Analysis of the Development and Infrastructure Status of Bitcoin Network NFT Projects

Recently, the NFT minting activities on the Bitcoin network have attracted widespread attention, with the community's attitude gradually shifting from initial indifference to active participation. Data shows that there are currently 33,517 NFT collectibles minted on the Bitcoin network, with a single-day minting volume reaching 12,102 on February 9.

The NFT project Bitcoin Punks, based on the Bitcoin mainnet Ordinals protocol, completed the minting of 10,000 collectibles at 3 PM on February 9th. The project team is currently collecting, analyzing, and verifying inscriptions, and it is expected to complete the final JSON mapping write-in within 24 hours.

Bitcoin Punks is considered the first project to successfully migrate the original Ethereum CryptoPunks to the Bitcoin blockchain. The project team is comparing the hash values of each image uploaded to Ordinals with the original Punk images to ensure authenticity and uniqueness.

The process of minting Bitcoin Punks is relatively complex, requiring users to create a specific type of wallet and upload images through a full node Bot. The minting cost is around $25, but due to the slower payment speed of the Bitcoin network, it is possible for multiple people to pay while only one successfully obtains the collectible.

Despite rumors claiming 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 lacks basis. Investors should be cautious about such unverified information.

Overview of the Bitcoin Network NFT Ecosystem

In January 2023, the release of version 0.4.0 of the Ordinals protocol marked the official entry of NFTs into the Bitcoin mainnet. This protocol supports the creation of "digital artifacts" on the Bitcoin network, which can include various formats such as images, documents, videos, and audio. Since its launch, the number of NFT projects based on Ordinals has experienced explosive growth.

Several typical Bitcoin network NFT projects include:

1. Bitcoin Rock: The first NFT project issued based on the Ordinals protocol, with a total issuance of 100. It is reported that its current transaction price has reached 1 Bitcoin.

2. Ordinal Punks: PFP collectibles minted among the first 650 inscriptions on Bitcoin, with a total issuance of 100. The minting price is 0.01 Bitcoin, and the current highest transaction price has reached 9.5 Bitcoin (approximately $241,000).

3. Projects like Bitcoin Shrooms and Shadow Hats have also begun preparations, but minting has not yet started.

It is worth noting that some Ethereum NFT projects that promised to cross-chain to the Bitcoin network have also attracted investment from investors, demonstrating a strong market interest in Bitcoin network NFTs.

Current Status of Bitcoin Network NFT Infrastructure

The infrastructure related to Bitcoin network NFTs is still in its early stages and there are many inconveniences.

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's full nodes, which is time-consuming and has a high technical threshold.

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

4. Minting Risk: Due to the limitations of the order number pattern, users may pay fees but be unable to successfully obtain the NFT.

The rise of NFTs on the Bitcoin network has also sparked controversy within the community. Supporters believe this will increase the use cases for Bitcoin, raise transaction fees, and benefit miners in maintaining network security. Opponents, however, worry that this may deviate from Bitcoin's original intention as a peer-to-peer cash system and could lead to higher transaction fees.

In any case, the development of NFTs on the Bitcoin network provides more users with the opportunity to access and understand the Bitcoin ecosystem. As the number of users increases and the wealth effect becomes apparent, the relevant infrastructure is expected to gradually improve. However, investors still need to be cautious, carefully assess project risks, and avoid asset losses.