Analysis of the Development and Infrastructure Status of Bitcoin Network NFTs

Recently, the NFT minting activity on the Bitcoin network has attracted widespread attention, with the community's attitude gradually shifting from initial indifference to active participation. Data shows that more than 33,000 NFT collectibles have been minted on the Bitcoin network, with a single-day minting volume reaching 12,000 on February 9.

The NFT project Bitcoin Punks, based on the Bitcoin mainnet Ordinals protocol, completed the minting of 10,000 collectibles on February 9. This project is regarded as the first to successfully upload the original Ethereum CryptoPunks to the Bitcoin blockchain. Currently, the project team is working on the collection, parsing, and verification of inscriptions, and the final JSON mapping will be written to the Ordinals protocol within 24 hours.

The minting process of Bitcoin Punks is relatively complex, requiring users to create a specific type of wallet and upload images via a full node Bot to complete the minting. The minting cost is about $25, but due to the slow payment speed of the Bitcoin network, there may be instances where multiple people make payments but only one person successfully mints.

Despite rumors that the secondary market price of Bitcoin Punks has reached over 1 Bitcoin, there are currently no transaction records, and the claim of a hundredfold increase is not true. Investors should be cautious about such unverified information.

Bitcoin Network NFT Project Overview

1. Bitcoin Rock: The first NFT project on the Bitcoin network issued based on the Ordinals protocol, with a total issuance of 100 pieces. The latest transaction price has reached 1 Bitcoin.

2. Ordinal Punks: A PFP collection with a supply of 100 pieces, the minting price is 0.01 Bitcoin. Currently, the highest transaction price has reached 9.5 Bitcoins, approximately 241,000 USD.

3. Other projects: Projects such as Bitcoin Shrooms and Shadow Hats have set up official social media accounts and websites, but have not yet started minting.

It is worth noting that some Ethereum NFT projects that have committed to cross-chain to the Bitcoin network have also attracted the attention of investors, reflecting strong market interest in Bitcoin network NFTs.

Current Status of Bitcoin Network NFT Infrastructure

The NFT-related infrastructure of the Bitcoin network is still in its early stages, and there are several major issues:

1. The minting process is complex: users need to learn how to create different types of wallets and familiarize themselves with various payment methods.

2. Full node synchronization difficulties: Participating in minting requires synchronizing with the Bitcoin network full node, which takes a long time.

3. Lack of trading tools: There is a shortage of convenient and secure trading platforms like Opensea, primarily relying on over-the-counter trading or custodial methods.

4. Increase in block space utilization: The inscriptions of the Ordinal protocol are consuming a large amount of Bitcoin block space, which may affect transaction fees.

Community Opinions

The Bitcoin community has divisions regarding the issuance of NFTs on its network. Supporters believe this will provide more financial use cases for Bitcoin, increase demand for block space, thereby raising transaction fees, which benefits miners in continuing to secure the network. Opponents argue that this deviates from the original intention of Bitcoin as a peer-to-peer cash system and may drive up transaction fees.

In any case, the introduction of the Ordinals protocol has increased the application scenarios of the Bitcoin network, attracting more users to understand and use the Bitcoin ecosystem. As the number of users increases and competition among ecosystem products rises, the relevant infrastructure is expected to gradually improve.

Investors should be aware of the risks in the current chaotic state while paying attention to the development of the Bitcoin network ecosystem, and participate cautiously in various NFT projects to avoid asset losses.