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BRC-420: A Game Changer For The NFT Market And Web3

BRC-420: A Game Changer For The NFT Market And Web3

Non-fungible tokens (NFTs) are unique digital assets that represent ownership and authenticity of various forms of content, such as art, music, games, and collectibles. NFTs have exploded in popularity in the past few years, especially on the Ethereum blockchain, where platforms like OpenSea, Rarible, and SuperRare have enabled creators and collectors to buy, sell, and trade NFTs with ease. However, Ethereum is not the only blockchain that supports NFTs. In fact, one of the oldest and most secure blockchains, Bitcoin, has also been home to a vibrant NFT ecosystem since 2018, thanks to the innovation of Bitcoin Ordinals.

Bitcoin Ordinals is a protocol that allows anyone to create and transfer NFTs on the Bitcoin blockchain, using a standard called BRC-20. BRC-20 is similar to ERC-20, the most widely used token standard on Ethereum, but with some key differences. For example, BRC-20 tokens are not smart contracts, but rather simple data structures that are embedded in Bitcoin transactions. This means that BRC-20 tokens are more lightweight, secure, and interoperable than ERC-20 tokens, as they inherit the properties and benefits of the Bitcoin network. Moreover, BRC-20 tokens can be easily integrated with existing Bitcoin wallets and services, without requiring any additional software or infrastructure.

However, BRC-20 is not without its limitations. One of the main challenges is that it does not support metadata, which is essential for NFTs. Metadata is the information that describes the attributes and characteristics of an NFT, such as its name, description, image, creator, and provenance. Without metadata, they are essentially indistinguishable from each other, and rely on external sources to provide context and meaning. This makes BRC-20 tokens less expressive, discoverable, and valuable than their Ethereum counterparts.

This is where BRC-420 comes in. BRC-420 is a new protocol that extends BRC-20 with metadata capabilities, enabling the creation of rich and diverse NFTs on Bitcoin. It was announced in September 2023, at the inaugural Ordinals Summit in Singapore, by Domo, the creator of the BRC-20 protocol. This protocol is inspired by ERC-721, the most popular NFT standard on Ethereum, but with some novel features and improvements. It consists of two parts: Metaverse Standards and Inscription Royalties.

Metaverse Standards are a set of open-source formats and specifications that define how metadata is stored and accessed. This standard supports various types of content, such as game items, multimedia, and art, and ensure that they are compatible and interoperable across different platforms and applications. It also leverage decentralized storage solutions, such as IPFS and Arweave, to ensure that metadata is persistent and censorship-resistant. This means that BRC-420 tokens are not dependent on any centralized server or authority, and can exist independently on the Bitcoin blockchain.

Inscription Royalties are a mechanism that allows creators to receive a percentage of the secondary sales of their BRC-420 tokens. They are embedded in the metadata, and are enforced by the marketplaces and platforms that support BRC-420. They are optional and customizable, meaning that creators can choose whether to enable them or not, and how much to charge. Inscription Royalties are designed to foster sustainability and reward long-term vision in the NFT space, by incentivizing creators to produce high-quality and original content, and by giving them a fair share of the value they generate.

In my humble opinion, BRC-420 is a game changer for the NFT market and Web3, as it brings the power and potential of NFTs to the Bitcoin blockchain. It combines the best of both worlds: the security, scalability, and simplicity of Bitcoin, and the expressiveness, diversity, and creativity of NFTs. It also opens up new possibilities and opportunities for creators and collectors, as well as for developers and entrepreneurs, who can build and innovate on top of BRC-420. It also enhances the user experience and adoption of NFTs, as it lowers the barriers to entry and reduces the costs and complexities associated with NFTs on other blockchains.

This is not a short-term fad, but rather a long-term vision for the future of the web. They are part of the broader movement of Web3, which aims to create a more decentralized, open, and fair internet, where users have more control and ownership over their data and content. It is aligned with the ethos and values of Web3, as it empowers users to create, share, and monetize their own NFTs, without relying on any intermediary or middleman. It is also compatible and complementary with other Web3 technologies and protocols, such as DeFi, DAOs, and DIDs, creating a rich and vibrant ecosystem of decentralized applications and services.

