BTC NFT New narrative set to explode? Explain in detail the NFT project and infrastructure status of Bitcoin network

Rumor has It that Bitcoin Punks have risen a hundred times? A detailed Explanation of the NFT Project and infrastructure of Bitcoin Network

原文作者：雾海，PANews

Recently, the casting and issuance of NFT on the Bitcoin network has constantly appeared in the public eye, and the community attitude has changed from ignorance at the beginning to half-knowledge and then to active participation. According to the Dune Data Panel, 33,517 NFT objects have been created on the Bitcoin network, with 12,102 being created on a single day on February 9.

Among them, the NFT project Bitcoin Punks, based on the Ordinals protocol of the main bitcoin network, was minted at 15:00 on February 9, with a total of 10,000. Bitcoin Punks is currently completing the collection, parsing the existing inscriptions and verifying the first upload node of each Punks. The final JSON mapping of the 10,000 collections will be written into the Ordinals protocol within the next 24 hours.

According to official information, Bitcoin Punks was the first project to successfully upload the original Ethereum CryptoPunks to the bitcoin blockchain using Ordinals. To create the site, the team was checking the hash value of every image uploaded to Ordinals and comparing it to the original 10,000 Punk images, officials said. The link to Bitcoin Punks is the first occurrence of the inscription (lowest ID) containing the corresponding hash value on the Ordinals protocol.

Bitcoin Punks are created by downloading a sparrow wallet, creating a Native Segwit wallet (P2WPKH), and creating a Taproot wallet (P2TR) to receive Bitcoin Punks. Then go to Bitcoin Punks official website to find the Punks number that has not been minted, and then go to cryptopunks.app to download Punks pictures with corresponding numbers. Finally, I went to the official website of the full-node Bot of Ordinals protocol to upload the picture downloaded in the last step, and used the created Native Segwit(P2WPKH) wallet to pay bitcoin to the full-node Bot, and used the Taproot(P2TR) wallet to receive the collection. There are both Lightning and regular Bitcoin transfers, which are generally faster.

Bitcoin Punks cost about $25 to mint and are not currently traded over the counter. In addition, in the casting process, because the payment of bitcoin is in the form of a single order, and the Bitcoin network payment speed is slow, multiple users with different information on the whole network can make a successful payment when casting Punks with the same number, but only the user with the earliest block confirmation can finally get Punks. This resulted in a lot of users paying Bot fees, but ultimately not getting Punks.

According to Twitter KOL information, the secondary market price of Bitcoin Punks reached more than 1 bitcoin after the completion of the minting, which is up to 100 times higher than the cost price. However, according to PANews in the community watch, Bitcoin Punks have not had any transactions at present, that is to say, there is no buyer's market, a hundredfold increase is rumored. Community members need to carefully discern information and not be misled into losing money.

How is the development of NFT on the Bitcoin network?

On January 21, 2023, software engineer Casey Rodarmor released version 0.4.0 of the Bitcoin network NFT protocol Ordinals, officially bringing NFT into the main bitcoin network. The protocol essentially supports bitcoin versions of NFT, which are described on the Bitcoin network as "digital artifacts that can include jpeg like images, PDFS, videos, and audio formats. Since the Ordinals Agreement was launched, Ordinals NFT projects have been launched. Dune shows that Ordinals NFT has grown rapidly since February, most of it in graphic content.

Bitcoin Rock

Bitcoin Rock has a circulation of 100 and is the first Bitcoin network NFT project to be issued under the Ordinals protocol. dotta, CEO of Forgotten Runes Wizard's Cult, a NFT project, bought a Rock on February 1 for 0.2 bitcoin. According to the official Twitter feed, the current trading price rose to 1 bitcoin. And the team has donated 10 BTCS to members of the Ordinals team in appreciation and support of their work.

Ordinal Punks

Ordinal Punks is a PFP collection minted in the first 650 inscriptions of Bitcoin, with a circulation of 100. According to people connected with the project, Ordinal Punks "uses an open-source algorithm and the CC0 Punk sprit to generate new Punks." Ordinal Punks' first tweet came out on January 31. On February 1, at 4am, the casting was started in one day and the price was 0.01 bitcoin. According to a tweet from the robot Ordinal Punk Sales, Ordinal Punks first traded at 0.07 bitcoins and is currently trading at a high of 9.5 bitcoins worth $241,000. The number of transactions totaled more than 30 times.

dingaling, a well-known NFT community user, bought Punk 27 (inscription #444), Punk 48 (ins #483), and Punk 73 (ins) on February 9 for 15.2 bitcoins (211 Ethereum) #599), Punk 80 (ins #606), Punk 88 (ins #614), Punk 91 (ins #617), Punk 92 (ins #618) A total of 7 Ordinal Punks collection, And that there is a real moment behind each inscription number.

