- Bitcoin is gearing up to catch Ethereum.
- Developers have published a new token standard that allows users to migrate their Ethereum NFTs to Bitcoin.
- The new token standard is a game-changer for the NFT industry.
Ethereum’s undisputed dominance in the NFT industry has remained unchallenged since the inception of the digital asset. Many competitors have emerged over the years, offering exciting solutions, yet none have been able to dethrone Ethereum from its reign. However, with Bitcoin’s resurgence in the NFT sector, Ethereum’s supremacy could be under threat.
Bitcoin, the reigning king of cryptocurrencies, has swiftly ascended the ranks, securing the second spot in the market within a few months. Now, the network is set on overthrowing Ethereum’s long-standing supremacy in the NFT industry.
How is it planning to do so? By enabling the migration of Ethereum NFTs into its network.
A Seismic Shift
On Friday, May 30, Ordinals Market, the largest Bitcoin NFT market, in collaboration with NFT collection Miladys, jointly published the BRC-721E standard allowing users to migrate ERC-721 NFTs to Bitcoin.
The new protocol is a game-changer and could signal a seismic shift in the NFT landscape by allowing Bitcoin to reign supreme. However, before Bitcoin can do that, it’s important to note the BRC-712E protocol is still in its early stages.
Nevertheless, NFTs on Bitcoin have been spreading like wildfire. According to Dune Analytics, users have inscribed over ten million ordinals on the network and have generated over $44 million in fees – a 200% increase since the first week of May.
As more users jump on board the hype train, learning how to migrate an Ethereum NFT to Bitcoin could be helpful.
How Does BRC-721E Work?
The BRC-721E token standard allows users to convert their Ethereum-based ERC-721 NFTs into Bitcoin Ordinals by using a bridge between both networks.
The process involves sending ERC-721 NFTs to a burn address to trigger an on-chain inscription request. The token standard then encodes the metadata directly onto a burn transaction, which nominates a Bitcoin address to receive the inscription.
By doing so, the BRC-721E protocol doesn’t store metadata directly on the Bitcoin but instead points to the original Ethereum NFT using the burn transaction and an indexer.
Additionally, since inscriptions are limited to 100 bytes, and high-quality images can be 10,000 times the size, this mechanism significantly reduces the costs of inscribing an image. It allows rich, dynamic meta on Bitcoin without taking up block space.
BRC-721E is undoubtedly a significant achievement for the NFT space because it enables assets to transition between Ethereum and Bitcoin while maintaining their unique properties and provenance.
How to Migrate Ethereum NFTs to Bitcoin
Before you follow this tutorial, it’s important to note that every action is irreversible due to the immutable nature of blockchains, and there’s no way to undo it once it’s set in stone. Therefore, it’s highly advised to be careful and double-check everything before you do anything permanent.
The first step is to Burn your ERC-721 NFT by using the following ETH call.
Replace the ETH address with your address, the Token ID with the NFT’s token ID, and the receiving BTC address with your Bitcoin address.
This call triggers the on-chain inscription request mentioned earlier.
After your ERC-721 NFT has transferred to the burn address, you must inscribe the following BRC-721E JSON code on Bitcoin to claim your ETH burn on Bitcoin.
Be sure to replace the token_id and contract parameters with that of your NFT. Once the code is inscribed, your bridged NFT will appear on a custom Ordinal marketplace collection page with its full metadata.
On the Flipside
- GoingParabolic, the owner of BAYC 1626, one of the most valuable Bored Ape NFTs, inscribed his BAYC on Bitcoin using TeleBurn, a creator platform for making Bitcoin NFTs using ordinals.
- 300,000 Transactions still sit in limbo on Bitcoin’s mempool, awaiting confirmation because of the Ordinals craze.
Why This Matters
BRC-721E could be the edge Bitcoin needs to gain ground over Ethereum and end its reign. However, the new standard could hinder the network’s scalability given Bitcoin’s recent struggles with BRC-20 memecoins and Ordinals.
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