It is still in its early stages of development and adoption, and faces many challenges and uncertainties. For example, they need to overcome the technical and regulatory hurdles that Bitcoin faces, such as scalability, privacy, and compliance. This new protocol also needs to gain more awareness and support from the Bitcoin and NFT communities, as well as from the wider public and mainstream media. It also needs to prove its value proposition and differentiation from other NFT standards and platforms, and to demonstrate its use cases and benefits for various industries and sectors.

However, BRC-420 also has many advantages and opportunities, as it leverages the strength and reputation of Bitcoin, the most established and trusted blockchain in the world. It also benefits from the innovation and collaboration of the Ordinals Protocol, the leading project and community behind Bitcoin Ordinals. It also has the potential to attract and inspire new and existing users and creators, who are looking for a more accessible, affordable, and authentic way to participate in the NFT market and Web3.

To conclude, BRC-420 is a promising and exciting protocol that aims to revolutionize the NFT market and Web3, by bringing them to the Bitcoin blockchain. It is a win-win solution for all stakeholders involved, as it offers more freedom, choice, and value for users, creators, and developers. BRC-420 is not a hype or a bubble, but a reality and a trend, that will shape and define the future of the web. It is here to stay, and we should expect to see more developments and achievements in the coming months and years.

 

Source: https://www.benzinga.com/24/02/37076928/brc-420-a-game-changer-for-the-nft-market-and-web3

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

BRC-721E: A Bridge or a Burner for Ethereum NFTs?

BRC-721E: A Bridge or a Burner for Ethereum NFTs?

Non-fungible tokens (NFTs) are unique digital assets that represent various forms of art, collectibles, games, and more. Most of the NFT activity has been happening on the Ethereum network, which supports the ERC-721 standard for creating and trading NFTs. However, Ethereum is not the only blockchain that can host NFTs.

In fact, Bitcoin, the oldest and largest cryptocurrency, has also developed its own way of storing and transferring digital art on its network. This is done through a protocol called Ordinals, which allows users to embed data, such as images or text, onto a single satoshi, the smallest unit of Bitcoin. Ordinals are essentially the closest thing that Bitcoin has to NFTs, and they have been gaining traction in the past few months, with over 10 million inscriptions created as of May 2023.

According to book author Anndy Lian, at one point in November 2023, BRC-20 NFTs have also surpassed Ethereum NFTs in terms of sales volume, with $35,563,933 worth of transactions in the past 24 hours, compared to $12,142,132 for Ethereum NFTs.

But what if you want to move your NFTs from Ethereum to Bitcoin or vice versa? Is there a way to bridge the two networks and preserve the value and uniqueness of your digital assets? This is where BRC-721E comes in. BRC-721E is a new token standard that was introduced in May 2023 by Ordinals Market, a Bitcoin-based NFT marketplace, and Bitcoin Miladys, a Bitcoin-based derivative of the popular Miladys NFT collection on Ethereum. It claims to be a bridge between the Ethereum and Bitcoin networks, allowing users to convert their ERC-721 NFTs to BRC-721E tokens on Bitcoin. But how does it work, and what are the benefits and drawbacks of using it? In this article, we will explore the features, advantages, and challenges of BRC-721E and how it affects the NFT markets on both Ethereum and Bitcoin.

How BRC-721E works

The process of converting an ERC-721 NFT to a BRC-721E token on Bitcoin involves the following steps:

  • The user burns their ERC-721 NFT on Ethereum by sending it to a special address that has no withdrawal function. This means that the NFT is permanently destroyed and cannot be recovered. The user also specifies a Bitcoin address that will receive the BRC-721E token.
  • The user inscribes valid BRC-721E data onto a satoshi on the Bitcoin network. The data must include a reference to the Ethereum burn transaction and the Bitcoin address that matches the one specified in the previous step.
  • The BRC-721E token is created and transferred to the user’s Bitcoin address. The token will automatically appear on a custom Ordinals Market collection page with complete metadata, such as the name, description, and image of the original NFT.

The BRC-721E token is said to be immutable and verifiable, meaning that it cannot be altered or duplicated and that it can be traced back to the original NFT on Ethereum. However, there are some limitations and risks involved in using BRC-721E. First of all, the conversion is irreversible, meaning that once the user burns their ERC-721 NFT on Ethereum, they cannot get it back or send it back to Ethereum. Secondly, the metadata of the BRC-721E token is not stored on-chain but off-chain on the Ordinals Market website. This means that the token relies on a third-party service to display its full information and that it may not be compatible with other Bitcoin wallets or marketplaces. Thirdly, the user has to pay fees for both the Ethereum and Bitcoin transactions, which may be high depending on the network congestion and demand. Finally, the user has to trust that the Ordinals Market website and the BRC-721E protocol are secure and reliable and that they will not be hacked, shut down, or compromised in any way.

