In a digital era where blockchain technology continues to evolve at a breakneck pace, who would have thought that the ancient concept of inscriptions would find a new lease on life, propelling blockchain networks to uncharted territories? Indeed, an ongoing craze for minting inscriptions on non-Bitcoin-based chains has catalyzed a significant surge in transactions across several blockchain networks, including the likes of Arbitrum and BNB Chain, which have now etched their names in the annals of history with all-time highs in throughput.
A December to remember, as hildobby, a data researcher at crypto venture fund Dragonfly, points out that a handful of networks—Goerli, zkSync, Arbitrum, Gnosis, and the BNB Chain—witnessed daily peak transactions per second (TPS) within the month. Notably, inscriptions were responsible for between 83% and 97% of the transactions on these chains. But the phenomenon didn’t stop there; November saw Fantom, Celo, Avalanche, and Polygon also hitting new daily TPS records.
The momentum was palpable as Optimism recorded an hourly TPS record of 87,960 on December 19th, with Avalanche hot on its heels, peaking at an hourly TPS record of 289,285 on December 18th. These figures are not just numbers; they represent a culmination of two years of increasing transaction counts on leading blockchains, all thanks to the recent inscription fervor.
One cannot ignore the economic impact of this trend, as the cost associated with gas for minting new inscriptions has also skyrocketed to unprecedented levels. Drawing parallels to Bitcoin Ordinals, users have discovered that they too can embed a range of assets—from memecoins to social media profile pictures—using transaction call data on Ethereum Virtual Machine (EVM)-based chains. This innovation has inevitably driven a heightened demand for block space.
This resurgence of interest in inscriptions has far-reaching implications for the blockchain industry. As users continue to explore the boundaries of what can be minted, the underlying technology must scale to accommodate this burgeoning demand. It’s a testament to the adaptability and robustness of EVM-based chains that they have handled this influx of activity with aplomb.
Yet, questions linger amidst this growth. How will blockchain networks continue to innovate to sustain and improve upon these transaction speeds? How will the economics of gas fees evolve in response to these changing patterns of usage? As we delve into these questions, we encourage our readers to join the conversation and share their thoughts.
The inscription phenomenon serves as a reminder that innovation in the blockchain space is alive and well. It underscores the sector’s capacity to adapt and thrive, even as it pushes the limits of current infrastructure. As the community looks onward, we urge enthusiasts and seasoned investors alike to keep a close eye on these developments.
In conclusion, the record-breaking transaction speeds on multiple EVM chains signify a pivotal moment in cryptocurrency history. The rise of inscriptions has not only tested the mettle of existing blockchain networks but also set the stage for future advancements. It’s an exhilarating time for the industry, and we remain committed to bringing you the latest updates as they unfold. Stay informed, stay curious, and let us watch together as the next chapter of blockchain innovation unfolds.
FAQs
What are inscriptions and why are they causing such a surge in blockchain transactions? Inscriptions are akin to digital engravings on the blockchain, where users can mint various digital assets using transaction call data. Their popularity has led to a significant increase in transactions on EVM-based chains due to the novel use cases they provide.
Which blockchain networks have seen record transaction speeds due to inscriptions? Arbitrum, BNB Chain, Goerli, zkSync, Gnosis, Fantom, Celo, Avalanche, and Polygon have all seen record transaction speeds, with inscriptions accounting for a large percentage of the activity.
How high did the transaction per second (TPS) rates reach on some of these networks? Optimism hit an hourly TPS record of 87,960, and Avalanche reached an hourly TPS record of 289,285, signifying massive throughput and scaling capabilities.
Has the cost of transactions increased due to the demand for inscriptions? Yes, the gas fees, or the amount spent on transactions, for minting new inscriptions have surged to all-time highs, reflecting the increased demand for block space.
What does this increase in blockchain transactions imply for the future of the industry? The growing interest and use of inscriptions indicate a trend towards more diverse use cases for blockchain technology, suggesting that networks will need to continue to scale and innovate to meet evolving demands.
Our Recommendations
Embrace the Innovation: The rise of inscriptions is a clear signal that the blockchain community values innovation. We recommend that developers and users alike continue to explore and support new use cases that push the boundaries of the technology.
Stay Informed on Network Scalability: As transaction volumes continue to grow, it’s crucial to stay updated on how EVM-based chains and other blockchain networks are scaling to meet demand. This knowledge is key for anyone looking to participate in the ecosystem, whether as a user or an investor.
Evaluate Gas Fees Strategically: With gas fees fluctuating, we advise users to assess the cost of transactions carefully and consider the timing of their activity on the network to optimize for lower fees when
What’s your take on this? Let’s know about your thoughts in the comments below!
