Elon Musk criticized current NFTs for not being stored on-chain and proposed Bitcoin Ordinals as a solution.
Bitcoin Ordinals are NFTs inscribed directly onto the Bitcoin blockchain, ensuring their longevity and integrity.
There is a growing trend towards storing NFTs on-chain, with Larva Labs moving their Cryptopunks to on-chain storage in August 2021.
Elon Musk, the CEO of Tesla, recently appeared on The Joe Rogan Experience and shared some important insights about non-fungible tokens (NFTs), shedding light on the unique benefits of Bitcoin Ordinals.
Well, Musk is hardly one to hold back with his views. We know your curious to know so here’s what went down!
Musk Spills It All
During the podcast, Musk didn’t hold back, pointing out a critical flaw in the current NFT system — the lack of on-chain storage for the associated digital assets.
“The NFT is not even on the blockchain; it’s just a URL to the JPEG,” Musk highlighted.
He also chose to expose the vulnerability of NFTs reliant on external servers. His solution? Embed the JPEG directly onto the blockchain to mitigate risks associated with third-party failures.
Here’s Some More Context: Bitcoin Ordinals: A Simple Guide About Bitcoin NFTs For Beginners
The Growth of Bitcoin Ordinals
Musk’s unexpected commentary resonated strongly with proponents of Bitcoin Ordinals, a novel form of NFTs birthed in the Bitcoin ecosystem. Developer Casey Rodarmor led this innovation in January, capitalizing on the Taproot soft fork from November 2021.
With Bitcoin Ordinals, digital assets are inscribed directly onto the blockchain, ensuring their longevity and integrity — a solution directly addressing Musk’s concerns.
Cryptocurrency analyst Will Clemente and NFT project creator Rohun “Frank” Vora quickly praised Musk’s insights, highlighting the growing traction of Bitcoin Ordinals. Vora accentuated the elegance of Ordinals, calling it “the most elegant solution to one of the most universal criticisms of NFTs.”
Also Read: Tesla Q3 2023 Report: Is Elon Musk Bullish on Bitcoin (BTC) Again?
NFTs on the Blockchain
Larva Labs, the creators of Cryptopunks, made a significant move in August 2021 by moving their NFTs to on-chain storage, setting an example for this growing trend. This shift, along with Musk’s comments, highlights a broader change toward ensuring the long-term and easy access to digital assets on the blockchain.
Despite the excitement about Bitcoin Ordinals, Ethereum still leads the way in the NFT world, with 84% of all trading volumes as of June, according to data from CoinGecko. However, the strong security and decentralization of the Bitcoin network provide a strong alternative, particularly for valuable NFTs.
Source: coinpedia.org