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Bitcoin Ordinals: a new era for nfts or just a passing trend?Bitcoin NFTs are all the rage right now because of the launch and huge success of the "Ordinals" protocol. Ordinals provide a new way to create NFTs on the Bitcoin blockchain. The latest increase in Bitcoin resources is due to the launch of the CryptoPunks (Ethereum-based NFT) collection equivalent to Bitcoin. Although all the hype is meeting with mixed reactions from the web3 community. So what are Bitcoin ordinals? What are NFT ordinals? On January 21, software engineer Casey Rodarmor launched the Ordinals protocol on Bitcoin's blockchain. Each Bitcoin can be divided into 100,000,000 units called "sats" (short for Satoshi). This new protocol allows users and builders to inscribe each "sat" with data, known as ordinals. This data can also be smart contracts and then NFTs can be minted on them. In essence, the Ordinal protocol allows builders to create NFTs on the Bitcoin blockchain. Furthermore, one of the key distinctions between Ethereum-based NFTs and Bitcoin is that Ethereum NFTs usually point to off-chain data on the IPFS system. With this protocol, all data is inscribed directly on-chain. "An Ordinal is meant to reflect what NFTs should be, sometimes are, and what inscriptions always are, by their very nature," Rodarmor says. This new ecosystem could benefit the NFT industry in general by enhancing the very concept of digital collectibles. In addition, because of the entirely on-chain data enrollment for Ordinals, Rodarmor refers to them as something beyond NFTs, calling them Digital Artifacts. How do Bitcoin Punks change the game? February 8th was just another day in the web3/nft space, until a Twitter profile with a dozen or so followers and a discord server with just 20 members appeared on the scene. To make the BTC Punks website, the team of developers checked the hash of every image uploaded to Ordinals and compared it against the original 10k punk images. The links to Bitcoin Punks are the first-seen inscriptions (lowest ID) that contain these hashes on Ordinals. After a few hours, everything changed, and the storm of bitcoin punks began. The fomo spread quickly on Twitter and among the various discords, with a real onslaught of inscriptions of these punks, even slowing down the bitcoin network. In many ways, Bitcoin Punks mean a new wave of NFT bitcoin, digital collectibles, and marketplaces. Bitcoin Punks are the first byte-perfect uploads of the original Ethereum CryptoPunks onto the Bitcoin Blockchain using Ordinals. The entire 10K collection minted out in less than 24hrs, with one Punk (#620) sold for 9.6 BTC (~$214,766.50). However, one of the problems with the project at the moment is that there is simply no market to buy and sell the cryptocurrency once minted. But this, of course, does not prevent the Web3 community from buying and selling the digital pieces. So far more than 80k ordinals have been inscribed on Bitcoin's blockchain. There has also been a backlash against the entire protocol from Bitcoin maximalists. According to them, the whole idea of Bitcoin NFT is against Bitcoin as a financial resource. Some even argue that Ordinals are just a waste of network space compatible with Bitcoin. How to actually purchase ordinals? To purchase an NFT Ordinal , one must first download a Bitcoin-compatible wallet. I've been using a Sparrow since the beginning of this new "meta". Once done, the user must then follow a detailed guide from GitHub to make the BTC wallet compatible with Ordinals. Next, the user must run their Bitcoin node and inscribe an ordinal (which would not be possible with bitcoin punks now since the project has been minted). Then there are two other options available for people to purchase a BTC Ordinal NFT. Using Emblem Vault and buy ordinals on OpenSea, with ethereum. Emblem Vault is a tokenized multi-asset wallet on the Ethereum blockchain that can contain one or more tokens or NFTs. You can use Emblem Vault to trade portfolios of NFTs and cryptocurrencies, including assets from different chains, as a single token. Most of the nfts collectors are using Emblem to buy and trade NFTs on Bitcoin. The other easy way is to find ordinal owners and purchase it from them directly (OTC). Owners can be found on Discord servers. Browsing the link-your-project channel on their discord allows users to explore what Bitcoin projects are out there. This is, of course, a huge risk for potential customers, as the sites and discords could be total rugs. Also, unless there is trust between buyers and sellers of the project, it can lead to scams and fraud. In addition, BTC ordinals can take hours or even days to appear in your BTC wallet. Create an Inscriptions. Moving on, if you want to create/register an Ordinal yourself, there are services out there that allow this. The services allow users to register them without actually running a node. For example, the popular Bitcoin project Satoshibles has created an OrdinalsBot, which allows users to inscribe NFTs into their Bitcoin wallets. I personally used OrdinalsBot to inscribe Bitcoin Punks during the first day of "mint".
