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Blockchain Congestion on the Rise Due to 'Gold Rush' for Inscriptions

19/12/2023 18:56

According to Coinetlegraph: At least half a dozen blockchain networks have reported outages or slowdown due to the rapid increase in inscriptions, with some speculating that they represent a new method for traders to access low-cap coins. This trend has been likened to a "gold rush," and it has placed considerable strain on several networks. Screenshot from Celestia block explorer. Source: X/Dogetoshi Over the past week, Blockchain networks such as Arbitrum, Avalanche, Cronos, zkSync, The Open Network, and modular data availability network Celestia have all reported full or partial outages due to the high volume of inscriptions. These disruptions have been allegedly caused by aspirations to inscribe everything from profile pictures to memecoins on blockchains. Inscriptions on Ethereum and other Ethereum Virtual Machine (EVM)-compatible chains involve encoding data on transaction call data. Crypto developer Shardul Mahadik has likened this mechanism to writing a note or remark on a payment app where you make a zero transaction to yourself. Most recent inscriptions have been BRC-20-type tokens, themed after various collections such as Bitcoin Frogs and various new token tickers including BMBI, BEEG, GROK, according to ordinal tracker Ordi.io. Bitcoin developer Eric Wall postulated earlier this month that EVM inscriptions might represent a means for retail investors to access low-cap crypto assets, as initial coin offerings have been regulated and restricted. However, some analysts such as Michael Rinko, from crypto research firm Delphi Digital, see it as a fad with no rational basis.While it's still unclear whether the current rush for inscriptions is a passing trend or a lasting phenomenon, it's evident that the surge in their use has been putting a significant strain on several EVM-compatible chains.

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