MicroStrategy Eyeing Ordinals’ Potential For Bitcoin Software Innovation
MicroStrategy co-founder and Executive Chairman, Michael Saylor, has expressed keen interest in the potential of Ordinals, a protocol that has been making waves in the Bitcoin community. In an exclusive interview with Decrypt at the Bitcoin 2023 conference in Miami, Saylor revealed that his software firm is actively exploring the application development possibilities offered by Ordinals.
Is MicroStrategy looking at Bitcoin Ordinals for potential app development? "We are, actually," @saylor tells @andrebeganski at #Bitcoin2023 in Miami.
More here: https://t.co/QVZeQv9JYE
— Decrypt (@decryptmedia) May 19, 2023
Ordinals for Application Development
Ordinals, which was launched in January, has sparked a new wave of experimentation with Bitcoin. It enables the creation of NFT-like assets on top of the cryptocurrency, although its adoption within the Bitcoin community remains mixed. Notably, the protocol has paved the way for innovative frameworks such as the experimental token-building system pioneered by the pseudonymous on-chain data enthusiast known as Domo in March. This breakthrough has resulted in the creation of thousands of so-called BRC-20 tokens.
While these developments have contributed to elevated transaction fees on the Bitcoin network, benefiting miners, they have also sparked concerns about accessibility and hindered the vision of Bitcoin as a peer-to-peer electronic cash system. Saylor stressed the significance of the Ordinals discussion, noting that the long-term success of Bitcoin miners is crucial. Additionally, the development of applications leveraging Bitcoin’s functionality has the potential to drive wider adoption among individuals, corporations, and even governments.
Data Embedding Possibilities with Ordinals
Although Saylor did not specify the use cases MicroStrategy is exploring with Ordinals, he emphasized the ability to embed various types of data on Bitcoin’s blockchain beyond traditional transactions. This capability opens up possibilities for burning digital signatures, registrations, or document hashes onto the blockchain. Saylor drew a parallel to DocuSign, highlighting the potential for innovations using Bitcoin to introduce a new level of security that surpasses proprietary databases currently relied upon by major corporations.
Addressing concerns about censorship within the Bitcoin community, Saylor emphasized the importance of not censoring developments like Ordinals, even if some use cases may appear trivial. He firmly believes that changing the protocol to censor certain uses goes against the community’s values. Instead, Saylor advocates for a rules-based approach without rulers, maintaining the integrity and openness of the Bitcoin network.
Saylor’s comments build upon his previous description of Ordinals as a catalyst for Bitcoin adoption. While he refrained from predicting the ultimate winner among competing protocols, his endorsement of Ordinals highlights its potential to drive innovation, enhance security, and broaden the adoption of Bitcoin in various industries.
