The Rise of BRC-721E: Non-Fungible Tokens on the Bitcoin Network
Bitcoin continues to surprise the crypto world with new possibilities. In addition to the BRC-20 standard and the first stablecoin on the network, a new standard has been added: BRC-721E. This latest development allows non-fungible tokens (NFTs) from the Ethereum network to be transferred to the Bitcoin network, opening up a range of possibilities for the use of Bitcoin for digital art and collectibles.
Moving NFTs from Ethereum to Bitcoin
To move NFTs from Ethereum to Bitcoin, users must “burn” their NFTs on Ethereum. Burning refers to the process of permanently deleting tokens. After the NFT is burned, it can be transferred to the Bitcoin network via subscription. With the Ordinals protocol, it is possible to link information to individual satoshis. Once linked, the tokens can be seen on the Ordinals Market, creating new possibilities for digital art and collectibles on the Bitcoin network.
Bitcoin Community Watches with Skepticism
The Ordinals protocol has sparked a wave of activity on the Bitcoin network, opening up possibilities that were previously unimaginable. However, since its introduction in January 2023, the project has received a range of responses from the crypto community. The launch of the BRC-20 standard caused a storm of memecoins, which put a considerable strain on the network and caused a significant increase in transaction costs. Although the transaction volume has now decreased, the number of inscriptions is still increasing. According to information from Dune Analytics, the number has now passed 10 million. The NFT trading volume even came in second place, above Solana (SOL).
However, the rise of Ordinals and the minute of new tokens and NFTs is not unanimously welcomed. In particular, the inefficiency of the protocol has been criticized. Members of the Bitcoin community are skeptical about the use of Bitcoin for NFTs and digital art, which they view as a departure from Bitcoin’s original purpose as a decentralized currency.
The Future of NFTs on the Bitcoin Network
As the use of NFTs for digital art and collectibles continues to grow, so too does the potential for the use of Bitcoin in this field. While the Bitcoin community may be skeptical, the rise of BRC-721E shows that there is demand for NFTs on the Bitcoin network. As the technology improves and becomes more efficient, it is likely that we will see even more activity on the Bitcoin network with NFTs and other digital assets. The future of Bitcoin as a decentralized currency remains uncertain, but its potential for digital art and collectibles is becoming increasingly clear.
The addition of the BRC-721E standard to the Bitcoin network has opened up new possibilities for the use of Bitcoin in the NFT and digital art space. By allowing NFTs from the Ethereum network to be transferred to the Bitcoin network, Bitcoin is positioning itself as a potential player in the digital art and collectibles market. While the Bitcoin community remains skeptical, the rise of Ordinals and the growing use of NFTs on the Bitcoin network suggests that this area is ripe for innovation and growth.