What are the benefits of BRC-721E?

Despite the challenges and risks, BRC-721E offers some potential benefits for users who want to migrate their NFTs from Ethereum to Bitcoin. Here are some of them:

  • BRC-721E allows users to access the growing Ordinals ecosystem on Bitcoin, which has been attracting more attention and activity in the past few months. According to CryptoSlam, a data platform for NFTs, Bitcoin ranked second in terms of NFT trading volume by network in May 2023, surpassing Solana and trailing only behind Ethereum4. Some of the popular Ordinals collections include Bitcoin Miladys, Pixel Pepes, Bitcoin Punks, and BTC DeGods.
  • BRC-721E enables users to leverage the security and stability of the Bitcoin network, which is widely regarded as the most robust and decentralized blockchain in the world. Bitcoin has a higher hash rate, a longer history, and a larger network effect than Ethereum, making it more resistant to attacks, censorship, and manipulation. By converting their NFTs to BRC-721E tokens on Bitcoin, users may feel more confident and comfortable about the safety and longevity of their digital assets.
  • BRC-721E provides users with an opportunity to diversify their NFT portfolio and exposure to different blockchain platforms. By holding both ERC-721 NFTs on Ethereum and BRC-721E tokens on Bitcoin, users can benefit from the different features, advantages, and innovations of each network. For example, Ethereum offers more functionality, interoperability, and variety for NFTs, while Bitcoin offers more simplicity, security, and scarcity for Ordinals. Users can also hedge against the volatility and uncertainty of each network by having a balanced mix of NFTs on both chains.

What are the drawbacks of BRC-721E?

On the other hand, BRC-721E also has some drawbacks and limitations that users should be aware of before using it. Here are some of them:

  • BRC-721E destroys the original NFT on Ethereum, which may result in a loss of value, utility, and community for the user. By burning their ERC-721 NFT, the user gives up ownership and access to the original asset, which may have more demand, liquidity, and functionality on the Ethereum network. For example, some NFTs on Ethereum can be used in games, platforms, or metaverses, which may not be possible or compatible with BRC-721E tokens on Bitcoin. Moreover, the user may lose the connection and interaction with the original NFT community, which may have more members, events, and updates than the Ordinals ecosystem on Bitcoin.
  • BRC-721E depends on the Ordinals Market website and the BRC-721E protocol, which may not be reliable, secure, or trustworthy. As mentioned earlier, the metadata of the BRC-721E token is not stored on-chain but off-chain on the Ordinals Market website. This means that the token is not fully decentralized or transparent and that it relies on a third-party service to display its full information. If the Ordinals Market website is hacked, shut down, or compromised in any way, the user may lose access to their BRC-721E token or its metadata. Furthermore, the BRC-721E protocol is relatively new and untested, and it may have bugs, errors, or vulnerabilities that could affect the conversion process or the token itself.
  • BRC-721E incurs fees for both the Ethereum and Bitcoin transactions, which may be high or unpredictable depending on the network conditions and demand. The user has to pay gas fees for burning their ERC-721 NFT on Ethereum and transaction fees for inscribing their BRC-721E token on Bitcoin. Both fees are determined by network congestion and market forces, and they may vary significantly over time. For example, in 2023, the average gas fee on Ethereum was around $20, while the average transaction fee on Bitcoin was around $10. These fees may add up to a significant cost for the user, especially if they want to convert multiple NFTs or if the fees increase in the future.

Summing up

In the ever-evolving landscape of NFTs, the emergence of BRC-721E poses intriguing possibilities and complexities for digital asset holders. It stands at the nexus of a pivotal choice: whether to bridge the Ethereum and Bitcoin networks or risk burning the bridge altogether.

