Bitcoin Ordinals and Inscriptions An Analysis of Bitcoin’s Evolving Network Dynamics
Abstract
Bitcoin Ordinals and inscriptions facilitate the on-chain storage of arbitrary data on the Bitcoin blockchain. In this study, we analyse the impact of inscriptions on the Bitcoin network. We find that inscriptions have significantly increased network activity, created additional demand for blockspace, and influenced Bitcoin’s fee market dynamics. Furthermore, we find that the rise of inscriptions coincided with an increased utilisation of Taproot, a notable increase in block size, and the longest sustained period of high blockspace utilisation in Bitcoin’s history. Our study shows that inscriptions have reshaped how Bitcoin’s blockchain is utilised and underscores the growing number of use cases beyond its original function as a peer-to-peer financial network.
Fields of Study & Subjects
Blockchain Technology Applications and Security
Digital Platforms and Economics
FinTech
Crowdfunding
Digital Finance
Publication details
- Journal / source
- The Journal of British Blockchain Association
- Publisher
- The British Blockchain Association
- Volume
- 9
- Issue
- 1
- Pages
- 1–12
- Publication date
- 2 January 2026
- Language
- EN