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Original author: 0x Elaine (Twitter: @elineyang73 )
1. Introduction to the Bitcoin NFT Protocol Ordinals
As an encrypted token that can represent a unique digital asset or physical asset, NFT is unique and irreplaceable on the blockchain. NFT has been developed on smart contract platforms such as Ethereum for many years, and many famous projects and applications have been born. However, on Bitcoin, the earliest and most secure blockchain, due to its lack of native smart contract functions and high transaction fees, NFT has not been widely developed and applied.
As an encrypted token that can represent a unique digital asset or physical asset, NFT is unique and irreplaceable on the blockchain. NFT has been developed on smart contract platforms such as Ethereum for many years, and many famous projects and applications have been born. However, on Bitcoin, the earliest and most secure blockchain, due to its lack of native smart contract functions and high transaction fees, NFT has not been widely developed and applied.
In order to solve this problem, a protocol called Ordinals was officially launched on December 14, 2022. It utilizes the technical characteristics of Segregated Witness (SegWit) and Taproot 3 on the Bitcoin network (reducing the size of transaction data, thereby speeding up transactions, improving Scalability and lower fees.), enabling direct minting, transfer and destruction of NFT on the Bitcoin chain. The Ordinals protocol numbers the smallest unit (Satoshi) in each bitcoin and links it with a metadata to form a unique and traceable NFT. The Ordinals protocol does not require any centralized or trusted parties to participate, nor does it need to rely on any Layer 2 or side chain solutions. It fully follows the rules and security of the Bitcoin network itself.
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How do serial numbers and inscriptions work?
How do serial numbers and inscriptions work?
ORD, which is an open-source software that can run on top of any Bitcoin full node, can track individual Satoshis according to what founder Casey Rodarmor calls "the theory of ordinal numbers." Satoshis ("sats") are the smallest unit of the Bitcoin network, 1 bitcoin = 100,000,000 sats. Ordinal number theory assigns a unique identifier to every person on Bitcoin. In addition, these individual sats can be "inscribed" with arbitrary content, such as text, images, videos, to create "inscriptions", that is, Bitcoin's native digital artifacts can also be called NFTs.
Data on the number of inscriptions on some current ordinals protocols
https://dune.com/dgtl_assets/bitcoin-ordinals-analysis
2. The development status of BTC NFT
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1. From blue-chip projects on ETH and Solana to NFT projects issued on the Bitcoin network
Such projects already have great influence, so the launch price is also high. Yuga Labs' "TwelveFold" sold 288 NFTs in an auction, with the highest winning bid price being 7.1159 BTC and the lowest winning bid price being 2.2501 BTC, with a total auction revenue of about 16.5 million US dollars. Currently, on ordinals.market, the floor price of "TwelveFold" exceeds 30 ETH, and the cumulative turnover is 108.49 ETH. DeGods sold 500 Bitcoin versions of DeGods within 2 minutes at a price of 0.333 BTC.
Such projects already have great influence, so the launch price is also high. Yuga Labs' "TwelveFold" sold 288 NFTs in an auction, with the highest winning bid price being 7.1159 BTC and the lowest winning bid price being 2.2501 BTC, with a total auction revenue of about 16.5 million US dollars. Currently, on ordinals.market, the floor price of "TwelveFold" exceeds 30 ETH, and the cumulative turnover is 108.49 ETH. DeGods sold 500 Bitcoin versions of DeGods within 2 minutes at a price of 0.333 BTC.
2、「Sub 10 K」
The current highest-traded “Sub 10 K” Bitcoin NFT is Ordinals Punk #87 (Inscription #613 ), with a transaction price of 2.77 BTC. On March 17, Bitcoin Logo image Inscription #3384 was sold at a price of 0.31 BTC. The most influential "Sub 10 K" series include Ordinals Punks, Bitcoin Shrooms and Planetary Ordinal, and the familiar Bitcoin Punks is "Sub 100 K".
Currently, the 2nd and 8th Bitcoin NFTs issued by Mint—Inscription #2 and Inscription #8 are both listed on the Ordinals Wallet market.
