The world of non-fungible tokens (NFTs) has been gaining significant attention in recent years, with the global NFT market expected to grow to $25 billion by 2025. NFTs are digital assets that represent ownership of unique items such as digital art, music, and video game items. The rise of NFTs has led to the development of various protocols and blockchains for creating, buying, and selling them.

One such protocol is the Ordinals Protocol, which has recently made headlines after reaching a significant milestone. According to Dune Analytics, the cumulative number of inscriptions on the Ordinals Protocol has exceeded 500,000, with transaction fees exceeding 100 BTC (about $2.74 million) in March 2023. This is a remarkable achievement for the protocol, which was launched in 2019 with the goal of creating a new type of transaction that could encode arbitrary data, including metadata, into the Bitcoin blockchain.

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Unlike Ethereum NFTs that require off-chain data on IPFS, Ordinals Protocol allows for all data to be written directly to the blockchain, resulting in perfect NFTs. This makes the Ordinals Protocol unique among other NFT issuance protocols, which typically use the expression “minting” when issuing NFTs, while Ordinals Protocol refers to it as “inscription.” An inscription is data inscribed in Bitcoin, including smart contracts, and is a combination of media files such as JPEG of images and text.

The success of the Ordinals Protocol has sparked debates within the Bitcoin community. Critics argue that the use of the Bitcoin blockchain should be limited to financial transactions and that storing NFT data on it undermines the original mission of Bitcoin, which was to enable peer-to-peer financial transactions without banks or third parties.

There are also concerns about the energy consumption of Bitcoin’s proof-of-work and its limited storage capacity. The maximum storage space for Bitcoin data is 4 megabytes, and the larger the storage capacity, the faster one block is consumed. Transaction fees increase with more transactions on the network, resulting in slow transfer speeds and significant gas costs that are inconsistent with NFTs.

However, supporters of the Ordinals Protocol believe that it will lead to a cultural change and technical improvement in the NFT space. According to a report by Galaxy Digital, the Bitcoin-based NFT market is expected to grow to $4.5 billion by 2025, and the profitability of miners can be strengthened if transaction fees increase with various transactions, including NFT inscriptions. Increased demand for Bitcoin blocks will increase the scarcity of Ordinals Protocol and users will be willing to pay more fees.

Furthermore, the use of the Ordinals Protocol can help secure the liquidity of Ethereum-based NFT markets such as OpenSea. Users can take care of the security of proven assets with Bitcoin, Dapps, and layer 2 protocols running on the Ethereum virtual machine. The inscription market is expected to grow through marketplaces such as Gamma, and layer 2 protocols such as Stacks using Bitcoin will emerge outside the realm of existing financial transactions.

In conclusion, the Ordinals Protocol’s success highlights the potential for Bitcoin to expand beyond its traditional use in financial transactions and into the NFT space. As the market for NFTs continues to grow, it will be interesting to see how Bitcoin and other blockchains continue to evolve to meet the demands of users and developers alike. While there are criticisms and concerns surrounding the use of Bitcoin for NFT inscriptions, the Ordinals Protocol’s growing popularity suggests that it may play a significant role in the future of NFTs.

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This article was republished from azcoinnews.com

Magic Eden, the non-fungible token (NFT) marketplace, announced on Monday the launch of its Bitcoin marketplace, offering its familiar user experience and the first audited, secure marketplace for Ordinals.

The move is part of Magic Eden’s multichain journey, as the marketplace has already built marketplaces on Solana and Polygon and is planning a more concerted entry into Ethereum.

The decision to support Bitcoin is driven by several key factors, including getting back to the roots of the blockchain and exploring emerging markets, delivering the best marketplace experience on chain, partnering with wallets Hiro and Xverse to bring a familiar wallet transaction experience onto the marketplace, and supporting the Bitcoin culture of trust, security, and decentralization.

The marketplace was built within a month, culminating in a hackathon in California with over a dozen developers. Magic Eden aims to empower creators and collectors by providing them with the tools and infrastructure they need to succeed. The marketplace challenges the status quo and showcases Magic Eden’s ability to overcome technical barriers, providing an intuitive and familiar interface for users to buy, sell, list, and bid on collectibles.

While launching with a secondary collectibles platform, Magic Eden has already received enormous demand to provide a Launchpad to deliver inscription services directly to creators. The marketplace is actively looking into the development of an on-chain, permissionless royalty standard and is committed to working with creators and the greater community.

