Bitcoin has emerged as the world’s second most popular blockchain for NFTs as Ordinals, the latest incarnation of NFTs on Bitcoin, has been launched. Though Ethereum is still ahead in NFT transaction volume, Bitcoin has recently been processing almost half as many NFT transactions as Ethereum. Over the last 30 days, Ethereum has processed $390 million worth of on-chain NFT transactions, and Bitcoin is approaching half that figure, as Bitcoin NFT transactions total $173 million. This is more than triple the $49 million on Solana. The explosive popularity of Ordinals is reimagining the world’s oldest blockchain as a place for storing art, movies, collectibles, tickets, and even video games.
Satoshi Nakamoto minted the first NFT in 2009 on Bitcoin with Ordinal #1. This was inscribed using operation code data on the genesis block and was “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. For over a decade, people have used simple text and hashes to inscribe memorabilia on-chain, including the Bitcoin whitepaper itself. However, with the introduction of Ordinals protocol by Casey Rodamor, serial numbers are assigned to individual satoshis which are the smallest subdivision of a Bitcoin. These ordering numbers are similar to serial numbers on dollar bills, bearing extra numismatic value to rare bills. While the Bitcoin protocol values one satoshi at one satoshi, Ordinals software allows collectors and NFT traders to pay extra to collect certain satoshis into their wallets. Ordinals typically only matter to curiosity-seekers and NFT traders, but they have driven tremendous transaction fees to miners.
Satoshi Nakamoto’s past statements indicate support for experimental features and applications on Bitcoin. Inscriptions have driven up the amount of data that needs to be processed on the Bitcoin network, leading to the number of pending transactions in Bitcoin’s mempool rising dramatically. Transaction fees reached $30 on some days this month. Attracted by novelty and profit potential, traders have been flocking to Bitcoin Ordinals, and single inscriptions can sell for over 50 Bitcoins. Moreover, Ordinals-based BRC-20 token, ORDI, which was non-existent one month ago, has its own $160 million market capitalization.
Ordinals allow Bitcoin to use the experimental standard called BRC-20, enabling minting of non-BTC tokens on the Bitcoin blockchain. Its supporters say it’s similar to Ethereum’s popular ERC-20 standard. The BRC-20 standard allows token creators to attach them to Ordinals by adding a JSON file defining the token’s characteristics. BRC-20 supporters say the standard allows for DeFi, tokenization, and experimentation with new features directly on Bitcoin.
In conclusion, Ordinals have brought a new wave of popularity to Bitcoin and reimagined it as a place for storing art, movies, collectibles, tickets, and even video games. For traders, the opportunities to profit from NFTs and BRC-20 tokens are now abundant. The emergence of Ordinals has certainly added great value to the oldest blockchain while also allowing for experimentation with new features.
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According to https://protos.com/bitcoin-suddenly-becomes-second-biggest-nft-blockchain/
The material in this article is written on the basis of another article.