The NFT market is soaring each day and continues to expand in each digital domain. With OpenSea reaching 1 million users in January 2022, NFTs have become an extension of blockchain technology that are here to stay.
NFTs, primarily built on Ethereum blockchain, are constantly expanding their reach. They have also debuted on other prominent blockchains including Solana. But what about Bitcoin NFTs?
Does Bitcoin support NFTs?
The Bitcoin blockchain does not natively support NFTs, but they can be minted on Bitcoin-powered blockchains or Layer-2's, for example.
Multiple sources on the internet highlight the use of Stacks, a blockchain that runs smart contracts by settling the transactions on Bitcoin. Stacks enables users or developers to mint NFTs or NFT marketplaces that can be secured through the Bitcoin network.
There are a few examples of NFT platforms that have already started to utilize Stacks to create and mint NFTs. These include StacksArt, STXNFT, and Boom. As the Stacks Team said:
Bitcoin has all the properties that decentralized apps and smart contracts need: the security, the settlement assurances, the capital, and the network effects.
One of the arguments put forward for the use of NFTs on Bitcoin is that they could last longer if other blockchains disappear, or fork in the future. Of course, this is an entirely speculative point that relies on the downfall of others. With Ethereum now having a market cap of over $345 bn in part due to its vast NFT support, it seems unlikely.
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According to a Decrypt report, Bitcoin NFTs possess a certain novel edge as compared to other blockchains NFTs.
First, Bitcoin being the world's largest cryptocurrency by market cap may help accelerate the adoption of these NFTs. Secondly, Bitcoin followers may also help stimulate the sale of these NFTs.
However, in an oversaturated NFT market that sees hundreds of new collections launch every week, is this really enough for Bitcoin NFTs to take off? Only time will tell.