NFTs ‘on Bitcoin’: Yes, That’s a Thing!
For the most part, the action takes place on the Ethereum (ETH) blockchain, which has made some hardcore bitcoiners skeptical of this new crypto market segment. However, there is also a market of NFTs secured by the Bitcoin (BTC) blockchain.
Read on to learn about what’s happening with Bitcoin-secured NFTs.
NFTs are moving beyond Ethereum
Until recently, Ethereum has been the go-to blockchain for minting and trading NFTs. That is changing quickly, however, as Ethereum high gas fees have pushed out many would-be market participants, making NFTs on other chains more attractive.
The Bitcoin blockchain has also a role to play here.
While NFTs “on Bitcoin” don’t exist purely on the Bitcoin blockchain (in a way that ERC721 tokens exist on Ethereum), they are secured by the Bitcoin blockchain. The additional tech stack that powers the ability to issue and secure NFTs with Bitcoin is provided by the likes of Counterparty, Stacks, and the Liquid Network.
Let’s dive in and take a look at some of the most prolific NFT projects secured by Bitcoin.
Rare Pepes & crypto art on Scarce City
Scarce City is a Bitcoin-secured art auction platform that enables artists to sell their artwork for BTC.
The Scarce City team claims that “Bitcoin’s finest goods should be sold according to the network’s properties of pseudonymous, borderless, permissionless, trust minimized, and verifiable authenticity and supply.”
On the auction platform, art is sold via Lightning-powered auctions to “keep auction participants accountable by collateralizing their bids through instant, anonymous, low-fee Lightning Network payments,” the team explains on its website.
In addition to giving artists the ability to sell their physical art in exchange for BTC, the marketplace also sells an NFT series based on the Pepe The Frog internet meme, called the Rare Pepe collection.
Rare Pepe NFTs are powered by Counterparty – an open-source protocol built on top of the Bitcoin network – that uses the Bitcoin blockchain to record data.
By securing NFTs on Bitcoin, these digital collectible cards arguably have a chance of lasting longer than NFTs secured by newer chains that may end up disappearing (or forking) in a few years’ time. For NFT holders, that is something to consider.
NFT skins for Bitcoin gamers
Bitcoin-secured NFTs are not only limited to artworks and dank memes. They also have applications in the gaming world. For instance, Lightnite, a play-to-earn online game powered by Lightning payments, utilizes Blockstream’s Liquid Network to enable players to purchase and earn in-game items in the form of NFTs.
The Liquid Network is a Bitcoin sidechain that can facilitate the trading of these and other Bitcoin NFTs. While it was created by Blockstream, it’s currently governed by a federation of parties and operated on an open-source blockchain platform called Elements.
In a blog post, Blockstream explains that Lightnite players receive a unique Liquid token in their account every time they purchase or earn a skin. These tokens can then be withdrawn to a personal Blockstream wallet for safekeeping or to trade with other Lightnite players. Should a Lightnite player receive a skin outside of the game, they can deposit the Liquid token in their Lightnite account to receive the skin and deploy it in the game.
Lightnite skins are not the only NFTs floating around on the Liquid Network. Another notable NFT project on Liquid is Raretoshi.
Raretoshi is an NFT marketplace that enables artists to sell rare digital art for L-BTC (pegged bitcoin on Liquid), benefiting from lower transaction costs and the ability to get paid in bitcoin.
NFTs on Stacks: Web 3.0, built on Bitcoin
Stacks says it is a decentralized, open-source network built on Bitcoin that aims to unleash Bitcoin’s potential as a programmable base layer to build “a better Internet.” That means that developers can mint NFTs and build NFT marketplaces that are secured by the power of the Bitcoin network.
The Stacks team says that “Bitcoin has all the properties that decentralized apps and smart contracts need: the security, the settlement assurances, the capital, and the network effects.”
In light of Stacks’ Bitcoin-powered technology stack and the rising popularity of NFTs, it comes as little surprise that the first NFT ventures have already started to emerge on Stacks.
Interestingly, Satoshibles – an NFT collection by bitcoiners for bitcoiners that launched on Ethereum – announced that it plans to move to Stacks via an NFT bridge between Ethereum and the Stacks blockchain.
“Using Satoshi as our mascot, we have always felt that we are the NFT for Bitcoin enthusiasts, however, it’s a pretty hard sell when your project is on Ethereum,” the Satoshibles team admitted.
To bring its series of 5,000 algorithmically generated, Satoshi-themed NFTs close to the Bitcoin community, Satoshibles holders will be able to port their NFTs to Bitcoin via Stacks.
As the NFT market continues to grow and more NFTs “powered by Bitcoin” emerge, we could see even more money flowing into non-fungible tokens, especially when collectors can trust that their NFTs are secured by Bitcoin.
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