NFTs and Blockchains on Bitcoin: The Beginning of a New Trend
There has been a lot of talk lately about NFTs (non-fiat tokens), often created on platforms with smart contracts like Ethereum, but now it is also becoming possible to create NFTs on Bitcoin.
So how can you create NFTs on the Bitcoin blockchain? The answer is Stacks.
Bitcoin Blockchain and NFT
Originally, Bitcoin does not have smart contract capabilities like Ethereum or other networks, so it is not possible to directly execute the code needed to run NFTs, DeFi protocols, or decentralized apps.
This is where Stacks comes in: it is a blockchain that can run smart contracts, and all its transactions are settled in bitcoin. The ability to run smart contracts makes it possible to offer NFTs backed by the security and liquidity of bitcoin.
While the concept of NFTs backed by Bitcoin itself is not new, its expression and market conditions have changed significantly. For example, visual assets were tokenized and shared through a protocol built on Bitcoin called Counterparty.
While some early collections, such as Rare Pepes (2016), are now increasingly trading on Ethereum, new NFT collections are emerging on Stacks as demand for NFTs surges and lower cost alternatives to Ethereum are sought.
Bitcoin and the Future of NFTs
Creating NFTs on Bitcoin may seem like a novelty at first glance, but its idiosyncrasies can work in its favor. Bitcoin is the largest crypto asset in market capitalization, and its avid supporters often tend to shun all other cryptocurrencies and their networks.
Combined with Stacks’ scalable technology, these NFTs could stand out in an increasingly crowded market. At the moment, however, Stacks’ NFT scene is still small.
For example, the most traded NFT collection in the past 24 hours, Bitcoin Birds, has a total transaction value of approximately $23,100. Compare this to the $21.3 million total value of NFTs traded in the Ethereum game Axie Infinity during the same period, or the $3.8 million for the emerging avatar project CrypToadz, and the difference is obvious.
However, as Solana’s recent increase in activity shows, there is plenty of room for competing platforms to make waves.
Finally, we present Bitcoin Birds, a Stacks project developed by a 12-year-old boy, Abraham Finlay.
The project generated about $8,000 in its first minting process. ‘Our family was an early Bitcoin holder, and my father had been following the Stacks project for some time. I intend to hold bitcoin for the long term, and it’s really great to be able to have an NFT on bitcoin now,” Finlay said.
Thus, a new movement to create NFTs on the bitcoin blockchain has begun. We are very excited to see how it will develop.
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