Coinfeeds Daily → Ethereum 'Blobs' Inscriptions Rival Bitcoin Ordinals

Ethereum 'Blobs' Inscriptions Rival Bitcoin Ordinals

Published: Mar 28, 2024 | Last Updated: Mar 28, 2024
Image:

Ethereum's new 'blobs' feature enables larger data inscriptions, mirroring Bitcoin's Ordinals, and sees record usage, impacting transaction fees.

In the rapidly evolving world of cryptocurrency, Ethereum has introduced a new feature that is drawing comparisons to Bitcoin's Ordinals. This feature, known as "blobs," allows users to create inscriptions directly on the Ethereum blockchain. The adoption of this technology has seen a significant uptick, with a record number of inscriptions being made in recent times.

Understanding Ethereum Blobs

Ethereum blobs are a novel addition to the blockchain, enabling users to embed larger amounts of data in transactions. This became possible thanks to the Dencun update, implemented on March 13, 2024. The update was a game-changer, as it allowed for the inclusion of more data without negatively impacting the block processing times. This advancement is particularly significant because it mirrors the functionality of Bitcoin's Ordinals, which allows for the inscription of data on individual satoshis, the smallest unit of Bitcoin.

Record Usage and Impact on Fees

The popularity of blob inscriptions has surged, with March 27, 2024, marking a historic day. On this day, there were 2,437 blob inscriptions, accounting for 22.8% of all blobs created, indicating the highest usage among Ethereum's Layer 2 solutions. This spike in activity had a noticeable effect on transaction fees on the Base layer of Ethereum, with fees hitting a peak of $300 before settling back to around $30. This fluctuation underscores the growing interest and the impact of increased demand on network resources.

Practical Implications and Takeaways

The introduction and rapid adoption of Ethereum blobs for inscriptions highlight a few key points for users and enthusiasts of the blockchain technology. First, it demonstrates Ethereum's ongoing evolution and its ability to incorporate features that enhance its utility and appeal. The ability to embed more significant amounts of data directly on the blockchain opens up new possibilities for applications and uses that were previously constrained by data limitations.

Second, the spike in usage and the associated increase in transaction fees reveal the market's enthusiasm for this new feature, but also serve as a reminder of the scalability challenges that blockchains face as they grow. While the Dencun update has mitigated some of these challenges by allowing for more efficient data handling, the surge in demand for blob inscriptions shows that balancing innovation with scalability remains a critical issue.

Enjoyed reading this article? Subscribe for daily market and news updates.
Let me read it first >