NFTs on Bitcoin: The Killer App of Crypto is Here!

Overview of Bitcoin NFTs and Ordinals

  • NFTs: Non-fungible tokens have been a breakout application for Ethereum and other blockchains in the last few years.
  • Ordinals: A protocol was created to make it possible for NFTs to exist on Bitcoin.
  • Benefits of Ordinals: More value stored on Bitcoin increases incentive to participate in the network, making it more competitive and driving up the value of bitcoin.

The Impact of Bitcoin NFTs with Ordinals

What are NFTs?

Non-fungible tokens (NFTs) are digital assets built on a blockchain that represent ownership or control over digital or physical assets. They are unique, non-interchangeable items that can be used to represent anything from artwork, music, videos, collectibles, and more. In the last few years, they have become increasingly popular as their use has extended beyond just buying and trading crypto — they’ve become a way to certify authenticity, store information securely and even create digital scarcity.

What Are Ordinals?

Ordinals is a protocol that allows people to inscribe data on Bitcoin and assign ownership of that data using “marked” satoshis. These inscriptions are written directly onto the blockchain when an individual satoshi is marked with an inscription. The first ordinal created is numbered “ordinal 0” and each subsequent ordinal increments this counter by one – all ordinals form a single NFT collection. There was an initial rush to create these inscriptions as people paid more than $16 million in bitcoin for 288 Yuga Labs ordinals.

Why Are Ordinals Good For Bitcoin?
With ordinals now possible on Bitcoin we can store non-fungible digital assets directly onto its blockchain which incentivizes further participation in the network through increased miners’ competitiveness. This increase in BTC nodes has further driven up the value of bitcoin making it more attractive as a store of value – something which has led many collectors to view it as the new “gold standard” for digital asset storage.

The ability for NFTs to be inscribed directly onto Bitcoin proves its worthiness as a reliable store of value – one which will only strengthen its place amongst global currencies going forward into 2021 and beyond. It’s clear that while Ethereum may still hold dominance over some aspects of blockchain technology it’s becoming increasing apparent that there is much potential left untapped within BTC networks too – something we should look forward to exploring as we continue our journey into this ever evolving space!