It embodies both promise and peril, offering a conduit for migrating NFTs between Ethereum and Bitcoin yet demanding sacrifices and presenting hurdles in the process. It opens the door to the Ordinals ecosystem on Bitcoin, a realm swiftly gaining momentum in the NFT sphere, showcasing the potential for diversification and security. Yet, its mechanisms paint a canvas of irreversible actions, forcing users to bid farewell to their original ERC-721 NFTs on Ethereum, severing ties with established communities and ecosystems.

While the allure of Bitcoin’s robust network security and stability stands as a beacon, the reliance on a third-party service for metadata storage raises questions about decentralization and trust. The vulnerability to website vulnerabilities or shutdowns threatens the integrity and accessibility of BRC-721E tokens, introducing uncertainties in an already complex digital landscape.

Moreover, the financial implications of transitioning through BRC-721E cast shadows of unpredictability. High fees across both Ethereum and Bitcoin networks present a substantial financial burden, amplifying the cost of conversions and potentially deterring users from engaging in multiple transitions.

As users weigh the scales of opportunity and risk, the decision to embrace BRC-721E hinges on individual priorities. It prompts contemplation on the trade-offs between accessibility, security, and community allegiance. The quest for seamless interoperability between disparate blockchain ecosystems demands consideration of the irreversible nature of actions and the inherent risks woven into the process.

The advent of BRC-721E epitomizes the expanding frontier of blockchain innovation, offering a glimpse into the multifaceted nature of NFT migration. It beckons users to navigate a labyrinth of choices, challenging preconceptions and inviting exploration into the boundaries of digital ownership.

In this intricate dance between Ethereum and Bitcoin, BRC-721E casts a spotlight on the juncture where innovation meets consequence. Its significance lies not only in its technical prowess but in the philosophical conundrum it presents—a choice between preserving the familiarity of one’s digital assets or embarking on a new frontier, lured by the promises and uncertainties it holds. As the NFT narrative continues to unfold, the saga of BRC-721E will stand as a testament to the nuanced decisions inherent in the evolution of digital ownership and blockchain interconnectivity.

 

Source: https://hackernoon.com/brc-721e-a-bridge-or-a-burner-for-ethereum-nfts

FAQ:

What is BRC-721E, and how does it facilitate NFT migration between Ethereum and Bitcoin?

Anndy Lian explains that BRC-721E is a token standard introduced by Ordinals Market to enable the transfer of ERC-721 NFTs from Ethereum to Bitcoin. It involves burning the original NFT on Ethereum and inscribing data onto a satoshi on the Bitcoin network, resulting in the creation of a BRC-721E token that represents the original NFT.

What are the advantages of using BRC-721E for migrating NFTs?

BRC-721E provides access to the growing Ordinals ecosystem on Bitcoin, offering diversification and potential exposure to a network gaining traction in NFT trading. It leverages Bitcoin's security and stability, enhancing confidence in asset safety. Additionally, Anndy Lian mentioned that it allows users to diversify their NFT portfolio across different blockchains.

Who is Anndy Lian?

Anndy Lian is an intergovernmental blockchain expert. He gives talks and advisory to governments and government linked enterprises.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Why Are BRC-20 NFTs Suddenly Soaring in Value?

Why Are BRC-20 NFTs Suddenly Soaring in Value?

Non-fungible tokens (NFTs) are unique digital assets that represent various forms of art, collectibles, games, music, and more, and have been one of the hottest trends in the crypto space in 2023, attracting millions of dollars in sales and generating a lot of buzz and excitement among creators and collectors.

However, not all NFTs are created equal. There are different standards and platforms that enable the creation and trading of NFTs, each with its own advantages and disadvantages. One of the most popular and widely used standards is ERC-20, based on the Ethereum blockchain. ERC-20 NFTs have been dominating the market for a long time, thanks to the network effects, liquidity, and diversity of the Ethereum ecosystem.

But there is a new challenger in town: BRC-20. BRC-20 is an experimental token standard that enables the minting and transferring of fungible tokens via the Ordinals protocol on the Bitcoin (BTC) blockchain. Taking a cue from Ethereum’s ERC-20 tokens, BRC-20 tokens feature different mechanisms and functions, such as proof-of-history, proof-of-stake, and optional royalty. BRC-20 tokens are also compatible with the Bitcoin network, which means they can leverage the security, decentralization, and immutability of the most established and valuable cryptocurrency.

BRC-20 NFTs have been gaining a lot of traction and popularity in 2023, especially among Bitcoin enthusiasts and supporters. According to Coingecko, the TRAC (Ordinals) market cap has soared by around 230% over the last seven days to a $67 million market cap.

