NFTs on Bitcoin? Learn here how that works!

09 - 02 - 23 Bart

Sure, we've been inundated with NFTs in the form of funny photos, collections, and memes on Ethereum and other chains over the past few years, but never before have they been found natively on Bitcoin.

Whats new?

Now that NFTs are also possible on Bitcoin, this is causing a lot of discussion. The Bitcoin community is generally not known as NFT fans. There is a big difference with the NFTs we saw before. These Bitcoin NFTs are stored completely on-chain, unlike most NFTs on other smart contract blockchains. This image data is typically stored off-chain on IPFS for scalability reasons.

The advantage of Bitcoin NFTs (also known as digital artifacts) is that they are more decentralized and independent of external systems. The downside is that you can give them fewer properties with smart contracts.

How does the technology work?

Creator of the ordinal number protocol Casey Rodarmor calls it on his blog: 'a numeric namespace for Bitcoin'. Ordinals provide the ability to make and track each satoshi uniquely. You can put an inscription on such a Satishi in the form of a jpg, for example.

It's a bit like engraving a 1 euro cent coin (maybe with something of value) which makes this 1 euro cent unique and always traceable. This is difficult with a physical coin, but it is now possible with a satoshi.

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