Crypto is silently experiencing a seismic shift with the surge of NFT owners and developers migrating from Ethereum to Bitcoin. The move seems driven by the wave of innovation, hype, and experimentation surrounding Ordinals, a new type of NFTs native to the OG blockchain network.
At the Blockchain conference in 2023, numerous Ethereum developers showcased their protocols built on Ordinals. One notable example is Eril Ezerel, founder of Subjective Labs, who created an Ordinals explorer tracking over 1,000 Ordinals collections. Ezerel commented, “Now that it’s been discovered, people are coming back to crypto’s oldest coin en masse.”
While possibly exaggerated, Ezerel’s statement carries significant implications: this shift of prominent and valuable NFTs from Ethereum to Bitcoin suggests a transformative role reversal. Bitcoin looks poised more than ever to strengthen its grip on the number one spot for cryptocurrency, and now it is coming for Ethereum’s NFT ecosystem. The OnChainMonkey Story illustrates how this paradigm shit unravels.
The OnChainMonkey (OCM) Story
The OnChainMonkey (OCM) community, made up of investors, artists, and innovators, recently decided to move their collection of 10,000 NFTs from Ethereum to the Bitcoin blockchain. This decision was supported by an overwhelming 99% majority of NFT owners in the community, despite the migration taking several months and costing $1 million.
The OCM project was created in September 2021 when the OnChainMonkey NFT collection was first minted on the Ethereum blockchain.
The community is passionate about the potential of Web3 to generate wealth and drive real-world impact. This move to Bitcoin raises questions about the perceived value of Bitcoin-backed NFTs compared to their Ethereum counterparts.
Metagood, the company behind OCM, cited several reasons for the migration, including Bitcoin’s reputation as a more secure platform. Danny Yang, the CEO of Metagood, also hinted at the growing potential of the Bitcoin NFT ecosystem, signalling a bright future for Bitcoin NFTs.
The migration has already attracted significant attention, with crypto venture capitalist Jason Fang buying an OnChainMonkey Ordinal for $100,000 after the migration. This sale is one of the most significant sales of Bitcoin ordinals to date.
Another notable story is when Jason Williams burned his $169k Bored Ape Yacht Club (BAYC) #1626 NFT on the Ethereum network, replacing it with an ape ordinal on the Bitcoin chain. These moves highlight a growing belief among NFT owners that Bitcoin-based Ordinals hold greater value.
How Did We Get Here? Bitcoin’s Growth and Evolution into the NFT Space
Bitcoin was created in 2009 by an anonymous person or group called Satoshi Nakamoto. At first, many people didn’t believe in it and thought it was just a small experiment. However, a small group of people saw its potential as a digital currency that didn’t need a central authority to work.
Today, Bitcoin has grown into a global phenomenon with millions of users worldwide. Governments and big companies are starting to see the value of Bitcoin, too. Some countries are exploring using Bitcoin’s technology for things like payments and reserve assets. El Salvador even made Bitcoin legal tender.
Big companies like Tesla are investing in Bitcoin and accepting it as payment for their products. One of Bitcoin’s strengths is that it can adapt and change over time. It has gone through many updates to make it more secure and useful. Bitcoin Ordinals are a new development that shows how Bitcoin is still evolving.
As Ordinals gain traction, a DeFi sector is likely to emerge on the Bitcoin network, further diversifying its utility. With more participants exploring Bitcoin, Ordinals, and BRC-20 tokens, innovation and new projects are on the horizon.
Despite the challenges posed by the influx of NFTs into Bitcoin Ordinals and associated trading activities, resulting in higher transaction costs and slower network speeds, Bitcoin developers are motivated to design and implement scaling solutions to address these issues and enhance Bitcoin’s scalability.
Why Bitcoin Ordinals Are Different
Besides being built on the original blockchain, Bitcoin, Ordinals are changing the game by offering unique features that set them apart from traditional NFTs.
True Digital Artifacts
Bitcoin Ordinals are not your typical NFTs. They’ve been labelled as “true digital artifacts” because they’re directly created on the Bitcoin blockchain. Unlike many NFTs that act as contracts showing ownership and storing details in their metadata, digital artifacts live solely on the blockchain. This makes them genuinely decentralized and unchangeable, ensuring top-notch security. As a result, they hold significant value in the NFT space.
Immutable and Unchangeable
The key difference between Bitcoin Ordinals and regular NFTs lies in their immutability. Regular NFTs often use metadata, allowing creators and owners to tweak the appearance or behaviour of the NFT. Creators can even add traits or features. However, Bitcoin Ordinals take a stand. Once an ordinal is engraved onto the Bitcoin blockchain, it stays unalterable. No modifications or adjustments are allowed. This permanence adds an extra layer of security and trust that is uncommon in the NFT space.
No Royalties, No Strings Attached
Bitcoin Ordinals have a unique approach to royalties. In regular NFTs, creators usually get a percentage of the sale each time their creation changes hands, serving as ongoing compensation.
Bitcoin Ordinals operate differently. They don’t have built-in royalties for creators. This means that once a Bitcoin Ordinal is sold, the creator doesn’t receive a portion of future sales. This unique approach brings different dynamics to NFT ownership and creation within the ecosystem.
Final Thoughts
The ongoing shift from Ethereum to Bitcoin for NFTs, driven by the emergence of Bitcoin Ordinals, is just one example of how Bitcoin continues to shape the crypto landscape. It is no longer just a digital currency but a platform for innovation, a store of value, and a symbol of financial sovereignty.
Pete Rizzo explained this well in his closing thoughts during the 2023 Bitcoin conference’s The Great Ordinal Debate: “I think Bitcoin is changing, and I think it’s important to have an adaptive mental model of what Bitcoin is.”
Finally, the evolution of Bitcoin, from its original vision as a peer-to-peer electronic cash system to its current status as a thriving NFT ecosystem, is truly remarkable. With a new wave of innovation sweeping across the Bitcoin chain, the possibilities for its future are boundless.
Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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