Sell Bitcoin: The world of cryptocurrency has been shaken by a new development – Bitcoin NFTs. Non-Fungible Tokens, or NFTs for short, have taken the crypto world by storm in the blink of an eye. If you’re wondering what this new phenomenon is, then we’re here to tell you all about it! In particular, we’ll delve into the topic of Bitcoin Ordinals, exploring what they are and how to create and sell them.
Whether you’re a crypto enthusiast or just someone looking to explore new opportunities in the digital currency market, this is a trend you simply can’t afford to ignore. So, let’s get started with a comprehensive guide that covers everything you need to know about Bitcoin NFTs and how you can benefit from this exciting development.
Bitcoin nonfungible tokens (NFTs) have quickly taken the crypto world by storm, kicking open the door to new opportunities for the oldest blockchain and digital art fanatics alike. With their explosion in popularity in 2020, it’s no surprise that NFTs have been typically manufactured and traded on Ethereum-based platforms, among others like Cardano and Solana.
However, a new protocol called Ordinals hit the market in January of 2023 and was developed by the former Bitcoin Core contributor, Casey Rodarmor. Rodarmor utilized the 2021 Bitcoin Taproot upgrade, which helped to increase the cryptocurrency’s capabilities while enabling on-chain Bitcoin-native NFTs.
This upgraded version of Bitcoin offers several benefits, such as expanding the base layer’s block capability, condensing the size of transactions requiring less data usage, and encouraging the use of smart contracts on Bitcoin. With the upgrade, Bitcoin now provides new transaction types that include decentralized finance (DeFi) and NFT applications.
Fast-forward to February of 2023, and Yuga Labs, the world’s largest issuer of NFTs, announced the creation of TwelveFold. The new NFT collection was issued on Bitcoin, providing true endorsement and evidence of Bitcoin NFTs’ success.
So, what do we need to know about Bitcoin NFTs? How do they differ from the popular Ethereum-based alternative, and how do we make and sell them? Read on to find out more.
What are Ordinals?
Ordinals play a crucial role in the world of Bitcoin and cryptocurrency. Satoshi (sat) is the smallest unit of Bitcoin and ordinals are serial numbers that are imprinted in a single, unique satoshi. These serial numbers are assigned to the satoshis in the order they are mined, based on the ordinal theory. In other words, the first satoshi in the very first block would have an ordinal number of 0, while the last satoshi of that same block would have an ordinal number of 4,999,999,999.
Interestingly, the concept of colored coins was first introduced in 2012. This allowed crypto assets to represent something of value by adding metadata information. Another example of embedded data in regular Bitcoin transactions is Counterparty. This extension utilizes its own XCP token which provides unique new functionality, leading some to consider it an altcoin rather than an extension or second layer for Bitcoin.
The ordinal theory makes it possible for satoshis to possess numismatic value. Satoshis can be collected and traded like rarities, all while being tracked, transferred, and ingrained with meaningful data like pictures, text, or videos. These transactions remain permanently on the blockchain and data can be viewed on various Ordinals-compatible wallets like Sparrow Wallet and online explorers. In summary, ordinals in Bitcoin are fascinating in their potential to add unique value to cryptocurrency transactions.
Bitcoin has a unique process to assign digital assets to individual satoshis known as an inscription. A term that describes the digital artifacts natively present on the Bitcoin blockchain, it is the digital equivalent of physical artifacts. What’s remarkable is that these inscriptions are unique to the blockchain and don’t require a sidechain or a separate token to exist.
Inscriptions use the Ordinals protocol to inscribe sats with content on ‘ord’, a sophisticated system that’s powered by an index, an explorer, and a wallet that relies on Bitcoin Core for private key management and transaction signing. This ensures that each satoshi can be tracked seamlessly on Ord and viewed through the Ordinals explorer, showcasing all the necessary information, including its location and ordinal number.
What sets inscriptions apart from conventional NFTs is their association with Bitcoin’s immutability and security. Unlike NFTs relying on off-chain content stored on the InterPlanetary File System (IPFS), inscriptions are permissionless and uncensorable digital artifacts that can be sold and traded without a royalty. How remarkable!