How Are Bitcoin NFTs POSSIBLE? Ordinals Explained

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How Are Bitcoin NFTs POSSIBLE? Ordinals Explained

How Are Bitcoin NFTs POSSIBLE? Ordinals Explained

Ethereum may have popularized NFTs but did you know that Bitcoin NFTs  were already around back as far as 2014?Let’s take a look at these 2 similar-looking NFTs, both on Bitcoin. Although one is much older than  the other, there’s little reason to suspect how they could be fundamentally different.But they are.Rarepepe functions similarly to your Apes, Punks, and Penguins on Ethereum. It’s basically  a tokenized picture or artwork on the Bitcoin network. A little fun fact – Rarepepe was one  of the very first NFT collections on Bitcoin, dating back to 2016. This particular piece was  even sold at a Sotheby’s auction for an eye-watering $3.6 million back in 2021Bitcoin Punk on the other hand works a little differently from its predecessor.  Thanks to Ordinals, a controversial new protocol deployed on Bitcoin,  we can now assign various assets like videos, images like this punk,  or even games to individual satoshis – the smallest unit of Bitcoin.This process is called inscription.Since inscription is carried out directly on a satoshi,  there’s no longer a need for a side chain or additional token to house your beloved NFTs. Since its launch in January, the Ordinals project has absolutely consumed the Bitcoin community,  sparking heated debates; questions about the ultimate purpose of the Bitcoin network; arguments  about the social, political, philosophical and moral havoc that these NFTs could wreak. It’s clear that Ordinals have torn a rift in the Bitcoin community.. but why?Long before Ordinals, an idea floated around the Bitcoin community of inscribing a domain  name system into Bitcoin. The project, BitDNS was quickly shot down by Satoshi,  citing the fact that Bitcoin was invented to be a decentralized, peer-to-peer financial system. And now, the rise of Ordinal NFTs has once more rekindled this age-old debate  about how Bitcoin should be used and what it should be used for. On one side, we have the Bitcoin maximalists – the ultimate Bitcoin enthusiasts,  the old-school purists who religiously adhere to the teachings and vision of Satoshi Nakamoto.  They see Ordinals as an affront to the essence of what Satoshi and Bitcoin should stand for.While it’s true that this new wave of Bitcoin Ordinal NFTs have driven more  attention and activities to the network, there are issues too.Security issues.Economic and social issues.Philosophical, moral issues.It certainly didn’t help when groups like Taproot Wizards also decided to troll the network with  the largest block and largest transaction in Bitcoin history, causing a spike in network feesIn essence, this is also a battle of ideologies between meme-loving  NFT collectors versus the Bitcoin purists.Despite how you may feel about Bitcoin NFTs, the fact is that they have brought about some good to  the network too. Since its launch, Bitcoin has hit a record 44 million non-zero addresses. Miners are  earning more now thanks to the increase in network activities. Bitcoin adoption is rising, and  Ordinals have shown us the capabilities, potential of Bitcoin beyond just basic transactions. Whether  or not this is “good” remains to be seen.At the moment though, Ordinals show no  sign of slowing down, with more and more NFTs being minted to Bitcoin by the day.So what do you think? Would you sacrifice tradition for  the sake of progress? Even when that is against the original vision of Satoshi?Also surprise, contrary to popular belief, Bitcoin ISN’T the first crypto. Check out  our video here to find out who the true grandfather of crypto really is.

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