The Rise of Bitcoin NFT Projects: The Ordinals Protocol Sparks a New Craze

Recently, the NFT minting and issuance on the Bitcoin network has attracted widespread attention, with the community's attitude gradually shifting 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 working on inscription collection, parsing, and verification, and the final JSON mapping will be written into the Ordinals protocol within 24 hours.

Bitcoin Punks claims to be the first project to successfully upload the original Ethereum CryptoPunks to the Bitcoin blockchain. To ensure authenticity, the team is verifying the hash values of the uploaded images against the original Punk images one by one. The minting process involves multiple steps, including creating a specific type of wallet, selecting unminted Punks numbers, uploading images, and so on.

However, due to the slow payment speed of the Bitcoin network, there may be situations where multiple people try to pay at the same time but only one successfully mints, causing some users to lose fees without obtaining the collectible. Rumors about the secondary market prices of Bitcoin Punks should also be taken with caution, as there are currently no actual transaction records.

Current Status of NFT Development on the Bitcoin Network

In January 2023, software engineer Casey Rodarmor released version 0.4.0 of the Ordinals protocol, officially introducing NFTs to the Bitcoin mainnet. The protocol supports the creation of "digital artifacts" on the Bitcoin network, including images, PDFs, videos, and audio. Since its launch, Ordinals-based NFT projects have rapidly grown, primarily focusing on image-based content.

Several notable projects include:

1. Bitcoin Rock: The first NFT project on the Bitcoin network based on the Ordinals protocol, with a total issuance of 100.

2. Ordinal Punks: PFP collectibles minted among the first 650 inscriptions on Bitcoin, with a total issuance of 100 pieces. The minting price increased from 0.01 BTC to a peak transaction price of 9.5 BTC.

3. Bitcoin Shrooms and Shadow Hats: These projects have opened official accounts and websites, but have not started minting yet.

In addition, some Ethereum NFT projects that promise to cross-chain to the Bitcoin network have also garnered attention, reflecting the market's enthusiasm for Bitcoin network NFTs.

Current Status of Bitcoin Network NFT Infrastructure

The infrastructure related to Bitcoin network NFTs is still in its early stages, with relatively complex minting and trading processes. Users need to learn how to create different types of wallets, understand various payment methods, and synchronize with Bitcoin full nodes to participate in minting. Currently, there is a lack of mature trading platforms similar to those in the Ethereum ecosystem, with most relying on over-the-counter trading or custodial services.

The full node Bot developed by community members has simplified the minting process to some extent, but issues such as double spending still exist. With the launch of the Ordinals protocol, the block space utilization of the Bitcoin network has significantly increased, sparking discussions in the community about the direction of network development.

Supporters believe that the introduction of NFTs will increase the use cases for Bitcoin, raise transaction fees, and benefit miners in maintaining network security in the long term. Opponents, however, worry that this may deviate from Bitcoin's original intent as a peer-to-peer cash system and could lead to higher transaction fees.

In any case, the emergence of the Ordinals protocol and NFTs has indeed brought new application scenarios to the Bitcoin network, attracting more users to understand and use the Bitcoin ecosystem. As the number of users increases and competition among ecological products grows, the relevant infrastructure is expected to gradually improve.

However, investors need to be aware that the current NFT projects on the Bitcoin network are still in an early chaotic state, with high risks. When looking for investment opportunities, it is essential to act cautiously and conduct thorough research to avoid asset losses.