In recent efforts to diversify the list of products in the NFT marketplace to enable users to add variety to their portfolios, Binance, the world’s leading cryptocurrency exchange, introduced Bitcoin non-fungible tokens (NFTs), marking a significant milestone for the platform’s NFT ecosystem. It now enables transactions straight from your spot wallet, meaning you no longer need a separate BTC wallet to purchase, withdraw, and list Bitcoin non-fungible tokens from the specific network. You can withdraw Bitcoin NFTs by having Bitcoin in your spot wallet, so check the Bitcoin price, consider your risk tolerance, and decide accordingly. The support stems from the company’s aspiration to streamline transaction processes and make it easier for newcomers to enter the ever-developing market.
Binance supports the BNB Smart Chain, Ethereum Network, and Polygon Network on the NFT Marketplace. Still, by expanding its offerings to Bitcoin Ordinal NFTs, the exchange broadened the utility of its ecosystem to a broader customer base while encouraging advancement in the NFT realm. Furthermore, the company announced it would expand its range of offerings, providing more and more NFT collections, each with unique functionality.
However, only the existing NFT collections are available to the public. As the exchange keeps dipping its toes into this rewarding sector, it will regularly support more and more displays.
Inscribed Satoshi ordinals, as they are also called, will likely spark interest in the leading digital coin, impacting the cryptocurrency realm positively as they gain traction among cryptocurrency users.
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Bitcoin Ordinals are growing in number and market capitalization
Since the first Bitcoin Ordinal was created in January of this year, more than 8 million digital artifacts have emerged, accumulating a total market capitalization exceeding $600 million. Simply put, they are similar to the non-fungible tokens (NFTs) on the Ethereum network. However, to better understand what they are, let’s first start by grasping what a Satoshi is. A Satoshi (SAT) is the smallest part of a Bitcoin, which comprises 100k units of this. The system is designed to make it possible for the Bitcoin blockchain to build non-fungible tokens, resulting in Bitcoin NFTs, also commonly known as Bitcoin Ordinals.
Not long ago, satoshis were interchangeable units, and there couldn’t be any difference between one and the other. However, the Taproot and Segregated Witness updates to the protocol changed how they exist, and now each Satoshi has its authenticity.
The Segregated Witness upgrade deployed in 2017 enabled participants in the blockchain to attach digital signatures, images and videos, and other validation data in the witness script, boosting Bitcoin’s block size.
On the other hand, the relatively recent Taproot upgrade brought a series of implementations aimed at decreasing user transaction costs, boosting speed and improving security. One of the features that made it possible is Schnorr Signatures, which raised the security and speed of transaction validation on the blockchain. Tapescript, the coding language update that enabled Bitcoin Improvement Proposals to function, is responsible for expanding the size of Bitcoin blocks, generating more flexibility in the system. If smart contracts on the Bitcoin network were a far-away dream for tech-savvy individuals, the Tapascript upgrade enabled these functions through the newly implemented features.
Last, the Taproot upgrade allowed more data to be stored in the ecosystem. If past transactions asked for a digital signature to be executed, the Taproot update eliminated this requirement, so you can now prove ownership over an asset without going through additional steps. Moreover, investors can utilize multi-signature, timelock releases, and other features.
There are several key differences between Bitcoin Ordinals and Ethereum NFTs
Given the similar characteristics of the two assets, Bitcoin Ordinals and NFTs are often interchangeably used. Each piece is unique, and both terms are associated with digital art. However, several significant differences should be kept in mind before adding labels. First, the vast majority of non-fungible tokens are built and monitored via smart contracts, even though both are stored in different locations. For instance, some NFT platforms use decentralized storage systems to keep NFTs or information on specific tokens. Ordinal Inscription, on the other hand, though they resemble NFTs, are digital assets inscribed on satoshis, meaning they are stored directly on the blockchain.
Additionally, non-fungible tokens use metadata to permit developers and creators to play with the characteristics and design of a specific NFT. A basic profile picture (PFP) NFT usually integrates information like name, description, traits, and address into the hosted image. Plus, to improve the image’s resolution, NFT projects often ask for metadata updates from their owners. The difference here lies in the flexibility with which creators can manage the assets. Ordinal ownership doesn’t employ similar features since ordinal inscriptions are stored on the blockchain. Besides being incapable of changing elements in an ordinal once inscribed in the Satoshi, these assets also don’t permit developers to gain royalties from selling their work, which is not the case for non—fungible tokens. However, Binance announced it would support creator royalties for Bitcoin NFTs.
Given the dissimilarities between Satoshi inscribed ordinals and non-fungible tokens, Casey Roadarmor, the software engineer and creator who developed the Ordinals, refers to the first term as “digital artifacts.” Therefore, before pondering which asset to focus on, it’s helpful to remember that the two categories of assets differ in several key aspects.
So far, there are 20 NFT collections on the Binance NFT Marketplace
As mentioned above, purchasing Bitcoin NFTs only requires some Bitcoin or any other cryptocurrency in your spot wallet and carefully inserting the deposit address, as the assets may not be recoverable if they reach the wrong address.
Binance will keep adding more NFT collections regularly, and so far, you have 20 collections to choose from, with the following included:
- Bitcoin Wizards – a group of digital collectibles paying tribute to a pivotal moment in Bitcoin’s history
- Bitcoin Bandits – a set of 512 unchangeable inscriptions stuck to the Bitcoin blockchain
- Bitcoin pizzas – a collection of Bitcoin ordinals with a maximum market supply of 552
- Bitcoin punk – a set of NFTs resembling CryptoPunks and being capped at 10.000
- Bitcoin Frogs – a bunch of digital collectibles capped at 10.000.
As the NFT realm keeps making strides, Binance encourages innovation and advancement in this sector. If you want to add the latest offerings to your holdings, remember that the NFT prices can go up and down abruptly, and use precaution when investing in highly volatile assets like these.