The move to support Bitcoin aligns with Magic Eden’s mission to promote the benefits of collectibles and blockchain technology while remaining true to the principles that underpin the technology. To help push the ordinal ecosystem forward, Magic Eden plans to open source key pieces of its marketplace infrastructure in the near future. The marketplace wants to do its part and share the discoveries it has made to help this space flourish.

Overall, Magic Eden’s decision to launch its Bitcoin marketplace shows its commitment to innovation and its ability to adapt to emerging markets. The marketplace is not only expanding its reach but also contributing to the growth of the ordinal ecosystem by providing a secure and audited marketplace for collectibles. As the first major marketplace on Bitcoin, Magic Eden is paving the way for others to follow and continues to be at the forefront of the NFT marketplace industry.

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What is TwelveFold?

TwelveFold is a collection of 300 limited-edition NFT artworks created through the Ordinals protocol on the Bitcoin network. This is the first collection that the industry giant Yuga Labs has tested on the Bitcoin network, with each piece being a modern 3D graphics and hand-drawn artwork stored on a satoshi.

These pieces represent a complete art project with no connection to any of Yuga Labs’ previous or ongoing projects on Ethereum. The mechanism for creating TwelveFold NFTs on Bitcoin involves attaching images and characters to satoshis, which are the smallest unit of Bitcoin. You can refer to the process of creating Bitcoin NFTs through the Ordinals protocol here.

Idea

The idea behind TwelveFold came from the creative director of Yuga Labs, Michael Figgie, who wanted to create an Ordinal NFT collection that combined elements of time, mathematical logic, and blockchain technology.

The TwelveFold collection includes 300 engravings with unique patterns on each line, thanks to the application of the Ordinal protocol’s algorithm. Each series in this collection has its own theme and includes 12 unique pieces that make up a 12×12 grid. The cycle of the TwelveFold collection runs through four seasons: spring, summer, fall, and winter, symbolizing the four different color palettes of Bitcoin’s four-year cycle. Figge has created pieces based on the corresponding dominant color schemes of each season in the year.

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Unlike previous NFT collections, TwelveFold’s artworks are designed by Yuga Labs using modern and high-tech specifications. As a result, the value of each piece is significantly increased due to the details in the design, and the number of pieces is limited to 288. 

Revenue

Revenue from TwelveFold will be transferred to the ecosystem’s common fund since Yuga Labs is the entity responsible for issuing the collection. However, Yuga Labs has not yet disclosed any revenue details about TwelveFold, except for the $16.5 million earned from the auction on March 6th.

Token

At present, Yuga Labs has not announced whether TwelveFold will issue tokens, but it is possible that the project will operate similarly to the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) with the governance token ApeCoin (APE).

Road Map

There is currently no specific information on the development roadmap for TwelveFold. Investors can refer to Yuga Labs’ Twitter or the official TwelveFold website for more information.

Team

In addition to the aforementioned creative director Michael Figgie, TwelveFold was also built by two lead developers and a team of designers and blockchain experts. This team’s focus is on creating unique, high-quality artwork that leverages the power of blockchain technology and provides a valuable investment opportunity for collectors.

Investors

TwelveFold attracted funds from investors through a 24-hour auction held from March 5th, 2023 to March 6th, 2023. A total of 3,246 people participated, with the highest recorded bid being 7.1159 BTC (equivalent to $160,000) and the lowest bid being 2.2501 BTC. The total value of the auction reached 735.7 Bitcoin from 288 people, equivalent to $16.5 million.

Conclusion

Yuga Labs is one of the leading companies in the NFT market, and the success of the TwelveFold auction only further solidifies their position in this field. With the initial plan to experiment with optimizing an NFT project on the Bitcoin network, Yuga Labs also succeeded with TwelveFold, bringing in $16.5 million, although it was not as high as previous collections.

However, the Bitcoin NFT market is still very new, and Yuga Labs has received some mixed opinions from the somewhat flawed TwelveFold auction. With the ambition to lead the market, Yuga Labs needs to research and implement more carefully with NFT collections on the Bitcoin blockchain in the future.

#BitcoinNFT #YugaLabs #TwelveFold #NFT #azcoinnews

This article was republished from azcoinnews.com