Okay, let's cut to the chase. The US National Vulnerability Database (NVD) just dropped a bombshell: Bitcoin inscriptions are now officially a cybersecurity risk. That's the kind of news that should make you sit up and pay attention, especially if you're one of the millions using Bitcoin daily. This isn’t one of those abstract crypto discussions, this is your dollars and cents and the ease with which you can circulate them.
Is Bitcoin Becoming Unusable Again?
Remember the bad old days of 2017? Transactions taking hours or in some cases days, fees that could rival a bank wire? That’s exactly the kind of nightmare scenario we’re likely looking at once more, all because of these inscriptions.
Inscriptions are currently taking advantage of a loophole in Bitcoin Core. This loophole is how they are able to get around the data carrier exemption. Think of it like this: Bitcoin's blockchain is supposed to be a highway for financial transactions. But inscriptions are the equivalent of oversized trucks loaded with toilet paper, which nobody should be transporting on that road. This bypass was used by the Inscriptions collective in 2022 and 2023.
The Ordinals protocol is the biggest engine of this. These inscriptions, in effect, inscribe additional information into satoshis, permanently altering them and bloating the blockchain. It's like tattooing graffiti all over the Mona Lisa – it's there forever, and it arguably diminishes the original value.
Who pays the price? You do. Each time the network becomes congested, transaction fees reach record highs. Now that little Bitcoin payment to your friend is going to end up costing you more in fees than the size of the payment. Is this truly the future of finance we imagined?
Will This Crash Bitcoin's Scalability?
This is not just a concern of fee. This is about the Bitcoin’s core scalability in general. The larger the network becomes with transactional vs non-transactional data, the larger the network grows exponentially. That means longer download times, longer time to sync and longer time to process transactions. It's a death by a thousand cuts for Bitcoin's performance.
Think of it like a city's infrastructure. Consider what would happen if just overnight, everyone decided to start constructing huge warehouses on highways. The roads would be clogged with trucks unable to make their deliveries on time, the city would effectively come to a standstill. That's essentially what's happening to Bitcoin.
This has real-world implications. For the blockchain-related businesses located in jurisdictions such as Singapore — a global hub for blockchain innovation — this would be catastrophic. Imagine an aspiring new merchant wanting to be able to accept payments in Bitcoin. The exorbitant fees scare customers off, leading them to abandon their purchases. Very quickly, the cost of doing business with Bitcoin becomes prohibitive.
I sat down recently with Sarah, one of the local cafe proprietors here in Singapore who began accepting Bitcoin last year. We thought this would help attract innovative, tech-friendly customers, as she discussed in her recent testimony. If we’re forced to keep paying increasing fees, then one day soon we’ll have to refuse it completely. It’s just not worth it.”
That’s the real impact we’re talking about. It's not just about abstract numbers on a screen, it's about whether Bitcoin can remain a viable option for everyday transactions.
Can Bitcoin Core Fix The Problem?
Fortunately Bitcoin Core developer Luke Dashjr is already on the case. As for inscriptions, he feels that they are taking advantage of a vulnerability and is developing a remedy. This would mean scaling back Ordinals, or even banning Ordinals inscriptions entirely.
This is where things get interesting. But should this vulnerability be patched, it can spell the end of new ordinals—and with them the emergence of popular BRC-20 tokens. Many view this approach as a regrettable, though unavoidable evil to rescue the network. Critics on the other hand say that it’s censorship and a betrayal of Bitcoin’s fundamental ideals.
Let's be honest, is a niche use case like inscribing JPEGs on the blockchain really worth jeopardizing the entire network's functionality? Are we prepared to forego Bitcoin’s long-term utility as a global payment system because we’re in search of digital collectibles?
The choice is clear. Bitcoin needs to prioritize its primary function: a reliable and efficient payment system. We should not allow the protection of niche use cases to endanger the whole network.
This isn’t an attempt to stifle innovation — it’s an effort to protect the long-term health and viability of Bitcoin. It’s about making sure Bitcoin is a tool for all of us, and not just a casino for the privileged few. The clock is ticking. Whatever the fix may be, we need it, and we need it yesterday.
| Scenario | Outcome | Impact on Users |
|---|---|---|
| Vulnerability Patched | Ordinals inscriptions restricted/eliminated | Lower fees, faster transactions, potentially less innovation in digital collectibles |
| Vulnerability Unpatched | Network congestion continues | Higher fees, slower transactions, potential for Bitcoin to become unusable for small payments |
The choice is clear. Bitcoin needs to prioritize its primary function: a reliable and efficient payment system. We can't let niche use cases jeopardize the entire network.
This isn't about stifling innovation; it's about protecting the long-term health and viability of Bitcoin. It's about ensuring that Bitcoin remains a tool for everyone, not just a playground for a select few. The clock is ticking. We need a solution, and we need it now.
