In the latest v27 upgrade of the Bitcoin Core network, a bug fix has been implemented to address an issue affecting the creation of new Bitcoin Ordinals and BRC-20 tokens. These tokens have been causing network congestion due to their exploitation of a vulnerability, as highlighted by a prominent Bitcoin Core developer.
Bitcoin Ordinals, introduced by Casey Rodarmor in January 2023, are satoshis (sats) embedded with specific information, turning each into a sort of NFT. Luke Dashjr, founder of the OCEAN mining pool, explained that the inscriptions used by Ordinals and BRC-20 tokens exploit a vulnerability in the Bitcoin Core network, essentially spamming the blockchain.
This exploitation bypassed size limits on transaction data by disguising the data as program code, a loophole now fixed in the latest Bitcoin Knots update, a derivative of Bitcoin Core.
Dashjr confirmed that once the vulnerability is fixed, new Ordinals and BRC-20 tokens won’t be operational. However, existing inscriptions will persist.
Dashjr has been a vocal critic of Ordinal inscriptions, citing significant and irreversible damage to Bitcoin and its users. He previously proposed banning BRC-20s by extending spam filtration to Bitcoin’s Taproot transactions.
The recent surge in Ordinals’ activity has led Bitcoin transaction fees to surpass Ethereum’s, with current average BTC fees at $19.48. During the peak Ordinals activity in May, fees spiked to over $31, intensifying congestion on the network.