At first, non-fungible tokens (NFTs) were created on the Ethereum blockchain, still the most used network for minting NFTs. The high gas fees made people switch to other alternatives like Polygon, Solana, Cardano, etc. However, Bitcoin NFTs? That’s something new and unexpected.
It’s possible to create Bitcoin NFTs
Last night, we made history
The gatekeepers tried to censor us
But we mined the LARGEST BLOCK and LARGEST TRANSACTION IN BITCOIN’S HISTORY
Special thanks to bitcoin full node operators for supporting our efforts and hosting our 4MB NFT for all eternity!
gm @TaprootWizards 🧙♂️ pic.twitter.com/uKGG918af8
— Udi Wertheimer (@udiWertheimer) February 2, 2023
NFTs used to be one of the reasons why we need altcoins like Ethereum or Polygon. NFT minting wasn’t simply a thing on the Bitcoin blockchain. That all changed when indie developer, Udi Wertheimer, mined the largest block ever recorded, containing around 4 million transactions.
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Although developers have defended the transaction as an innovation built on the principle of “Ordinals,” some have called it an attack on the Bitcoin network. Ordinals were developed to address the problem of Bitcoin’s stable public persona.
Due to the one-time nature of Bitcoin addresses and the local nature of wallet accounts, the ownership of public and private keys cannot be transferred from one person to another. Ordinals seek to address this issue by permanently identifying each satoshi in every Bitcoin transaction.
To facilitate the identification and distribution of NFTs, the “Taproot Wizard” NFT project’s publisher employs a unique satoshi to denote a JPEG image. Although novel, the idea has raised some alarm bells in the Bitcoin community.
Ordinals gain popularity
Last few weeks have seen a surge in interest in Ordinals, a controversial new project that allows users to store audiovisual assets similar to NFTs on the Bitcoin network. Not only did the last Thursday see the most Ordinals ever mined in a single day, it also saw an increase in network costs.
According to publicly available blockchain statistics compiled by Dune, more than 1,000 Bitcoin NFTs have been created using Ordinals. Ordinals’ release reignited a contentious discussion in the Bitcoin community concerning the optimal size of blocks, the nature of valid transactions, and whether or not media files like JPEGs should be recorded in the blockchain.
Bitcoin NFTs might be a threat
While it may seem all fun and exciting to mint an NFT on the Bitcoin network, it has some drawbacks to it. The rapid growth of the Bitcoin blockchain size due to large transactions and blocks will increase the requirements for devices running a full node.
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It might also lessen the network’s capacity to resist censorship. In addition, it could weaken the network’s security which may affect wallets, mining pools, and browser facilities, and cause occasional malfunctions.
#Ordinals: the next BIG THING in #NFTs!
How do I get a #Bitcoin Ordinal?
How do I get a @TaprootWizards?
Why is it better than #ETH?
Interview w/ @udiWertheimer!!!
🔴 CLICK HERE 👇
>> https://t.co/tKDl3mUDS0 pic.twitter.com/oc4op3dkeb— Altcoin Daily (@AltcoinDailyio) February 6, 2023
Allegedly, there is higher interest in Bitcoin NFTs from the Ethereum community than Bitcoin people, as NFT enthusiasts see Bitcoin as this OG blockchain.
Conclusion
Bitcoin enthusiasts must make a challenging decision on how to proceed. While Bitcoin NFTs sound great, addressing the raised concerns should be a priority number one before the network is halted with an endless number of JPEGs.
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