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The Bitcoin industry is constantly evolving! Recently, a new trend has emerged that has a significant impact on miners’ income: the introduction of Ordinals and Runs. Let’s find out how these two innovations have contributed to a substantial increase in the subsidies of Bitcoin miners.
The Impact of Ordinals and Runs on the Bitcoin Blockchain
Ordinals are an innovative method for writing unique, immutable data directly into the Bitcoin blockchain. Unlike traditional NFTs that reside on blockchains like Ethereum, ordinal companies take advantage of Bitcoin’s proven security and decentralization. Each sequence character represents a different digital item, be it a work of art, a documentary, or even a video game. It is indelibly written on a specific satoshi, the smallest unit of Bitcoin.
Runes, on the other hand, are scripts or programs that run on the Bitcoin blockchain. These offer a new layer of functionality and enable more complex transactions and smart contracts. Although similar to those found on other blockchains, Runes excel in the robustness provided by the Bitcoin network. This increased functionality leads to higher transaction fees as users are willing to pay more for more sophisticated operations.
Mining subsidies are on the rise!
With the introduction of ordinals and runes, Bitcoin miners have seen transaction fees increase! This contributed to an increase in their total endowment. After the most recent Bitcoin halving, which cut the block reward in half, miners had to look for alternative sources of income to maintain profitability.
Transaction fees generated by Ordinals and Runes provide this necessary resource and offset the decline in block rewards. While exact numbers vary, this innovation has potentially allowed miners to earn tens or even hundreds of additional dollars per block, depending on demand and transaction complexity.
The adoption of ordinals and runes by the Bitcoin community illustrates the blockchain’s ability to innovate and adapt. Not only did this development strengthen Bitcoin’s position as a leader in the crypto space, but it also ensured a stable source of income for miners in the post-halving period.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