by cryptohubble
Is NFTfi the future for the crypto?In 2020-2021, DeFi was the main driver of market growth and bull cycle development, giving users more uses for tokens and opportunities for users to earn. DeFi will likely no longer be able to give the same opportunities to the crypto market due to the lack of implementation of new breakthrough concepts. The only thing DeFi apps can do is to give a lighter user experience, but that probably won't have the same effect as in 2020-2021 But there is another sector which can repeat and is likely to surpass everything which was given by DeFi. Is it really NFTfi? Let’s go step by step: 1. DeFi were created for ERC-20 to give the users more opportunities to use it. NFTfi are created with the similar aim, but for the ERC-721/ERC-1155 standard tokens. 2. ERC-20 is the project tokens based on a blockchain. ERC-721/ERC-1155 are the project tokens based on a blockchain. 3. The projects, which had the ERC-20 tokens, have their own products and applications. We can say the same about the ERC-721/ERC-1155 tokens. At first sight, we see that these two sectors are identical to each other. Why can the NFTfi and ERC-721/ERC-1155 tokens give the market much more than DeFi and ERC-20 could? ERC-721/ERC-1155 is a natively more understandable technology: trading pictures with a monkey is more understandable than trading token SocialFi platform or AI solution. NFT is a more scalable technology as it allows you to tokenize a single cluster, whose object has unique properties and cannot be evaluated like any other object within the cluster. For example, real estate, premium and unique accessories, resource deposits and other. It is much easier to make convenient and simple NFTfi applications for NFT. NFTfi is the same as DeFi, not for common tokens but for unique assets. NFTfi gives all the same application options as DeFi: loans, credits, p2p exchanges, liquidity pools, decentralized futures etc. At the moment the most promising and largest sector within NFTfi is NFT lending. NFT lending are products that allow NFT owners to borrow and lend. Lending is the first level of the whole financial system, just like TradFi, then DeFi and now NFTfi. A brief review of the TOP 5 products of the NFTfi sector for traders BendDAO ($BEND) TVL: $187m Price: $0.024 ATH price: $0.069 Market.cap: $9.3m FDMC: $243m ParaSpace (no tokens) TVL: $37.7m Jpeg’d ($JPEG) TVL: $23m Price: $0.0013 ATH price: $0.0066 Market.cap: $27m FDMC: $92m NFTfi (no tokens) TVL: $10m Frakt ($FRAKT) TVL: $6.6m Price: $0.1$ ATH price: $2.4 Market.cap: $487k FDMC: $5m As we can see, almost all projects from the NFT lending sector are undervalued by the market. TVL of projects which have a token is higher than the current market capitalization, and for Frakt it is even higher than the total capitalization. Two of the top-5 projects currently don't even have a token. Moreover, it's worth mentioning that many cutting-edge and exploding products are also still under construction. Conclusion Now we can conclude that the NFTfi market is severely underestimated, considering that the NFT sector takes about 50% of all transaction turnover on Ethereum, for example, and Solana got users and developed as a project only through NFT. If the idea was interesting, give us a rocket and express your opinion on the topic. Soon we will post a second part of it, where we will look at other projects and mention the ones that may become the leaders of the market after the launch. Stay tuned!
Education
by Samura0x
5
Are NFT Marketplaces a trend today? Which assets to choose? The anticipated release of $BLUR could force traders to reevaluate the NFT marketplace sector and create a wave of growth. In this article, we will gather the main assets from the NFT marketplace sector and compare their metrics and products. The major players in the sector, the two biggest players OpenSea and Blur have no token LooksRare ($LOOKS) Price: $0.3 ATH Price: $5.3 Market.cap: $145m ATH Market.cap: $757m FDMC: $308m Although $LOOKS is one of the largest companies in the sector, it is risky enough to buy the token. $LOOKS has a large number of stakers, some of whom bought and accumulated the token at lower prices The $LOOKS token has risen 131% in the last 3 months. SuperRare ($RARE) Price: $0.17 ATH price: $3.1 Market.cap: $56m ATH Market.cap: $317.8m FDMC: $170m One of the most popular niche marketplaces where unique art is traded, not collections. It is also interesting because it's listed on Binance, and Binance retail investors are willing to buy anything that's trending and can give profit. $RARE token is up 92% in the last 3 months X2Y2 ($X2Y2) Price: $0.21 ATH price: $3.2 Market.cap: $38.6m ATH Market.cap: $300m FDMC: $209m It is the largest volume marketplace after Blur and OpenSea, but its token is lower by all metrics than $LOOKS, for example. It can be considered as a potential alpha for narrative growth and one of the hidden gems along with $RARE. $X2Y2 is up almost 400% in the last 3 months. Rarible ($RARI) Price: $2.27 ATH price: $45 Market.cap: $867m ATH Market.cap: FDMC: $56m One of the oldest projects of the sector. It has the smallest metrics for today.. RARI token has risen 34% in the last 3 months A little bit about $BLUR The Blur project now is a direct competitor to OpenSea, whose capitalization was estimated at the market peak in 2021 at ~ $1b. The release of $BLUR with roughly the same performance for FDMC may prompt the rest of the market to review token prices for projects from the same segment and, even more interestingly, may prompt OpenSea to give up issuing shares and going public and move to prepare for a token issue so as not to lose its position in the market Conclusion This year may be a pivotal year for the entire NFT sector. The largest companies in the real sector have increased their presence in this market and almost all of them have their own initiatives for denser integration. The possible token rally of NFT marketplaces could be just the beginning of this trend Share your thoughts about NFT projects in a comments section, whether it worth trading/investing or not. Maybe you did some profit with it and you're ready to share your experience. Also check links and start trading with us! Thank you for reading!
