Magic Eden, the leading community-centric NFT marketplace, announced that it will temporarily pause Bitcoin BRC-20 trading to best protect users until full ord consensus across all BRC-20.
BRC-20 is an experimental token standard that utilizes ordinal inscriptions and allows users to store a script file on Bitcoin, associating tokens with specific satoshis. Ordinal inscriptions are a way for satoshis to be numbered, identified, and even inscribed with information, such as text or an image, transforming them into non-fungible tokens (NFTs).
Reason for the pause
According to Magic Eden, the pause of BRC-20 trading is due to the lack of ord consensus across all BRC-20. Ord consensus is the process of verifying and validating the ordinal inscriptions on the Bitcoin blockchain. Without ord consensus, the BRC-20 tokens may not be accurately reflected or transferred on the network. Magic Eden stated that it will resume BRC-20 trading once the ord consensus is restored and the network is stable.
A significant drop in BRC-20 activity
Since the finishing of sats mint, BRC-20 activity has dropped significantly, and the number of daily transactions accounts for less than 3% of the number of transactions on the Bitcoin blockchain. Sats mint is the process of creating new BRC-20 tokens by attaching a JSON to satoshis through Bitcoin ordinals. The JSON code bit defines every characteristic of the BRC-20 token including the minting, and distribution. The sats mint was completed in April 2023, after which no more BRC-20 tokens can be created.
BTC-based non-fungible tokens
In the meantime, users can still explore BTC Ordinals collections and other NFTs on Magic Eden. BTC Ordinals are a one-of-a-kind category of Bitcoin-based NFTs that introduces a new dimension to digital collectibles and asset ownership. Some of the popular BTC Ordinals collections include Ordinal Maxi Biz, Bitcoin Frogs, and Bitcoin Punks. Magic Eden is also home to other NFT collections on different blockchains, such as Solana, Polygon, and Ethereum.