The rise of NFT projects on the Bitcoin network, with infrastructure still needing improvement

Recently, the NFT minting and issuance on the Bitcoin network has attracted widespread attention, and the community's attitude has gradually shifted from initial indifference to active participation. Data shows that there are currently 33,517 NFT collectibles minted on the Bitcoin network, with a single-day minting volume reaching as high as 12,102 on February 9.

Among them, the NFT project Bitcoin Punks, based on the Bitcoin mainnet Ordinals protocol, completed the minting of 10,000 collectibles on February 9. The project team is currently collecting and analyzing existing inscriptions and verifying the first upload nodes of each Punk, with the final JSON mapping write-in of the 10,000 collectibles collection expected to be completed within 24 hours.

Bitcoin Punks is considered the first project to successfully upload the original Ethereum CryptoPunks to the Bitcoin blockchain. The project team is verifying the consistency of the uploaded image hashes on Ordinals with the original Punk images one by one. The link pointing to Bitcoin Punks is the first inscribed (minimum ID) and contains the corresponding hash value on the Ordinals protocol.

The minting process of Bitcoin Punks is relatively complex, requiring users to create different types of wallets and complete the minting through specific steps. The minting cost is about $25, and there is currently no OTC trading. Due to the slower payment speed of the Bitcoin network, it is possible for multiple users to successfully pay, but only the earliest confirmed transaction can obtain Punks, resulting in some users losing fees without obtaining the collectibles.

Although there are rumors that the secondary market price of Bitcoin Punks has reached over 1 Bitcoin, in reality, there are currently no transaction records, and the claim of a hundredfold increase is not true. Investors need to carefully distinguish information to avoid being misled and suffering losses.

Current Development Status of Bitcoin Network NFTs

Since the release of the Ordinals protocol version 0.4.0 on January 21, 2023, NFT projects on the Bitcoin network have been continuously emerging. The Ordinals protocol supports the creation of "digital artifacts" on the Bitcoin mainnet, including images, PDFs, videos, and audio. According to data statistics, Ordinals NFTs have shown explosive growth since February, primarily consisting of image content.

Currently, several NFT projects have been launched on the Bitcoin network:

1. Bitcoin Rock: The first Bitcoin network NFT project issued based on the Ordinals protocol, with a total issuance of 100. It is reported that its current transaction price has reached 1 Bitcoin.

2. Ordinal Punks: PFP collectibles minted among the first 650 inscriptions on Bitcoin, with a total issuance of 100. The minting price is 0.01 Bitcoin, and the current highest transaction price has reached 9.5 Bitcoin (approximately $241,000).

3. Other projects: such as Bitcoin Shrooms and Shadow Hats, have currently established official social media accounts and websites, but minting has not yet started.

It is worth noting that some NFT projects issued on the Ethereum network but promising to cross-chain to the Bitcoin network have also attracted attention. For example, the On the Edge of Oblivion project rose from 0 to 2.4 ETH, with an issuance of 555 pieces, and the current transaction volume has reached 1000 ETH, reflecting the market's enthusiastic anticipation for NFTs on the Bitcoin network.

Current Status of Bitcoin Network NFT Infrastructure

The infrastructure related to NFTs on the Bitcoin network is still in its early stages and has many inconveniences compared to the Ethereum network:

1. The minting process is complicated: it requires learning to create different types of wallets, distinguishing between different payment methods, and synchronizing with the full nodes of the Bitcoin network.

2. Lack of trading tools: There is no convenient and secure trading platform similar to Opensea, mainly relying on shared spreadsheets and over-the-counter trading, which poses a fraud risk.

3. Full node synchronization takes a long time: personal synchronization of the Bitcoin network full node requires a lot of time, and currently mainly relies on full node Bots developed by community members.

4. Imperfect minting mechanism: The current minting uses an order number model, and users cannot confirm in real-time whether the inscription has been successfully on-chain, which may lead to duplicate payment issues.

The launch of the Ordinals protocol has also sparked controversy within the Bitcoin community. Supporters argue that it will provide more financial use cases for Bitcoin, driving up demand for block space and increasing transaction fees, which is beneficial for miners to continue protecting the network. Opponents believe that this deviates from Bitcoin's original intention as a peer-to-peer cash system and may lead to higher transaction fees.

Despite the controversy, the emergence of the Ordinals protocol and related NFT projects has undoubtedly increased the application scenarios of the Bitcoin network, attracting more users to understand and use the Bitcoin ecosystem. With the increase in users and competition among ecosystem products, the infrastructure related to Bitcoin network NFTs is expected to gradually improve.

For investors, NFT projects on the Bitcoin network are still in the early stages, with opportunities and risks coexisting. When participating in related projects, it is essential to maintain a cautious attitude and conduct in-depth research on the project background to avoid potential asset losses.