Bitcoin has introduced the BRC-721E token standard, which allows Ethereum-based NFTs to migrate to the Bitcoin network. This innovation was developed by Ordinals Market and Xverse, a Bitcoin NFT marketplace and a Bitcoin wallet respectively. It aims to improve the NFT landscape and strengthen Bitcoin’s position in the market.
What is BRC-721E and how does it work?
BRC-721E is a token standard that enables the conversion of ERC-721 tokens, which are NFTs on the Ethereum network, to BRC-721E tokens, which are NFTs on the Bitcoin network. The process involves burning the ERC-721 token and inscribing it into the Bitcoin network. The NFT and its metadata can then be viewed on the ordinals.market website.
BRC-721E is based on BRC-721, which is a token standard for NFTs on the Bitcoin network. BRC-721 is derived from BRC-20, which is a token standard for fungible tokens. BRC-721 differs from BRC-20 in that it uses a JSON file to handle token identification and functionality, and it uses serialization through ID inscription to reduce transaction costs and data storage.
Why is BRC-721E important?
BRC-721E offers many benefits for the Bitcoin ecosystem, especially in increasing the number of NFT transactions on the network. It also makes it easier for NFT collectors to switch between blockchain platforms and explore new opportunities. Moreover, it demonstrates Bitcoin’s potential and prominence in the NFT sector.
According to data from Dune Analytics and CryptoSlam, Ordinals Market has seen a surge in inscriptions and trading volume since its launch in January 2021. It has also surpassed Solana and ranked second after Ethereum in terms of network volume. However, this growth has also caused some congestion and delays on the Bitcoin network, which need to be addressed.
BRC-721E is expected to revitalize the Bitcoin NFT market by simplifying and streamlining the migration process. As more projects adopt this token standard, more collectors will be attracted to Bitcoin NFTs, fostering innovation and development in this exciting field.
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