Blockstream CEO Adam Back Proposes Innovative Solution for Bitcoin Inscriptions

Adam Back, the CEO of Blockstream and a reputable cryptographer, has acknowledged that inscriptions—directly added media on Bitcoin—are inevitable. He emphasized that trying to stop this trend would just make individuals select “worse ways” to achieve the same objective. In response, Back unveiled an innovative scheme to permit inscriptions within the Bitcoin network.

Back recently said that attempting to erase Ordinal inscriptions is futile and that such attempts are ineffectual. He made the argument that high inscription prices might encourage the adoption of layer 2 solutions and innovation. Back advocated for a more relaxed approach and asked the community to focus on constructive development.

Back stated, “Complaining will only make them do it more. Trying to stop them and they’ll do it in worse ways. The high fees drive adoption of layer2 and force innovation. So relax and build things.”

Recognizing the challenges posed by rising transaction fees due to media embedding protocols like Ordinals and stamps, Back proposed a solution—an addition of a dedicated data blob, a “segwit annex,” to each Bitcoin block. This space, financed by miners, aims to provide ample room for various Bitcoin-centric data, including inscriptions.

“Inscriptors want unavoidable scarcity derived from bitcoin mining and blockspace limits, and they want to pay less not more. So a segwit annex for another 4MW space, paid by miners, with a higher discount than taproot inscriptions,” explained Back.

Coincidentally, Back’s proposal bears resemblance to Ethereum’s EIP-4844, known as Proto-Danksharding. This Ethereum improvement proposal introduces data blobs with a limited lifespan and their own fee market. The comparison highlights a shared challenge faced by major blockchains—finding ways to integrate additional data while managing fees.

As Bitcoin continues to evolve, innovative proposals like Back’s underscore the need for adaptive solutions to address the dynamic landscape of blockchain development.