Qtum

<p>Bitcoin Ordinals is a new blockchain entrant that allows for the inscription of blockchain transactions with metadata, such as images, without needing a separate token like NFTs.</p><p>Non-fungible tokens are unique tokens that use a standard called ERC-721 on Ethereum, allowing artists and creators to digitize their work.</p><p>Storing metadata for NFTs is problematic. These digital assets keep the actual artwork or content off-chain, with the blockchain only containing a link to the data. This raises concerns about reliability, permanence, and ownership of these assets.</p><h2 id="header-0">What are Ordinals?</h2><p>Bitcoin Ordinals create unique and non-fungible entities by assigning distinct identities to each Satoshi through inscription. This is done to ensure digital assets&#39; immutability and security.</p><p>The protocol assigns natural numbers to transacted Satoshis, which helps with tracking and creates a unique identifier for each Bitcoin inscription.</p><h2 id="header-1">Comparing Ordinals and Traditional NFTs</h2><p>Ordinals and traditional NFTs differ in data storage, representation methods, creation, trading processes, uniqueness, and rarity factors.</p><p>Ordinals use on-chain storage for greater immutability and security, while traditional NFTs rely on off-chain storage.</p><p>Inscribing data onto satoshis is technically complex while minting NFTs has a more mature process.</p><p>Ordinals are unique because they are tied to a specific satoshi on the Bitcoin blockchain while traditional NFTs determine rarity based on the attributes of the artwork or the scarcity of the token&#39;s supply.</p><h2 id="header-2">Cost and Environmental Impact</h2><p>Ordinals may have different cost implications than traditional NFTs due to the energy-intensive nature of the Bitcoin blockchain.</p><p>Inscribing ordinals on Qtum&#39;s PoS blockchain would be a suitable and fitting use case for this novel idea of inscribing transactions without incurring higher energy costs.</p><h3 id="what-39-s-next">What&#39;s next?</h3><p>The digital art and collectibles market will undergo significant changes with new technologies and creative approaches, including Ordinals, which differ from traditional NFTs in their technical implementation and impact on blockchains.</p><p>Ordinals are expected to reshape the market and create new opportunities for digital asset ownership.</p><h2 id="header-3">Qtum’s Blog</h2><p>If you’re looking for an in-depth review of Qtum’s happenings and all extended versions of our articles, head to our revamped <a href="https://qtum.org/blog" rel="noopener noreferrer nofollow">Qtum Blog.  </a></p>

Ordinals vs Traditional NFTs

Table of Contents

Qtum_Foundation

Other articles published on Dec 15, 2023

Network traffic surge stalls Arbitrum One

Cryptocurrencies Trends to Be Aware of in 2024

Solana’s BONK Rockets to Become the 69th Largest Coin with Over $1 Billion Market Cap

SafeMoon Declares Chapter 7 Bankruptcy

Common Wealth and PAID Network Forge Strategic Partnership to Revolutionize the Web3 Investment L...

Ripple Labs CLO Predict The Future of Crypto in 2024

Join our free newsletter for daily crypto updates!