April 19, 2024
Bitcoin Ordinals Gain Momentum as a Secure NFT Solution Following Musk's Comments
Bitcoin News

Bitcoin Ordinals Gain Momentum as a Secure NFT Solution Following Musk’s Comments

In an unexpected turn of events, Tesla CEO Elon Musk’s recent public mockery of nonfungible tokens (NFTs) has inadvertently drawn attention to the case of Bitcoin Ordinals, also known as Bitcoin NFTs. During a podcast interview on The Joe Rogan Experience, Musk commented on the nature of NFTs, stating, “The funny thing is the NFT is not even on the blockchain — it’s just a URL to the JPEG.”

Musk went on to suggest that NFT projects should consider encoding the JPEG directly on the blockchain. He reasoned, “You should at least encode the JPEG in the blockchain. If the company housing the image goes out of business, you don’t have the image anymore.”

This commentary by Musk has sparked a conversation in the cryptocurrency community, particularly among Bitcoin enthusiasts, who argue that his remarks unintentionally underline the utility and purpose of Bitcoin Ordinals. Bitcoin Ordinals, a concept introduced by developer Casey Rodarmor in January, was made possible by the Taproot soft fork in November 2021.

Cryptocurrency analyst Will Clemente noted that there are now 38 million and counting Ordinals inscriptions on Bitcoin’s blockchain, demonstrating their increasing popularity and adoption.

“This is why Ordinals will continue to grow,” said Rohun “Frank” Vora, the creator of NFT projects DeGods and y00ts. “It’s the most elegant solution to one of the most universal criticisms of NFTs.”

A developer known as “Leonidas” was so inspired by Musk’s comments that they inscribed a 19-second video into Bitcoin’s blockchain at block 814,773, further showcasing the potential of Bitcoin Ordinals.

Elon Musk’s scepticism towards NFTs is not new; he previously mocked them in a meme in December 2021, characterizing them as a sign of mental illness. However, it’s essential to note that Musk’s comments may not apply universally to all NFT projects, particularly those on the Ethereum blockchain.

For instance, Larva Labs, the creators of the iconic CryptoPunks NFTs, moved their NFTs on-chain in August 2021 after four years of living off-chain. This move was intended to ensure the long-term preservation of the CryptoPunks images and attributes.

Metagood, the team behind Ethereum-native OnChainMonkeys, also announced their plans to migrate their NFTs to Bitcoin. While not explicitly addressing the JPEG dilemma, the CEO, Danny Yang, emphasized that NFTs would “win on Bitcoin” because it offers a more secure network for their operation. He stated, “The Bitcoin Ordinal protocol is better designed for decentralization and security than the Ethereum NFT protocol. High-value NFTs will win on Bitcoin.”

Despite the growing interest in Bitcoin Ordinals, Ethereum remains the dominant platform for NFT trading, with 84% of all NFT trading volumes, according to data from CoinGecko. Bitcoin and ImmutableX hold the second and third positions, with market shares of 11% and 2.5%, respectively.

The cryptocurrency community continues to witness a dynamic and evolving landscape, with ongoing debates about the future of NFTs and their place within different blockchain ecosystems. Elon Musk’s inadvertent spotlight on Bitcoin Ordinals adds another layer to this ongoing conversation.

Image: Wallpapers.com

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