Binance Research on How Bitcoin NFTs Are Taking the Crypto World by Storm

On Tuesday (7 February 2023), Binance Research, the research division of Binance, the largest cryptocurrency exchange by trading volume, delved into the topic of Bitcoin NFTs.

In a Twitter thread posted earlier today, BINANCE Research said that traditionally, the Bitcoin blockchain was only used for payment transactions, but recently a new protocol known as the Ordinals protocol has emerged, introducing on-chain, Bitcoin-native NFTs.

Recently, a new protocol known as ordinals protocol has emerged, introducing it to the chain, Bitcoin native nfts. In a Twitter feed posted earlier today, Binance Research reported that traditionally, the Bitcoin blockchain has been used only for payment transactions.

Casey Rodarmor, the creator of the Ordinals project, who is a former Bitcoin Core contributor, said in a blog post published on 20 January 2023 that the Ordinals protocol supports putting “inscriptions” on the Bitcoin blockchain, and then went on to explain how inscriptions are different from NFTs:

“Inscriptions are digital artifacts native to the Bitcoin blockchain. They are created by inscribing sats with content using ord, and can be viewed with the ordinals explorer. They are created by registering sats with content using ord, and can be visualized with the explorer ordinals. They don't need a separate chip, a side chain, or a bitcoin switch. Entries are created by including content, such as a picture, text, svg, or html, into a registration operation. They don't need a separate chip, a side chain, or a Bitcoin switch.

“Inscriptions are digital artifacts, and digital artifacts are NFTs, but not all NFTs are digital artifacts. As well as its contents, the registration transaction contains one type of content, It's also called mime, identify the type of content to be included... "Entries are numeric objects, and numeric artifacts, But not everyone is a digital artifact. Digital artifacts are objects that meet higher standards, more in line with their ideal. For an NFT to be a digital artifact, it must be decentralized, unchanging, chained and without restriction. Most NFT are not digital artifacts. Their content is stored off-line and can be lost, they are on central channels, and they have back door administration keys. Which is worse, because these are intelligent contracts, they have to be checked on a case-by-case basis to determine their properties. Entries are not marked with these defects. The inscriptions are fixed and chained, on the oldest, most decentralized and safest blockchain in the world. They are not smart contracts and do not need to be looked at on a case-by-case basis to determine their properties.“

Inscriptions are like TNTs.

It also mentions that while some members of the Bitcoin community have raised concerns about the Ordinals protocol potentially driving up transaction fees by consuming block space on the Bitcoin network, there is ongoing debate about whether this is a positive or negative development for the blockchain.

Ordinals use it in a manner which is not ideal for its design. Are real digital artifacts: decentralised, immutable, still on the chain, and native to Bitcoin.it also mentions that while some members of the bitcoin community have raised concerns about the ordinals protocol potentially driving up transaction fees by consuming block space on the bitcoin network, there is a debate going on as to whether it is a positive or negative development for blockchain, but the computers use it in a way that is not ideal for its purpose as parking in a designated place for ambulance vehicles, impede their access and slow down their ability to record livesthread??pic.twitter.com/dsr5tbtbgc— pledditor (@pledditor) Jan. 29, 2023a successful ecosystem of ordinals / bitcoin nfts means:– miners make more money– security budget increases– bitcoin devs become in-demand– bitcoin podcasters get new sponsors– speculators on-board to bitcoin/lightning walletsliterally everyone wins. Let's do this... udi wertheimer (@udiwertheimer) February 7, 2023how does the ordinal protocol function?