. He also noted that the upcoming v26 release of Bitcoin Core still contains this vulnerability, expressing hope for a fix in the v27 release next year.
Ocean, a decentralized mining protocol where Dashjr serves as the chief technology officer, announced on X that the Bitcoin Knots upgrade addresses this long-standing vulnerability exploited by what they refer to as “modern spammers.” Ocean indicated that, following the update, its blocks would include more genuine transactions, suggesting that Ordinals inscriptions are akin to a denial-of-service attack on the Bitcoin network.
Dashjr has been a vocal critic of the Ordinals protocol, which was launched in January 2023 by Casey Rodarmor. This protocol allows users to inscribe data and Non fungible tokens (NFTs) onto satoshis. Dashjr has expressed strong opposition to Ordinals, viewing it as harmful to Bitcoin and its users, both current and future.
The Bitcoin network has experienced increased congestion recently, attributed to the rise in inscriptions and BRC-20 token minting. Data from mempool.space shows over 275,000 unconfirmed transactions, with the cost of medium-priority transactions rising to approximately $14, up from around $1.50. This congestion highlights the ongoing challenges and debates surrounding the evolution and scaling of the Bitcoin network.
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