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The inscription circus (ordinals, stamps, runes, etc.) is on the wane. But the damage is already done. We look back at this nasty act that undermines Bitcoin's decentralization.
Latest inscription information
An imprint is a piece of data (for example, a .jpeg file) that is stored within a Bitcoin transaction.
For example, there are so-called ordinals, inscriptions related to “unique satoshis”. The term ordinals comes from the expression “ordinal number theory” and refers to the methodology of mapping these satoshis by virtual numbering.
This number is used to trace a satoshi from one transaction to another and find out who its owner is. This tracking is done through software that has nothing to do with the Bitcoin protocol. It all relies on an ordinal explorer.
In other words, the data (jpeg/stamp) is not transferred from one transaction to another as is sometimes imagined – the stamp remains linked to the same original transaction (txid) in the same block.
How does it technically work?
First, two points need to be made.
First, to make a Bitcoin transaction, you need to create a “utxo” – a piece of code (script) that mathematically ties an amount of Bitcoin to a Bitcoin address (public key).
Secondly, the transaction mechanism relies on a computer-executable language called “script”, which is a very simple language with a very limited number of instructions.
These instructions are called opcodes. Think of them as little digital gears. The most basic is OP_CHECKSIG, which verifies that the signature provided in the transaction matches the Bitcoin address in question.
The imprint (txt file, jpeg, etc.) is inserted into utxos of type P2TR and P2WPKH. This is done using a trick involving three opcodes: OP_FALSE, OP_IF, and OP_PUSH.
This opcode combination means that nothing is actually executed at the time of the transaction, but the data contained in OP_IF is stored permanently in the blockchain.
that's all.
What is the problem with Bitcoin?
If you think about it, imprinting turns transactions into casino tokens, and to make this attack self-sufficient, all they need to do is lure crypto addicts into a pump-and-dump.
Registration weakened the economic incentive for Bitcoin because high transaction fees encourage pools and miners to ignore it, so the transaction fee preference argument is no longer compelling.
One problem is that it would bloat the blockchain with tens of millions of stamps. Some argue that this is not a problem since the ordinals can be reduced. The reason is that they are in the “witness” section of the transaction and lightweight nodes do not need to validate the block.
Yes, that's true, but you still need full nodes to keep them in memory, but a significant reduction in the number of full nodes compared to pruned nodes could lead to unpleasant surprises.
Here's an explanation for English speakers:
Another, more pressing issue, relates to the protocol on stamp imprinting.
Bitcoin Stamp
Ordinals can be pruned by a process called “pruning”, but this is not possible with the stamp protocol.
This time, the data poses as public keys in multiple multisig utxos.
[A “multisig” utxo means that multiple public keys are used to construct it.]
These highly harmful inscriptions have already caused a staggering increase in the total number of Uchos: they have more than doubled in just one year and now number more than 230 million.
An unexpected consequence is that the time required to set up a node has increased significantly. Recent tests by the Ocean pool founders show grim results:
“In 2022, we were able to set up a node in less than 48 hours using a simple Raspberry Pi 4. Now we're using a Raspberry Pi 5, which has a processor twice as powerful. Despite this, the process took more than 100 hours instead of 48.”
“The situation is much worse than it was before. By orders of magnitude. This is not FUD. The more you close your eyes, the more you will be silenced. [to inscriptions]”This will accelerate the centralization of the Bitcoin network.”
At this rate, in 10 years it will take 24 days to install a node…
The “right” way
Many believe that there should be no arbitrary data on the blockchain at all.
Generally, imprinting is tolerated as long as it is done sensibly, i.e. it does not negatively impact Bitcoin's decentralization. These imprints use an opcode created specifically for this purpose: OP_RETURN.
OP_RETURN was created in 2014 as an alternative to more harmful techniques for injecting arbitrary data. Incidentally, stamping is just a copy of the adversary protocol that led to the creation of OP_RETURN.
OP_RETURN provides a limited space of 83 bytes per transaction, which is enough to fill in the SHA-256 hash (32 bytes) and an identifying tag. The utxos created are special in that they cannot be used, so lightweight nodes can delete them entirely.
This means that some troublemakers are intentionally doing things in the worst way possible, and this speaks volumes about their intentions. Doubling the time required to install a node in less than a year should spark outcry.
Due to Bitcoin Core's inaction, this humble author highly recommends using the BitcoinKnots client. This Bitcoin client implementation stands out with a series of bug fixes with stricter filters.
If you're a miner, send your hash harvest to @ocean_mining. Founded by Luke Dash and Jack Dorsey, this pool mines mostly unstamped blocks.
Don't miss our latest articles on Bitcoin Core's inaction: Bitcoin Core Comes Out of Silence.
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Bitcoin, geopolitics, economics and energy journalist.
Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.
