In recent times, the world has witnessed an increase in the popularity of NFTs and the new possibilities they bring. While Ethereum has traditionally been the go-to platform for NFTs, the rise of Bitcoin NFTs has created quite a stir in the NFT and crypto community. A unique digital collection built on the Bitcoin blockchain is Ordinal Punks. The collection comprises 100 unique profile pictures (PFPs) that are minted within the first 650 signups and are fully integrated into the Bitcoin blockchain. While they have become highly sought after digital assets in the NFT space, there is some debate as to whether or not Ordinal Punks are true NFTs.
In this guide, we’ll explain everything you want to know about Ordinal Punks, Bitcoin NFT, and the controversy surrounding the collection.
What are Bitcoin NFTs?
First of all, let’s take a look at what Bitcoin NFTs really are. In essence, Bitcoin NFTs are unique digital assets on the Bitcoin blockchain. Like other blockchain networks, the Bitcoin blockchain is a secure, decentralized network that records transactions. Casey Rodarmor, a software engineer, added the Ordinals protocol to the Bitcoin blockchain. Notably, this protocol allows users and developers to add ordinals to each of the 100,000,000 units that make up a Bitcoin. ‘Sats’ or ‘satoshis’ is the common term for these units. Additionally, this data may include smart contracts, which enable the creation of NFTs on the blockchain. Essentially, the Ordinals protocol provides a way for creators to build NFTs on the Bitcoin blockchain.
What are Ordinal Punks NFTs?
Basically, the Ordinal Punks are a collection of Bitcoin NFTs. In particular, this collection pays homage to CryptoPunks, a collection of NFTs on the Ethereum blockchain. Each Ordinal Punk NFT is a unique digital work of art. The collection comprises 100 unique PFPs (profile images) that are minted within the first 650 signups and are fully integrated into the Bitcoin blockchain. But what exactly is an inscription? Essentially, inscriptions are digital artifacts, such as an image or text, created in the protocol.
How were ordinal punks created?
Ordinal Punks is a unique digital collection created using the Ordinals protocol. The collection is made within the first 650 signups on the Bitcoin blockchain and was created by the pseudonymous creator of Web3, FlowStay. Furthermore, each NFT is generated through an algorithmic process. This process uses a number of factors and results in a unique combination of colours, shapes and patterns. Additionally, the use of Bitcoin Ordinals provides each NFT with a permanent and verifiable identity on the Bitcoin blockchain, making it easy to track and authenticate. Bitcoin’s Segregated Witness, commonly known as SegWit, and the Taproot upgrade made it possible to store NFT data on-chain. Significantly, this allows for unlimited transaction sizes. To buy, sell, or trade an Ordinal Punk, users must run a full node on the Bitcoin blockchain. This means that to do this, you would need to be an expert in cryptography!
How much are ordinal punks worth?
Ordinal Punks NFTs have become highly sought after digital assets in the NFT space. They are priced at about $100,000, but one NFT, Punk 94, sold for $214,000 or 9.5 BTC. Surprisingly, an NFT collector traded an original CryptoPunk for an Ordinal Punk, causing a stir in the NFT space. Since CryptoPunks is often referred to as the first project in NFT history, many questioned whether the trade was a wise decision, despite the fact that the value of both projects was roughly the same at the time of the trade.
How are ordinal punks valued?
Ordinal punks are valued based on several factors, including their rarity, uniqueness, historical significance, and collector demand. The market determines the price of an Ordinal Punk NFT, with some selling for hundreds of thousands of dollars. Additionally, the fact that Ordinal Punks are created using Bitcoin’s blockchain technology and have a permanent, verifiable identity also adds to their value. The value of an Ordinal Punk is likely to fluctuate over time, based on market demand and other factors.
So are Ordinal Punks NFT or not?
Casey Rodarmor, the creator of Ordinals, had this to say on a blog post. “Inscriptions are digital artifacts and digital artifacts are NFTs, but not all NFTs are digital artifacts. Digital artifacts are NFTs held to a higher standard, closer to their ideal.”
NFT enthusiasts, however, have a different opinion. Some argue that Ordinal Punks are not true NFTs because they lack programmability, limiting their potential uses. Negotiating the collection is also complex. Because Bitcoin NFTs are still in their early stages, there is no infrastructure or markets available to support it. Instead, users buy the digital artifacts peer-to-peer over the counter via the Ordinal Punks Discord.
In general, the concept of Bitcoin NFT has caused a stir within the Web3 community. Bitcoin maximalists often reject the idea of using Bitcoin for anything other than financial transactions, such as creating NFTs. They believe that NFTs and other non-financial use cases for Bitcoin are not valuable and distract from Bitcoin’s primary purpose as a decentralized currency. However, some members of the Bitcoin community see the emergence of Bitcoin-based NFTs as a positive development. On the contrary, they believe that Bitcoin NFTs can attract more attention, use cases, and drive further development on the Bitcoin blockchain. The popularity of the Ordinal Protocol and the high prices of Ordinal Punk NFTs have sparked a debate within the Bitcoin community about the value of Bitcoin NFTs and their potential for the future of the blockchain.
The future of ordinal punks
It is difficult to predict the exact future of the NFT collection. This is because it depends on several factors, including the general demand for NFT and the adoption of the Ordinal Protocol. However, some enthusiasts believe that Ordinal Punks could become very valuable digital assets. This is due to its scarcity and unique identity on the Bitcoin blockchain. Also, as more people become interested in NFTs and the underlying blockchain technology, the demand for Ordinal Punks may increase. Overall, the future of the project will likely be determined by the continued evolution of the NFT space and the broader adoption of blockchain technology.
All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, do your own research before making any type of investment.
