Whereas publicly mocking non-fungible token (NFTs) throughout a podcast, Tesla CEO and billionaire Elon Musk seems to have inadvertently highlighted the case for Bitcoin Ordinals, also referred to as Bitcoin NFTs.
“The humorous factor is the NFT is just not even on the blockchain — it’s only a URL to the JPEG,” mentioned Musk in an Oct. 31 launched interview on The Joe Rogan Expertise.
Musk mentioned NFT initiatives ought to not less than encode the JPEG on-chain:
“You need to not less than encode the JPEG within the blockchain. If the corporate housing the picture goes out of enterprise, you don’t have the picture anymore.”
On social media, Bitcoiners argued Musk’s feedback really summed up the use case for Bitcoin Ordinals. Bitcoin’s model of NFTs launched in January by developer Casey Rodarmor, which was made potential by the Taproot gentle fork in November 2021.
Cryptocurrency analyst Will Clemente was amongst those who praised Musk’s feedback, noting there are 38 million and counting Ordinals inscriptions that can endlessly exist on Bitcoin’s blockchain.
.@elonmusk you simply laid out the case for Bitcoin ordinals – picture/textual content inscriptions straight on probably the most safe open supply financial community on the planet. There are at the moment 38 million of those inscriptions on the Bitcoin blockchain. pic.twitter.com/WASj1qpkz8
— Will Clemente (@WClementeIII) November 1, 2023
“That is why Ordinals will proceed to develop,” said Rohun “Frank” Vora, the creator of NFT initiatives DeGods and y00ts. “It is probably the most elegant answer to one of the crucial common criticisms of NFTs.”
Ordinals developer often called “Leonidas” liked Musk’s feedback a lot that they inscribed the 19-second video into Bitcoin’s blockchain at block 814,773:
The criticisms from Musk towards NFTs aren’t new. In December 2021, he mocked NFTs as an indication of psychological sickness in a meme exhibiting a affected person mendacity on a therapist’s sofa.
— Elon Musk (@elonmusk) December 16, 2021
Musk’s feedback nevertheless don’t stand true for all NFT initiatives on Ethereum.
For instance, Larva Labs moved its Cryptopunks NFTs on-chain in August 2021 after they lived off-chain for the primary 4 years.
“Storing them on-chain on this approach would additional cement the long-term survival of the Cryptopunks pictures and attributes, and be sure that they are often absolutely accessed by anybody with solely an Ethereum consumer,” Larva Labs within the assertion.
.@elonmusk is right that having NFT merely present an http hyperlink to somebody’s area is foolish.
Nevertheless, with uncommon exceptions, it is also foolish to insist NFT content material be on chain,
IPFS hyperlinks, with the content material backed by whoever owns the NFT is the pure answer.
— Arthur B. (@ArthurB) November 1, 2023
Metagood, the crew behind the Ethereum-native OnChainMonkeys, introduced in September that it might migrate its NFTs to Bitcoin.
Whereas the agency’s CEO Danny Yang didn’t straight tackle the JPEG dilemma, he defined that NFTs “will win on Bitcoin” as a result of it’s a safer community to work from:
“The Bitcoin Ordinal protocol is healthier designed for decentralization and safety than the Ethereum NFT protocol. Excessive-value NFTs will win on Bitcoin.”
Nevertheless, Ethereum nonetheless stays residence to 84% of all NFT buying and selling volumes, according to CoinGecko, sourcing information from June. Bitcoin and ImmutableX got here in second and third with market shares of 11% and a pair of.5% respectively.