Magic Eden Temporarily Halts Bitcoin BRC-20 Trading

The reason behind this move is to protect users until there is a full consensus across all BRC-20 assets.

While this may affect some traders, Magic Eden has made it clear that all other forms of trading will continue unaffected on their platform.

The announcement, made on October 22, 2023, was shared on the official Magic Eden on Bitcoin X account.

BRC-20 is an experimental token standard that was introduced by an anonymous developer named Domo on March 9, 2023.

These tokens are fungible and reside on the Bitcoin blockchain, they are unique because they do not utilize smart contracts but rather rely on script file storage on Bitcoin (BTC).

The decision to list BRC-20 assets on Magic Eden was initially met with significant demand and enthusiasm.

These tokens had a substantial impact on the trading volume of Bitcoin when they first emerged, creating a sense of a new asset class in the crypto world.

However, since the completion of the sats mint and the introduction of RUNE, a potential alternative to BRC-20, the activity of BRC-20 tokens has dwindled significantly.

According to crypto expert Colin Wu,

“Since the finishing of sats mint, BRC-20 activity has dropped significantly, and the number of daily transactions accounts for less than 3% of the number of transactions on the Bitcoin blockchain.”

Magic Eden’s decision to explore and list BRC-20 tokens earlier in the year was in line with the broader vision of Bitcoin Ordinals.

This vision aimed to make Bitcoin more versatile and usable beyond its conventional role as a payment method.

Bitcoin Ordinals aimed to connect BTC with new protocols, expanding its potential applications.

In a move to further expand the influence of BRC-20 Ordinals, the creator launched RUNE, a Bitcoin UTXO protocol designed to enhance the user experience.

Despite the waning popularity of BRC-20, many still see it as a foundational step in the evolution of Bitcoin’s usability.

The decision to suspend Bitcoin BRC-20 trading was precipitated by a technical issue uncovered on October 21, 2023, when gmart7t2 opened an issue named “Ord 0.9.x inscription numbers different than 0.7.x and 0.8.x #2569.”

He explained that

“inscriptions 35321413 and 35329860 are indexed by ord 0.9.0 but not by ord 0.7.0 or 0.8.0. As a result, 0.9.0 is assigning numbers that are off by 2 from those assigned by older versions.”

Another contributor named devords highlighted,

“This is causing two released versions of ord differ in inscription numbers.”

Furthermore, leonidasord contributed,

“I just did a quick analysis of some different tools. 0.9.0 has been out for 40 days and it seems that adoption has been pretty good but not perfect. Tough call. Either way making it sooner rather than later is preferable for the ecosystem so that we can all get aligned again.”

Casey Rodarmor, the creator of Ordinals, addressed the issue by stating,

“Attempt to fix #2569. In the old, pre 0.9.0 parser, if an inscription was followed by an inscription that caused an error, earlier inscriptions would not be processed.

The things that would trigger this were unrecognized even fields, duplicate fields, and incomplete fields. This adds a new curse, GuiltByAssociation, which causes an inscription which is valid, but is followed by an inscription which triggers one of the errors to be cursed.

I’d be mad but honestly this is kind of hilarious at this point.”

User lifofifo explains this with a token

Magic Eden suspended BRC-20 trading due to safety concerns caused by inconsistencies in different ordinals code version causing inscription numbers to be affected.

They want all marketplaces to be on the same version, aiming for a more secure and stable trading environment.

Trading will resume once consensus is reached.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.

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