Non-fungible tokens (NFTs) are en vogue. Millions of crypto being traded for pixel art, tokenized memes, and crypto collectibles.
Some bitcoiners are wary about this new crypto market segment since it is based on the Ethereum (ETH) network. However, the Bitcoin (BTC) blockchain secures a market of NFTs.
Continue reading to learn about Bitcoin-secured NFTs.
NFTs are moving beyond Ethereum
Until recently, Ethereum was the preferred blockchain for NFT production. However, hefty gas fees on Ethereum have pushed out many would-be market participants, making NFTs on other chains more appealing.
The Bitcoin blockchain is also involved.
Unlike ERC721 tokens on Ethereum, NFTs “on Bitcoin” are secured by the Bitcoin blockchain. Counterparty, Stacks, and the Liquid Network provide the additional tech stack needed to issue and secure NFTs using Bitcoin.
Let us examine some of the most popular NFT projects secured by Bitcoin.
Rare Pepes & crypto art on Scarce City
For artists, Scarce City is a Bitcoin-secured art auction site.
the network’s qualities of pseudonymous, borderless, permissionless, trust reduced, and verified authenticity and supply.
Auction participants are held accountable by collateralizing their bids through rapid, anonymous, low-fee Lightning Network payments, the company claims on its website.
The marketplace sells an NFT series based on the Pepe The Frog online meme dubbed the Rare Pepe collection, as well as actual art created by artists.
Rare Pepe NFTs employ Counterparty, an open-source system built on top of the Bitcoin network, 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 aren’t just for art and memes. They are also used in gaming. For example, Lightnite, a Lightning-powered online game, uses Blockstream’s Liquid Network to allow users to buy and earn in-game stuff with NFTs.
These NFTs can be traded on the Liquid Network, a Bitcoin sidechain. A federation of parties now governs it, and it runs on an open-source blockchain platform called Elements.
Blockstream states that every time a Lightnite player buys or earns a skin, they get a unique Liquid token. In order to store or trade Lightnite tokens, users must first create a Blockstream wallet. Players can receive skins outside of the game by depositing Liquid tokens into their Lightnite accounts.
The Liquid Network is home to several NFTs besides Lightnite skins. Raretoshi is another NFT project on Liquid.
Raretoshi is an NFT marketplace where artists may sell rare digital art for L-BTC (pegged bitcoin on Liquid) and get paid in bitcoin.
NFTs on Stacks: Web 3.0, built on Bitcoin
Bitcoin-based decentralized, open-source network Stacks claims can be programmed to construct “a better Internet.” Developers can mint NFTs and establish NFT marketplaces secured by the Bitcoin network.
« Bitcoin offers all the features needed by decentralized apps and smart contracts: security, settlement, capital, and network effects », explains the Stacks team.
This is hardly surprising given Stacks’ Bitcoin-powered technology stack and the growing popularity of NFT ventures.
Upcoming NFT platforms on the Stacks chain include StacksArt, STXNFT, and Boom.
On the other hand, Satoshibles, an NFT collection by bitcoiners for bitcoiners that began on Ethereum, stated it will transfer to Stacks via an NFT bridge.
Satoshibles admits that using Satoshi as a mascot is difficult to sell when your project is on Ethereum.
In order to connect Satoshibles to the Bitcoin ecosystem, holders can convert their NFTs to Bitcoin via Stacks.
We may see more money moving into non-fungible tokens as the NFT market grows and more NFTs “powered by Bitcoin” arise, especially if collectors can trust their NFTs are secured by Bitcoin.