BRC-20s Beginning to Outpace Ethereum NFTs

BRC-20 NFTs have also surpassed Ethereum NFTs in terms of sales volume, with $35,563,933 worth of transactions in the past 24 hours, compared to $12,142,132 for Ethereum NFTs. Solana, another contender in the NFT space, is lagging with only $1,990,810 in sales volume.

Compared to when I first talked about it last year, and again this year, the difference is huge. So, what is driving this surge in BRC-20 NFTs? Several factors contribute to this phenomenon, such as:

  • Innovation and experimentation: BRC-20 NFTs are pushing the boundaries of what is possible with NFTs, introducing new features and functionalities that appeal to both creators and collectors. For example, they can have optional royalty, which means that the original creator can receive a percentage of the future sales of their NFTs, creating a passive income stream and incentivizing quality and originality. They can also have stake-weighted transaction processing, which means that the more stake a user has in the network, the faster and cheaper their transactions will be, creating a more efficient and fair system.BRC-20 NFTs can also have fee-based execution priority, meaning users can pay higher fees to confirm their transactions faster, creating a more flexible and dynamic market.
  • Scalability and performance: BRC-20 NFTs are designed to overcome the scalability and performance issues that plague Ethereum NFTs, such as high gas fees, slow transaction speed, and network congestion. Their NFTs use the proof-of-history mechanism, which allows the network to achieve a high throughput of transactions without compromising security or decentralization. Proof-of-history encodes time as data on the blockchain, creating a verifiable and chronological record of events. This eliminates the need for complex and costly consensus algorithms, such as proof-of-work or proof-of-stake, and enables the network to process thousands of transactions per second with low latency and low cost.
  • Diversity and creativity: BRC-20 NFTs are attracting a diverse and creative community of artists, developers, and collectors who are exploring new possibilities and opportunities with NFTs. They are not limited to digital art but can also represent various forms of media, such as music, videos, podcasts, games, and more. They can also be integrated with other platforms and applications, such as social media, e-commerce, gaming, and more, creating new use cases and experiences for NFTs. BRC-20 NFTs can also be combined with other NFTs, creating complex and rich digital assets with multiple layers and dimensions.
  • Strong community and builders: The Bitcoin community and builders are very strong and dedicated to improving the network and creating more user value. BRC-20 NFTs are one of the results of their hard work and vision. They have been working on the Ordinals protocol and the BRC-20 token standard for years before they launched them in early 2023. Since then, they have been attracting more and more creators and collectors to join the BRC-20 NFT space, creating a vibrant and diverse ecosystem.BRC-20 NFTs are not only a way of expressing and owning digital art but also a way of supporting and participating in the Bitcoin network and are a testament to the innovation and creativity of the Bitcoin community and builders.

Some of the most popular and successful BRC-20 NFT projects in 2023 include:

  • ORDI: ORDI is a collection of 20,000 unique and generative NFTs representing the ordinal numbers from 1 to 20,000. ORDI is a minimalist and elegant project that celebrates the beauty and simplicity of numbers. ORDI also has a social and charitable aspect, where each NFT holder can choose a social media handle to display on their NFT, and a portion of the sales proceeds are donated to various charities. ORDI is currently the largest BRC-20 NFT project by total sales, with over $208 million and over 2,440 transactions.
  • $RATS: RATS is a collection of 461,194 unique and generative NFTs representing different types of rats. They are one of the most popular and successful BRC-20 NFT projects in 2023. $RATS BRC-20 NFTs are not only collectibles but also playable characters in a metaverse game that is being developed by the team. The NFTs have different attributes, such as color, size, fur, eyes, ears, tail, and accessories, affecting their game performance and value. They also have a royalty system, creating a passive income stream and incentivizing quality and originality.

 

The Bottom Line

BRC-20 NFTs are soaring because they offer a new and exciting way of creating and collecting digital assets on the Bitcoin blockchain. They are innovative, scalable, diverse, and creative, with a loyal and passionate community behind them.

BRC-20 NFTs are not a fad but a force to be reckoned with in the NFT space — and they are only just getting started.

 

 

 

Source: https://www.techopedia.com/why-are-brc-20-nfts-suddenly-soaring-in-value

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j