When we say that people are going crazy over inscribed data on a Bitcoin blockchain, we mean CRAZY. You’ve probably heard of the Bitcoin NFTs that are taking over the non-fungible space. Coined as Bitcoin Ordinal NFTs or digital artifacts, these non-fungible tokens are making thousands of dollars in trade and they are already competing with ETH NFTs. In fact, many known Ethereum NFT projects are being inscribed as Ordinals despite the controversy. Before you get the FOMO and freak out, not knowing how to get your hands on these on-chain digital assets, we got you covered. This article will guide you through how to find, buy, sell, create, and trade Bitcoin Ordinal NFTs.
What Are Bitcoin Ordinal NFTs?
Let’s have a quick recap on what Bitcoin Ordinal NFTs actually are. Unlike traditional ETH NFTs, Ordinals are minted without the need for smart contracts. Instead of the regular NFT’s tokenID and metadata that exists in a smart contract, Ordinals use satoshis (1/100,000,000 of one single Bitcoin) with on-chain inscription. An inscription is an asset stored in the form of arbitrary data on the Bitcoin Blockchain.
After inscribing a satoshi, the token becomes a digital artifact. However, it’s still non-fungible since there is no way to differentiate one satoshi from another. What the project Ordinal did was make a numbering scheme for satoshis that allows tracking and transferring individual sats. The difference between BTC Ordinals and ETH NFTs is that Ordinals’ data is completely stored on-chain! Check out this article to get the full backstory, information, and controversy sparked by these Bitcoin NFTs.
How Are They Doing So Far?
It’s safe to say that Bitcoin Ordinals NFTs are the HYPE of the season. Why? Because the inscriptions on the Bitcoin blockchain are still up and coming. Many Ordinal collections are emerging with some making thousands of dollars in trade.
Some collections copied popular NFT collections like Cryptopunks. Now we have Ordinal Punks. What’s the difference? Well, one is on Ethereum and the other is on Bitcoin. And the sales are CRAZY. One Ordinal Punk was sold for 9.5 BTC!! That’s almost $200.000!! Check out this article that goes through everything you need to know about these Bitcoin Punks.
And now Bitmap Block owners are getting tools to be able to add attributes to their blocks. This enhances block features and enables creativity.
1/ 🧵 Ordinals Wallet have put forward Bitmap Blocktribute Standard!
🟧A system devised to provide bitmap block owners with a tool to add attributes to their blocks, enabling a platform for creativity and potentially enhancing block features. pic.twitter.com/zTuhaIm4z5
— Ordinal Labs (@OrdinalLabs) July 27, 2023
Where Can You Find Bitcoin Ordinal NFTs?
So, if you are wondering where to find these controversial Bitcoin Ordinal NFTs, we’re here to help. Currently, there are no dedicated marketplaces to find already minted/inscribed Ordinals on the Bitcoin blockchain. Instead, you can find Ordinals in Discord channels. You can join this Discord server to learn about the new Ordinals project. However, keep in mind that this is NOT the official Discord for the Ordinals project. We might see a dedicated marketplace for Bitcoin-based NFTs soon at this rate of enthusiasm.
Here are some rising Bitcoin Ordinal NFT projects to check out:
How To Buy Ordinals?
Buying and trading Bitcoin Ordinals NFTs can be tricky for the average ETH NFTs user. Since there is no dedicated marketplace for trading, buying and selling these digital artifacts is done through manual order books and OTC trading. Users who wish to buy or transfer their inscribed NFTs will need a BTC wallet, the sparrow wallet. However, selling a Bitcoin Ordinal NFT is not that simple (More on that later on)
Here’s how to set up a Sparrow wallet:
#1. Navigate to Wallet Website
Visit the official website for the Sparrow wallet and choose the option that is compatible with your system. After running the file, click on ‘File’ and then ‘New Wallet” in the top left corner. Choose a name for your wallet and create it.
#2. Set Up Preferences
- In the Policy Type field, leave the default Single Signature.
- For the Script Type, change it from Native Segwit to Taproot.
#3. Generate Keyphrase
- Choose the number of words you want.
- Click on Generate New and make sure to save your keyphrase to avoid forgetting it. Then click on Confirm Backup to re-enter the keyphrase you saved.
#4. Create a Password
- After hitting Apply, create a password for your wallet if you want to.
- Click on Receive on the left and copy your address. Voila!
How to Create or Sell a Bitcoin Ordinal NFT
In order to create or sell a Bitcoin Ordinal NFT, users need to run a full node on the Bitcoin blockchain. However, this is not manageable for most people considering the hardware requirements. Luckily, projects like Gamma.io announced a no-code platform that makes it easier for users to create Ordinal inscriptions.
Gamma will take responsibility for inscription by tackling 4 aspects:
- Image Optimization: You can send your art or any image you’d like to inscribe as a satoshi token to Gamma and it will optimize it for you in better quality and fast processing.
- Inscription Creation: You won’t need to run a full node or go through the trouble of figuring out how inscription codes work, Gamma will handle the inscription for you. Also, the platform has live fee rate information to let customers know the cost of their inscription.
- Inscription Delivery: When an inscription is made, Gamma directly sends it to your Bitcoin taproot or ordinals-compatible address.
- Tracking and Viewing: Gamma provides a tracking tool for users to keep track of their inscription status. Users can also view and share their ordinals on the website.
Of course, Bitcoin NFTs or digital artifacts are still new and fresh out of the oven. That means we will see an influx of tools and platforms that will allow users to inscribe satoshis on the BTC blockchain. There is already the OrdinalsBot allowing users to send images to be inscribed on the blockchain for a 0.001 BTC + 10% fee.
Keep your eye on the upcoming Bitcoin Ordinals projects and let us know if you are with or against Bitcoin’s recent NFT incorporation.