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The Rise of Bitcoin NFTs and Ordinals

source: midjourney

The world of cryptocurrency is about to get more exciting with the introduction of Bitcoin NFTs and ordinals. But what are they and how do they work?

What is an NFT? (Skip to “Good Stuff” if you already know)

An NFT, or Non-Fungible Token, is a digital asset that represents ownership of a unique item or piece of content. This could be anything from a piece of artwork to a collectible. NFTs use blockchain technology to verify ownership and ensure that the item is unique. Just like how some people like to collect stickers or trading cards, people are now collecting NFTs. But the cool thing about NFTs is that they are one-of-a-kind, which means that no one else can have the exact same one as you. People are buying and selling NFTs for different prices because they’re rare, unique, and digital items.

Did you know that the first NFT was on Bitcoin? In terms of art, “Quantum” by New York artist Kevin McCoy is considered to be the first NFT! Learn more HERE

"First Ever NFT" Sells for $1.4 Million

Now the Good Stuff

Ordinals were made possible by the Taproot upgrade. Think of Taproot like the ERC721 standard for Ethereum.

Basically: Ordinals are the jpeg, Taproot is the token, and Bitcoin is the chain.

Ordinals and Inscriptions

An ordinal is a unique identifier assigned to an NFT. It allows the NFT to be easily referenced and tracked on the blockchain. Ordinals are crucial to ensure the uniqueness and authenticity of an NFT. An inscription refers to the data stored on the NFT, such as the artwork or the collectible item’s description. This information provides context and information about the NFT, including metadata such as the date of creation and the artist’s signature.

Bitcoin Ordinals

Bitcoin Ordinals are unique digital assets that can be inscribed or “minted” by anyone. There are two ways to do this: the hard way, which involves doing it yourself, or the easy way, which involves using a website. However, not all Bitcoin wallets have the capability to send or receive Bitcoin Ordinals, so it’s recommended to use a dedicated wallet that only holds one Bitcoin Ordinal. Additionally, be aware that spending the satoshis (the unit of Bitcoin) on which the Bitcoin Ordinal is inscribed on could result in the loss of the NFT. The fees for Bitcoin Ordinals are paid using Bitcoin (BTC).

Purchasing and Selling Bitcoin NFTs

There is now an option to purchase or sell Bitcoin NFTs through EmblemVault using Ethereum (ETH). It’s important to note that popular exchanges like Coinbase and Binance or a Ledger wallet are not recommended for this purpose. A good alternative is the Sparrow wallet, which allows for the creation of a Taproot wallet.

Note that a Bitcoin Ordinal cannot be sold, transferred, or traded unless the individual has a Bitcoin node running on their computer. After downloading the node, it must be synced with the blockchain, which can take anywhere from one to three days. The Bitcoin Core node can be downloaded from the official website at bitcoin.org.

To set up a node, follow the tutorial at bitcoin.org or sparrowwallet.com. Once you download and sync Bitcoin Core, you’ll need to set up your wallet.

Community Sentiment

The reaction of the NFT community to the recent emergence of Bitcoin in the NFT space is quite varied. Some die-hard Ethereum fans are skeptical about this development, while others see it as just another trend in the world of NFTs. Meanwhile, Bitcoin enthusiasts known as “maxis” are dismissive of the value of bringing NFTs to the Bitcoin chain.

At this point, it is difficult to predict whether this is a short-lived trend or if Bitcoin will become a permanent fixture in the NFT world. To ensure its survival, a few key factors need to be addressed. Firstly, the user experience needs to be improved. Currently, there is a lack of a user-friendly marketplace like OpenSea, making it difficult for users to create, buy, and sell NFTs on the Bitcoin chain.

Secondly, the issue of transactional safety must be addressed. Creating nodes, new wallets, and educating users on the importance of due diligence and avoiding sending Bitcoin blindly are all crucial components of this. To that end, an educational effort is needed to help the market better understand Bitcoin NFTs. It will take some time for the market to fully adapt to this new development, but with the right approach, Bitcoin NFTs could become a permanent fixture in the NFT world.

If it is made frictionless, that could all change.

Minting on BTC

To ‘mint’ ordinals, commonly called inscriptions, it is required to run a bitcoin node. This can be done using Bitcoin Core. Bitcoin Core requires a one-time download of about 500GB of data plus an additional 5–10GB per month. By default, you will need to store all of that data, but if you enable pruning, it is possible to store as little as 6GB in total without sacrificing any security. More information about setting up a node with Bitcoin Core can be found in this full node guide.

There also are 3rd party platforms, such as https://gamma.io/, that allows handling ordinal inscriptions.

Where can I get started?

If you’ve set up a node, wallet and are familiar with this new process, you’re ready to buy your first BTC NFT. Remember to always “Do Your Own Research” (DYOR) when making financial decisions. Right now, any ordinal with a low Inscription ID is VERY sought after, here are a few to get you started:

→ @timechainord : 21 supply

→ @Ordinal_Loops : 69 supply

→ @OrdinalPunks : 100 supply

→ @ordrocks : 100 supply

On the Edge of Oblivion is also a great example of bringing “traditional” ETH NFT’s to Ordinals. View the collection HERE

Quick Recap and Key Takeaways:

  • Ordinals are unique digital assets that can be inscribed with data such as artwork, a collectible item’s description, and metadata such as the date of creation and the artist’s signature.
  • Bitcoin Ordinals can be inscribed using two methods, either through a website or by doing it yourself, but the process requires a Bitcoin node running (or using 3rd party) on a computer and a synchronized wallet.
  • The synchronization process can take up to three days and requires downloading the Bitcoin Core node from the official website. To purchase a Bitcoin Ordinal, it must be obtained through an OTC transaction and it is recommended to follow basic guidelines for a safe transaction such as using a middle man and keeping private keys secure.
  • The NFT community is still pondering on whether or not BTC NFTs will survive and if they’re into it.
  • Right now, low-inscription ID ordinals are in high demand. Always DYOR and stay safe

Both Ethereum and Bitcoin blockchains can accommodate NFTs, but they differ in their strengths and weaknesses. Ethereum provides a more flexible solution for NFT projects, while Bitcoin is more secure and has a proven track record, making it a reliable choice for valuable NFTs. The appropriate choice of blockchain will depend on the specific needs and requirements of an NFT project.

We hope this article has helped shed light on this new chapter in the world of NFTs. 💫

Looking to launch your project on Ethereum or Bitcoin?

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Non-Fungibly yours,

By James