In the initial stage of the conversion, metadata will not be stored on-chain. Embracing the future of digital art storage, Bitcoin Ordinals, a cutting-edge Layer-2 solution, is set to introduce a new avenue for Ethereum’s ERC-721-based non-fungible tokens (NFTs) to be transferred onto the Bitcoin (BTC) blockchain. The much-anticipated BRC-721E standard plays a key role in this innovative endeavor.
Jointly introduced by Bitcoin Ordinals and Bitcoin Miladys, a meme token, the BRC-721E standard is designed to facilitate the seamless conversion of immutable, verifiable ERC-721 NFTs into Ordinals.
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In the initial stage, metadata will not be stored on-chain, but it will be possible for users to keep a lower-quality preview image and make a reference to the Ethereum burn within the raw image data.
The conversion process starts with the ERC-721 NFT being irreversibly burned via an Ethereum call function. This burning acts as an on-chain inscription method. To stake a claim for the Ethereum burn on Bitcoin, users must inscribe valid BRC-721E data. After the inscription, the bridged NFT will appear on a dedicated Ordinals market collection page with complete metadata. While metadata will initially not be stored on-chain, the Ordinals market has stated that the underlying principles of BRC-721E and the flexibility of the indexers will allow the protocol to evolve over time.
Since its launch in January 2023, Bitcoin Ordinals has provoked considerable debate in the crypto community. This intrigue was amplified with the introduction of the BRC-20 standard in March, paving the way for the creation of a new non-fungible token standard for the Bitcoin blockchain.
The amalgamation of BRC-20 and Ordinals presented fresh opportunities for minting new tokens on the Bitcoin blockchain, with tokens such as Ordi, Vmpx, and Pepe rapidly gaining popularity. Bitcoin Ordinals recently surpassed 10 million inscriptions.