Launch of BRC-721E
A new token standard “BRC-721E” was launched on the 29th, which makes it possible to transfer NFTs (non-fungible tokens) distributed on Ethereum to the Bitcoin blockchain. This new feature marks a significant milestone for Ordinals as it pushes forward NFT implementations on Bitcoin.
BRC-721E has the ability to burn NFTs (ERC-721 standard) on Ethereum and reconstruct them on the Bitcoin network while preserving their properties. This is a step towards bridging NFTs from other chains to the Bitcoin world.
A special token bridge protocol “Bridge any NFT to Ordinals” for that purpose is also provided at the same time. Using this protocol, Ethereum NFT holders will be able to burn their tokens and write that information into Satoshi, the smallest unit on the Bitcoin network. Once this writing (inscription) is completed, each token will automatically be posted on the collection page of the BTC NFT market “Ordinal Market”.
The appeal of NFTs is their uniqueness, but their characteristics are determined by information called metadata. Metadata is stored on the blockchain, which ensures that each token is unique. For example, in the case of a digital art NFT, this would be the author, creation date, and details of the work (color, shape, size, etc.).
In BRC-721E, not all metadata is stored on the blockchain. For example, large amounts of data such as high-quality images and videos are stored in distributed storage such as IPFS (InterPlanetary File System).
BRC-721E was jointly launched with Ordinals Market based on Ordinals, NFT collection “Bitcoin Miladys” and Bitcoin wallet Xverse.
The standard is expected to continue evolving to handle more diverse metadata. This means addressing areas that require more detailed or complex metadata such as game assets and artwork. We are also considering upgrades such as cooperation with different blockchains (multi-chain support) and reduction of the size of data stored on the blockchain.
What are NFTs?
Abbreviation for “Non-Fungible Token”, a digital token that cannot be replaced and has a unique value. Ethereum allows developers to easily create NFTs by adopting ERC-721.
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Ordinals is a protocol designed by former Bitcoin Core contributor Casey Rodarmor that assigns a unique number to Satoshi, the smallest unit of Bitcoin, and stores certain information (e.g. images, videos, text format) in Satoshi. and enable their tracking.
Since its introduction in January 2023, Ordinals has created 10.3 million (at the time of writing), up from 3 million in early May, according to data from Dune Analytics. According to CryptoSlam’s data platform, Bitcoin jumped to second place last week in terms of NFT trading volume per network.
At the end of May, transactions waiting in menpools (unconfirmed transaction pools) rose again and network fees surged to ensure priority. As of May 29, Bitcoin transaction fees are at their highest level since April 2021, according to The Block.
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