Education
by Samura0x
8
Ordinals on Bitcoin - A Cybersecurity Necessity or Just Hype?With the Launch of NFTs on the Bitcoin chain by Ordinals last month, the community is divided on what this means for Bitcoin as a chain and its future. NFT's have been a mainstay on several blockchains for years now, but until now their prevalence on the Bitcoin chain was understated. With the launch of the project Ordinal Protocol, that's changing. What is Ordinal Protocol Ordinal Protocol, created by Bitcoin Core contributor Casey Rodarmor, enables users to explore, transfer, and receive individual satoshis (1 millionth of a BTC), which can include unique inscribed data such as videos and images. Inscriptions make it possible to put content in a Bitcoin transaction and assign it to a satoshi. Once mined, the inscription is made on the first satoshi of the first output of the transactions, marking that satoshi permanently with the inscribed data. This process stays entirely on the main Bitcoin blockchain and does not require a sidechain or additional tokens. The protocol is enabled by Taproot - a BTC soft-fork upgrade that was activated in 2021 and brought enhanced security and smart contracts to the network. In addition to inscribing data into a single satoshi transaction, Ordinal also allows people to assign a unique serial number to each satoshi. This means that the first satoshi's in the output of notable transactions can have value for collectors even without an inscription within them. For instance, the first satoshi of the genesis block, or the first satoshi after each halving could become collectible due to their historical significance. In a way, this compromises the fungibility of Bitcoin but in reality a parallel could be drawn between these non-fungible Bitcoin's and bank notes or coins that people collect. They do not affect the fungibility of all Bitcoin, and regular users can continue to use them normally as well. Ordinal Inscriptions are, in many ways, superior to the NFTs that most people are familiar with. Ordinals are digital artifacts which means they are decentralized, on-chain, immutable, and unrestricted. Many popular NFT projects don't actually meet these requirements as they are often stored off-chain, controlled by centralized minters, and often on very centralized blockchains. Even with its novel and Bitcoin native approach, the project remains controversial among the community. Detractors Many prominent Bitcoin developers, including Adam Back, were quite opposed to the idea of Ordinals on Bitcoin, claiming that it was a waste of block space. This also led to a discussion over whether miners should censor these resource intensive and "useless" transactions. NFTs take up valuable block space on the network that will raise the cost per transaction for all users. Full nodes need to download the inscribed data when they receive confirmed blocks. With JPEGs and Videos, these blocks can be far larger than conventional transaction blocks requiring node operators to dedicate more resources. Proponents Blockspace in Bitcoin is assigned using a free-market auction. This allows Bitcoin to be fair, open, and accessible to everyone. As such, the free-market should be left to dictate how blockspace is assigned instead of a perceived "utility". With Bitcoin's tokenomics, most miner revenue currently comes from block rewards instead of fees. Although this is not currently a concern, as the block reward continues to become smaller, the security model of Bitcoin comes under threat. A Bitcoin native application like Ordinal provides an additional use-case for Bitcoin, which is mainly used as a transaction protocol for exchanging value right now. By filling up unused block space, Ordinal transactions incentivize users to pay higher-than-minimum fees to make sure their transaction is included faster which will drive organic revenue towards miners. Although, Ordinal protocol transactions provide a potential path to addressing a long-term security concern for the Bitcoin network, it also disincentives normal users of the network in the short-term. Overall, Ordinal transactions have led to a spike in BTC network activity as well as fees. Still, as with most NFT projects, there is a high chance that the hype surrounding the project ends up fading away and Ordinal related transactions drop off again. However, the project has prompted an interesting discussion about the long term security and utility of the Bitcoin Blockchain. Regardless of whether Ordinals end up being a fad or a mainstay on the network, they've illustrated that blockspace and fees will be dictated by the free-market. We could soon see more similar projects now that Taproot allows smart contracts to be executed on Bitcoin. What are your opinions on Ordinals, NFT's, and the long term security model of Bitcoin?
Editors' picks
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by mintdotfinance
5
HIMEEBITS - You Never know when this HI coin will start Mooning!HIMEEBITS - You Never know when this HI coin will start Mooning! This chart shows you some areas of interest... If the market cap at the ATH was $810B, it will not take much to blast off with the current Market Cap at $1.03 TRILLION. NFT Exchange Traded Fund <--- (NFTETF) This is one of many HI coins that could go on a moon mission any time. Set Your Alerts! Gonna be posting another one that is looking to get some traction! Good Luck Out There!
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by BuddaCo_LifeStyle