The current highest-traded “Sub 10 K” Bitcoin NFT is Ordinals Punk #87 (Inscription #613 ), with a transaction price of 2.77 BTC. On March 17, Bitcoin Logo image Inscription #3384 was sold at a price of 0.31 BTC. The most influential "Sub 10 K" series include Ordinals Punks, Bitcoin Shrooms and Planetary Ordinal, and the familiar Bitcoin Punks is "Sub 100 K".
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3. BTC native encryption color
Taproot Wizard officially shared the mental journey of founder Udi Wertheimer on social media: "On the day of Silicon Valley Bank's collapse and USDC panic day, I decided to launch the Taproot Wizard NFT project today and let people record videos of themselves bathing in wizard costumes" . It is reported that Taproot Wizard is an NFT project created on the Bitcoin chain, initiated by encrypted asset developer Udi Wertheimer, to commemorate the Taproot upgrade of Bitcoin and a classic image of the Bitcoin community-Bitcoin Wizard.
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4. Shovel empowerment type
Refers to the NFT series that continue to receive valuable airdrops after holding. The currently well-known "shovel" is BTC Machine, and they have airdropped two projects, BTC Operators and BTC Virus.
Currently, the floor price of BTC Machine in the Ordinals Wallet market is 0.088 BTC, while the floor prices of BTC Operators and BTC Virus are 0.018 BTC and 0.0012 BTC respectively. What deserves our attention is that using various Bitcoin NFT-related tools is extremely It is possible to be airdropped "shovel".
List of currently noteworthy NFT series for BTC NFT
TwelveFold: There are only 300 NFTs released by Yuga, and it is also the only NFT project endorsed by a large institution. It takes the route of artwork, and the ceiling of artwork is much higher than that of PFP avatar. If it succeeds in the future, it will be a top luxury product!
DeGods: The blue-chip project on Solana comes from the NFT project issued on the Bitcoin network.
Sub 10 K: Sub 10 refers to the top 10,000 inscriptions in the inscription number, and is currently the favorite of old OG players.
Bitcoin Punks: Bit Punks is also a perfect replica of CryptoPunks on the ETH chain. The inscription number is also ranked in the top 40K. It is very early and basically owned by old OG players. There is also an OKX endorsement behind it. It is currently the same as Bit Monkey , which belongs to the NFT with the largest consensus.
Taproot Wizard: Taproot Wizard is an NFT project created on the Bitcoin chain, initiated by encrypted asset developer Udi Wertheimer, to commemorate the Taproot upgrade of Bitcoin and a classic image of the Bitcoin community-Bitcoin Wizard.Pixel Pepes: Ordinals Wallet airdropped 1563 sad frog-themed pixel PFPs to its early users at the end of February - "Pixel Pepes" (Ordinals Wallet Airdrop)
BTC Machine: shovel type, they have airdropped two projects, BTC Operators and BTC Virus.
Bitcoin Pizzas: The 5.22 Pizza Festival will have some heat, the quantity is relatively small, and it may be valuable if the heat rises.
DogePunk: Bitpunk dog, strong buying, 10k series.
bitcoin frogs: Bitcoin frogs, 10 K series, pepe has become popular recently, and various baby series will be popular again, and it has the attribute of golden cicada baby to attract money.
Bitcoin Moonbirds: Moonbird series of the btc chain, 10 K series, Moonbird is CC 0, the first blue-chip big IP from ETH without copyright disputes, so there will be no copyright issues.
Figure source network
3. BTC NFT trading market
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OKX founder Xu Mingxing said that the OKX Web3 wallet will soon support market transactions for Ordinals and BRC-20 tokens.
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Magic Eden launches Launchpad for Bitcoin Ordinals NFT creators.
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Gamma.io：
3. Bitcoin native trading market
Gamma.io offers a casting method called Gamma bot. Users can use Gamma bot to mint their own unique digital creations, collect them or sell them. Users can mint NFTs through simple commands without coding or technical knowledge: just add Gamma bot on Discord and enter commands such as create to create an NFT. Gamma.io also launched a .btc domain name marketplace, allowing users to have their own decentralized identities and websites. Register, buy, sell and transfer .btc domain names on Gamma.io, and also bind them to your own NFT.
