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NFTs on BTC

Basic about BTC

Max Supply: 21,000,000

1 BTC = 1 * 10^8 sat

UTXO

https://river.com/learn/bitcoins-utxo-model

Address Types of BTC

  • P2PKH

  • P2SH

  • SegWit

  • P2TR

https://bitcoin.design/guide/glossary/address/

Segwit
Segwit

NFT = Non-fungible token

NFT on Ethereum

Type

  • ERC721

  • ERC1155

  • etc.

Metadata

  • TokenID

  • Picture, Video, Music, etc. (On-chain or Off-chain)

Numbers

  • Infinity

Technology Base - Smart Contract

NFT on BTC

Type

  • Ordinals (One of the NFT solutions only)

Metadata

  • Text, Picture, Video, Music, etc. (On-chain)

Numbers

  • Limited

What is Ordinals?

Make every satoshi non-fungible!

Segwit + Taproot → Ordinals

https://docs.ordinals.com/overview.html

  • satoshis are ordered since mined

  • satoshis are processed in order for BTC transfer transactions

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Sat Sample
Sat Sample
Degree Represtation
Degree Represtation
  • Blocks: A new block is mined approximately every 10 minutes, from now until the end of time.

  • Difficulty adjustments: Every 2016 blocks, or approximately every two weeks, the Bitcoin network responds to changes in hashrate by adjusting the difficulty target which blocks must meet in order to be accepted.

  • Halvings: Every 210,000 blocks, or roughly every four years, the amount of new sats created in every block is cut in half.

  • Cycles: Every six halvings, something magical happens: the halving and the difficulty adjustment coincide. This is called a conjunction, and the time period between conjunctions a cycle. A conjunction occurs roughly every 24 years. The first conjunction should happen some time in 2032.

This gives us the following rarity levels:

  • common: Any sat that is not the first sat of its block

  • uncommon: The first sat of each block

  • rare: The first sat of each difficulty adjustment period

  • epic: The first sat of each halving epoch

  • legendary: The first sat of each cycle

  • mythic: The first sat of the genesis block

Rare Sat Supply

  • common: 2.1 quadrillion

  • uncommon: 6,929,999

  • rare: 3437

  • epic: 32

  • legendary: 5

  • mythic: 1

What is Inscriptions?

  • Metadata for NFTs on BTC

  • Text, media, etc.

  • Store in Taproot script ( size < 4M)

How the NFT created on BTC?

Create a transfer, involve the target sat, input the inscription you would like to write onto BTC blockchain.

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References

https://www.theblockbeats.info/news/35749%20Inscriptions

https://news.marsbit.co/20230320170428135918.html