The introduction of ordinary inscriptions to Litecoin.
Few days ago, Twitter user Indigo Nakamotoist made a 5 LTC offer to anyone who could also add Ordinals NFTs to Litecoin.
Four additional such proposals were made after that, increasing the total reward to 22 LTC.
Developer Anthony Guerrera responded to the plea, claiming that Litecoin is the only other blockchain on which Ordinals may function because of SegWit and Taproot, despite the fact that 22 LTC are currently only worth slightly more than $2,000 in total.
Guerrera made a triumphant public announcement a short while ago:
He also revealed a few days ago that he has developed the first Ordinals NFT on Litecoin:
It’s important to note that just 7 LTC out of the 22 promised have arrived to the Litecoin address he specified to collect the incentive.
the purpose and objectives of the Litecoin launch
The purpose of this endeavour appears to be to enable the trading of Ordinals NFTs without the need to pay the substantial costs associated with registering transactions on the blockchain of Bitcoin.
In fact, as of right now, although the average transaction cost on the Bitcoin blockchain is roughly $1.6, it is less than a tenth of that on the Litecoin blockchain, at about $0.01.
The major worry raised by the introduction of Ordinals NFTs to the Bitcoin blockchain is specifically the potential for a significant rise in the volume of transactions, which might drive up the price even more.
In contrast, Litecoin does not carry this danger because it still has plenty of space to grow in this area and because there are now few transactions being recorded on its blockchain each day.
It is sufficient to note that daily transactions on the Litecoin blockchain seldom exceed 120,000, but daily transactions on the Bitcoin blockchain almost never go below 200,000.
Moreover, although a new block is normally added to the Bitcoin network every 10 minutes, Litecoin’s blockchain only requires two, allowing for the recording of five times as many blocks.
Hence, now that Ethereum has switched to Proof-of-Stake, this might be a reasonable way for continuing to support NFTs even on Proof-of-Work based blockchains without adding to the already crowded Bitcoin blockchain.
NFTs and Ordinals on Bitcoin
There have already been more than 154,000 registrations, according to data from Dune.com, and Taproot usage has significantly increased since the project’s inception.
Just a few weeks ago, in mid-January 2023, the launch took occurred, sparking a number of debates, particularly among Bitcoin maximalists.
On the one hand, there is concern that fees would increase excessively, but there are also people who object to using the Bitcoin protocol for purposes unrelated to the goal of developing a decentralised currency.
But, there is currently a substitute, which may potentially be the cause of Litecoin’s resurgence.
The cost of LTC.
The price of LTC has actually decreased during the past three days after Guerrera revealed that he has released Ordinals on Litecoin. Yet since this technology hasn’t been widely used yet, it might potentially end up being a passing fad.
Moreover, since November 2022, the cost of Litecoin has increased significantly, from $50 to $93, nearly doubling. This increase is likely brought on the anticipation of Litecoin’s scheduled halving this spring.
In fact, it should be noted that the price of LTC reached its 2022 annual low in June at $43, but had already climbed to $78 by the end of November.
In other words, it’s probable that in recent weeks some overexcitement over the price of LTC had already been focused, which later started to dissipate as the price increased to approximately $104 on February 16.
The announcement that Ordinals had begun trading on the Litecoin blockchain did not stop this most recent brief downward wave.