Meanwhile, Bitcoin Shrooms, which claims to be the last fortress of human digital art before the coming artificial intelligence, and Shadow Hats have opened official Twitter accounts and official websites, but have not yet started casting.

In addition, the NFT project On the Edge of Oblivion, which was launched on the Ethereum network and promises to cross-link to the Bitcoin network, and whose inscription order is based on the ID of the owner's collection ERC-721, went from 0 to 2.4ETH, 555 units in circulation, Current trading volume is 1000 ETH. This shows the current FOMO sentiment towards NFT projects on the Bitcoin network.

Bitcoin network NFT infrastructure status

The basic setup related to bitcoin network NFT is in the very early stage, so the casting cannot be as convenient and simple as ethereum network. We need to learn to create different forms of wallet, distinguish different forms of payment methods, and synchronize all nodes of Bitcoin network before we can participate in the casting of NFT based on Ordinals protocol. There is no secure peer-to-peer trading tool like Opensea. Instead, the order book is updated using a shared spreadsheet, and sales can only be done over-the-counter or through escrow. It inevitably involves cheating.

Bitcoin Punks can be quickly minted by a full-node Bot developed and built by members of the community. If it takes a long time for an individual to complete the synchronization of all nodes, it can not be completed overnight. The following is an example of community members synchronizing all nodes of the Bitcoin network. However, at present, because the casting mode is order number mode, the user cannot know whether a certain ordinal number has been successfully connected to the chain. As a result, even if the casting of full-node Bot is unsuccessful, the user fee is charged at the same time, which causes the use threshold for some users.

Following the launch of the Ordinal protocol, the daily average Bitcoin block size hit a three-year high of 2,021,079.56. On February 7, Pierre Rochard, vice president of research at bitcoin mining company Riot Platforms, tweeted that the Inscriptions of the NFT protocol Ordinal, the bitcoin network's network, are using up 50 percent of the bitcoin block space, Block space utilization is 100% and the median rate is down.

As a result, the NFT Bitcoin community is divided over issuing NFT Bitcoin on the Bitcoin network based on the Ordinal protocol. Some believe it will provide more financial use cases for bitcoin, which will drive up demand for block space and thus fees. Bitcoin educator Dan Held, for example, argues that as block awards get smaller, miners will become increasingly reliant on transaction fees. If Ordinals does increase competition for block space, higher transaction fees may allow miners to continue protecting the Bitcoin network.

Others see it as a departure from Nakamoto's vision of Bitcoin as a peer-to-peer cash system, and that these FT-like structures have taken up block space on the Bitcoin network, potentially driving up transaction fees. For example, Satoshi Nakamoto rejected the idea of expanding the Bitcoin system in 2010, saying that "it is not scalable to stack every proof-of-work arbitration system in the world in one data set." Related: Uncovering the Ordinals Controversy: Is it OK to post an NFT on the Bitcoin Blockchain?

In this regard, PANews believes that many users enter the blockchain and Web3 not because of bitcoin, so they know little about the Bitcoin system. A large number of users have never used the bitcoin wallet, never used the bitcoin transfer, and do not know what the Bitcoin full node and lightning network are. The launch of Nostr social protocol and Ordinals protocol has increased the application scenarios on the Bitcoin network, guided more users to start to understand and understand the Bitcoin ecology, so that more users start to use Bitcoin. Therefore, it is not a bad thing that the Bitcoin network is open to development and multi-directional experimentation. As for how it develops, whether it is good or bad, the market is free to play and decide.

As for the infrastructure related to bitcoin network NFT, with the increase of wealth effect and users, and the continuous competition among ecological products, it will be gradually constructed and improved. At present, what we can do is to pay more attention to the development of Bitcoin network ecology. At the same time, it should be noted that the current NFT projects on the Bitcoin network are in a state of confusion, and most of the initial projects belong to the gold in the sand. Users need to make careful adjustments when looking for business opportunities to avoid asset losses.

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