CEAN News | Crypto & Business News
In a recent episode of “The Joe Rogan Experience,” Elon Musk, CEO of Tesla, sparked a conversation that has resonated with Bitcoin advocates. While sharing his skepticism about the current state of non-fungible tokens (NFTs), Musk pointed out a fundamental issue: many NFTs don’t store their associated JPEGs on the blockchain itself. He noted that the value of an NFT could be compromised if the hosting company fails, leading to the loss of the linked image.
This criticism unintentionally endorsed the utility of Bitcoin Ordinals, an innovation in the Bitcoin ecosystem. Bitcoin Ordinals, sometimes referred to as Bitcoin NFTs, are a novel application made possible by the network’s Taproot upgrade. Developed by Casey Rodarmor and launched in January, they allow for the actual data of digital items, like JPEGs, to be inscribed directly onto the Bitcoin blockchain, addressing Musk’s concern about off-chain storage.
Will Clemente, a cryptocurrency analyst, lauded Musk for shedding light on a topic that Bitcoin Ordinals are designed to address. He highlighted the growing adoption of Ordinals, with over 38 million inscriptions recorded on the Bitcoin blockchain to date. Rohun “Frank” Vora, of DeGods and y00ts fame, echoed the sentiment, suggesting that Bitcoin Ordinals present a sophisticated fix to a widely acknowledged flaw in NFTs. In a nod to Musk’s influence, an Ordinals developer known as “Leonidas” has already immortalized a snippet of Musk’s commentary in the Bitcoin ledger at block 814,773.
While Musk’s critique holds for some NFTs, not all projects share the same vulnerability. Ethereum-based Larva Labs, for example, brought its famed Cryptopunks collection on-chain in August 2021, ensuring their permanence regardless of the project’s future. Ethereum continues to dominate the NFT market, with a staggering 84% share of all trading volumes. Meanwhile, Bitcoin Ordinals and ImmutableX trail with 11% and 2.5% market shares, respectively, as per June’s CoinGecko data.
This discussion underscores the evolving landscape of NFTs and blockchain technology, where the quest for permanence and value retention in digital assets continues to inspire innovation. As industry leaders like Musk contribute to the dialogue, the trajectory of NFTs and their underlying technology could be poised for significant shifts.