"Digital artifacts", aka #nfts on the Bitcoin chain.
What is a Bitcoin NFT ?
Bitcoin NFT refers to NFTs that are being created on the Bitcoin chain using the Ordinals protocol.
The Ordinals project refers to the Bitcoin NFT as a “digital artifact”.
How is it different from other NFTs?
- NFTs started in the Ethereum chain &have since found their way to Solana, Polygon & other chains.
- NFTs are implemented using smart contracts technology.
- Bitcoin NFTs are being implemented using the Ordinals protocol and are a part of the main Bitcoin chain.
- Bitcoin NFTs using the Ordinals protocol are referred to as digital artifacts.
NFTs can point to off-chain content, whereas all the content of a digital artifact is contained within the Bitcoin blockchain.
What is the Ordinals project?
- Ordinals is a protocol built to operate on the Bitcoin chain.
- Its aim is to convert an individual Satoshi into an NFT referred to as a digital artifact.
- In other words, a fungible Satoshi token is converted into a non-fungible NFT token.
What is an inscription ?
- An inscription refers to a stamp that is imprinted on a Satoshi.
- The stamp is typically an image or other content and is typically a part of an NFT collection.
- An inscription converts a Satoshi to a unique NFT or digital artifact within a collection.
- Ordinals provides the technology to inscribe an image onto a Satoshi thereby converting it into an NFT, referred to as a digital artifact.
How can I buy a Bitcoin NFT ?
Bitcoin NFTs are currently being sold in peer-to-peer transactions and can be bought by joining Bitcoin NFT discord groups.
How many Bitcoin NFTs have been minted ?
As of February 8th 2023, about 10,000 Bitcoin NFTs have been minted.
Concerns around Bitcoin #NFTs
- Several concerns have been raised regarding placing NFTs on the Bitcoin blockchain.
- Bitcoin maxis are worried that it takes away from the heart of Bitcoin’s intent of being sound money.
Other technical/logistic concerns include :
- Increased block size.
- Increased transaction costs.
- Censorship issues around the NFT content.