Bitcoin Ordinals aims to connect Ethereum NFTs with BRC-721E Standard Launch
Bitcoin Ordinals, a state-of-the-art protocol that enabled Bitcoin-based NFTs, has recently launched the BRC-721E standard in collaboration with the Ordinals market and the Miladys NFT collection. This launch now enables traders to transfer their Ethereum ERC-721-based nonfungible tokens (NFTs) to the Bitcoin blockchain.
Ethereum NFTs can now be migrated to the Bitcoin blockchain
Known for its decentralized storage of digital art, Bitcoin Ordinals is paving the way for the migration of Ethereum NFTs to the Bitcoin blockchain. It has achieved this remarkable milestone with the initiation of the BRC-721E standard. This technology allows the transfer of ERC-721 NFTs to Ordinals, though it’s worth noting that initially, metadata is not stored on-chain.
Co-introduced by the Ordinals market and the Bitcoin Miladys NFT collection, the BRC-721E standard allows the conversion of the immutable, verifiable ERC-721 NFTs into Ordinals. A simplified image and a reference to the Ether burn within the raw image data will be the primary elements stored in the initial stages.
Burning your NFTs before migration
The migration process necessitates the burning of the ERC-721 NFT via an ETH call function. As an on-chain inscription method, this irreversible process signifies the beginning of the transition. For the ETH burn to be claimed on Bitcoin, the user must validate the BRC-721E data. Once accomplished, the transferred NFT will be displayed on a unique Ordinals market collection page, complete with metadata.
Indexers play a critical role in this process. They verify the burned NFT data inscriptions, ensuring that each token has no more than one valid inscription and that the genesis address aligns with the burn transaction call data.
Despite the fact that metadata is not initially stored on-chain, oftentimes being uploaded to centralized services, the Ordinals market has expressed confidence in the fundamental principles of BRC-721E. The market touts the protocol’s adaptability over time, attributing it to the flexibility of the indexers.
Can this update be detrimental to Bitcoin?
The Bitcoin Ordinals initiative, launched in January 2023, has sparked considerable conversation within the crypto community. Further excitement ensued in March with the launch of the BRC-20 token standard. In the weeks following the launch, the number of BRC-20 tokens has soared from just a few hundred to over 25,000 at the time of writing.
However, not all feedback has been positive. Critics, predominantly Bitcoin maximalists, have labeled the new minting method as inefficient and wasteful, casting a shadow over the otherwise promising rise of Ordinals and the advent of this new token era. It’s also possible that the new standard will cause the network to become even more clogged, resulting in people being unable to send and receive Bitcoin transactions.
