Bitcoin Ordinals vs. NFTs: What's the Difference?

GM Guys and Gals,

In the previous edition, we talked about Yuga lab’s Bitcoin NFT collection. But some (lovely) readers tell us to explain What actually is Bitcoin NFT? Are they different from normal NFTs?

We are best friends so here we go…

Bitcoin NFTs are called Ordinals

Bitcoin Ordinals and NFTs share some similarities, but they also have some key differences. Here's what you need to know:

Similarities:

• Both are non-fungible, meaning they are unique and cannot be exchanged for something else.

• Both are associated with digital art.

Differences:

• Bitcoin Ordinals only exist on-chain and are completely immutable, meaning they cannot be changed in any way. NFTs can exist off-chain and may not be immutable.

• Ordinals can be minted directly onto the Bitcoin chain in the same way as typical BTC coins. NFTs usually require a separate minting process on a smart contract platform.

• Ordinals do not have separate metadata files, while NFTs typically do. This means that Ordinals can be more secure since there is no risk of losing the metadata file reference.

• Bitcoin Core developers are against Ordinals, while many others view them as a good thing for Bitcoin and other proof of work networks.

Controversy Surrounding Bitcoin Ordinals:

• Some believe that adding an NFT element to the blockchain goes against what Bitcoin's creator intended when the asset was launched in 2009.

• Bitcoin Core developers are against Ordinals, believing that it is not a good application for Bitcoin.

• Despite the controversy, many individuals view Ordinals as a good thing for Bitcoin and other proof of work networks, as it can give them a new lease on life and tackle limitations on their utility.

Potential for Bitcoin Ordinals:

• Bitcoin Ordinals have the potential to reduce network congestion and increase utility for Bitcoin and other proof-of-work networks.

• With its utility in the digital art space, Bitcoin could become even more popular, specifically among collectors and creators.

In summary, while Bitcoin Ordinals and NFTs share some similarities, they also have some key differences. Bitcoin Ordinals are completely immutable and can be minted directly onto the Bitcoin chain, while NFTs may not be immutable and require a separate minting process. While there is controversy surrounding Bitcoin Ordinals, they have the potential to increase utility and reduce network congestion for Bitcoin and other proof-of-work networks.

As the crypto world continues to evolve, we will keep you updated on all the latest developments. Stay tuned for more updates from Web3shala.

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That’s it for the day, Web3Shala 👋

To the Moon 🚀