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Unisats ：
4. Comprehensive platforms such as inscription engraving and brc 20 trading market
IDclub:
At present, brc 20 token issuance and token platform, inscription engraving platform, domain name registration can also use this platform, support brc 20 token point-to-point transactions, daily active and transaction users are the largest, but currently does not support btc NFT trading market Trading, of course, because of the large number of users, it also faces frequent freezes and crashes. I look forward to more and more iterations of the product. At present, the Chinese team here has the fastest product speed.
List of tools for ordinals ecological mapping and BRC 20 tokens:
(Source @elaineyang 73 )
The picture comes from the network
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4. The value of BTC NFT
A brc 20 token contains at least 546 Satoshi, and it is impossible to return to zero. From this point of view, it is at least more valuable than air tokens on ERC 20. Therefore, everyone should have an inclusive attitude towards brc 20 tokens. Don't completely deny it, don't accept it completely, just watch as you go.
If you use one word to describe the difference between Bitcoin NFT and Ethereum NFT, what would you choose?
Some people say that Bitcoin NFT is "eternal". As long as you believe that the Bitcoin network is eternal, all data "burned" on Bitcoin will exist forever. Do not play off-chain, only play on-chain.
Someone said, said - this is a serial numbered note, if you put something on it, will it be different? Hong Kong dollar does not know, but Bitcoin will! 1 Satoshi = Whatever you inscribed, this is the biggest underlying value logic difference between Bitcoin NFT and Ethereum NFT.
Some people say that Bitcoin NFT is "historically valuable." Because the "burning" of Bitcoin NFTs will lead to differences in the serial number of Bitcoin NFTs, the sooner "burning" Bitcoins may be more valuable in the future, just like dinosaur fossils in the Jurassic period, and fossils in the Shang Dynasty. Bronze ware to modern steel bars.
Some people say that Bitcoin NFT is "historically valuable." Because the "burning" of Bitcoin NFTs will lead to differences in the serial number of Bitcoin NFTs, the sooner "burning" Bitcoins may be more valuable in the future, just like dinosaur fossils in the Jurassic period, and fossils in the Shang Dynasty. Bronze ware to modern steel bars.Some people say that Bitcoin NFT is "free". From Slik Road, to some online shopping malls, to Amazon and eBay, Bitcoin has been developing along the path of "more widely accepted currency". The emergence of the Ordinals protocol has made Bitcoin more free. Who knows what extra value a "burned" Satoshi would have? The free flow of the market will give these "burned" bitcoins a new value. One day, we will get the answer to this question. These answers are all showing us the unique charm of Bitcoin NFT compared to Ethereum NFT. (Cookie article quoted aboveunderstanding in
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5. Challenges that Bitcoin NFT may face
Due to the cost factor of Bitcoin NFT (fully chained), it may not be possible to achieve large-scale application and popularization at present.
lack of infrastructure
lack of infrastructure
At present, the Bitcoin NFT ecosystem is not perfect, lacks relevant infrastructure and application scenarios, and mostly relies on over-the-counter transactions.
High operating threshold
Continuing from the above, since most Bitcoin NFT transactions need to be carried out off-site, its operation is more complicated. For ordinary users, it may be more difficult to understand and use.
Pushing Up Bitcoin Network Transaction Fees
Rising transaction fees on the Bitcoin network, a side effect of adding NFTs to the Bitcoin blockchain, has caused the worst block congestion in Bitcoin transactions since FTX's bankruptcy.
Bitcoin supremacists (Maximalists) believe that Bitcoin NFT violates Satoshi Nakamoto's original intention of creating "peer-to-peer electronic currency", and writing NFT-related data into Bitcoin is undoubtedly a waste of block capacity.
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6. Market Outlook
1. At present, the blue chip project of BTC NFT has not yet determined the pattern, but Bitfrog seems to have the potential of the 10 k series blue chips. For the 10 k series, the fp of 1 btc is a big threshold, but it can be rushed. The exchange comes in platform BTC NFT
2. The future btc NFT must be the original btc ecological series, not the copy paste series of the Ethereum chain. At the same time, it is still continuing the PFP gameplay of NFT. Only the btc NFT that can make the avatar series of PFP can become a blue chip potential
3. If the floor price of BTC NFT is 0.001, the pulling effect is the best, because such odds basically have the potential to increase by 20 times. The current floor price of 0.01 B is a threshold, 0.0 2B is a threshold, and 0.1 B is a threshold. Can advance to blue chip series.
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