Ethereum NFTs vs Bitcoin Ordinals: What are their special features and main differences? 

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The world we live in becomes more digitized each day, which is why so many technologies have appeared around us. For example, blockchain technology has paved the way for many fantastic novelties, including NFTs. NFTs can be described as unique innovations representing any piece of art transported in the digital space. Ethereum is the main platform where people have been creating NFTs so far, but things have started to change now, as Bitcoin has added some protocols so that its blockchain can also develop NFTs. 

So, in this article, we will compare the two blockchains for creating NFTs, their unique features, and main differences. 

NFTs on Ethereum

For a couple of years, Ethereum has been the go-to place for people who wanted to create NFTs, which is why this blockchain has various NFT marketplace projects, and a vibrant ecosystem of platforms. One of the reasons developers choose Ethereum to create new NFTs is that the blockchain is a mature network that boosts a well-established NFT ecosystem supporting NFT creation, such as Rarible, Open Sea and Super Rare. With their help, collectors, creators, and artists have a lot of advantages, as well as all the infrastructure they need to trade, show, and mint their NFTs. 

Also, one of the innovations that Ethereum has brought is smart contracts, which help in creating the NFTs, enhance the versatility and functionality of them, and automate many processes. Plus, Ethereum has a wide user base that supports innovation, which is why the blockchain also has a thriving developer community that provides great support in developing new pieces of art. 

Ethereum can support NFTs with the help of the ERC Standards, such as ERC-1155 and ERC-721, which offer the needed framework for this while also ensuring compatibility and interoperability with other platforms. 

Ordinals on Bitcoin

Bitcoin was designed as a decentralized platform at first, but over the years, it has expanded its use cases. It has created a lot of innovations with the help of protocols, such as Bitcoin Ordinals protocol, Runes protocol, BRC-20 protocol, and Bitcoin stamps protocol. Bitcoin Ordinals correlate with NFTs on Ethereum, and they are made by inscribing Satoshis, which represent the smallest unit on Bitcoin. As Satoshis can be identified uniquely, they facilitate the creation of NFTs directly on Bitcoin without needing smart contracts, which happens in the case of Ethereum. 

Bitcoin Ordinals are created directly on Bitcoin, and because of this feature, they don’t need further layers. Collectors and artists have started to create Ordinals on Bitcoin, especially as this blockchain has a high level of decentralization and security. Bitcoin is known for its great security features, which will always offer a great and transparent foundation for anyone who wants to enter the intriguing space of NFTs and use a Web3 wallet. This is why many amazing Ordinals have been created on Bitcoin and investors are looking for places where to buy Bitcoin.

Another great advantage Bitcoin has over its cousin, Ethereum, is lower transaction costs, making Bitcoin a more cost-effective solution for collectors and artists. 

What are the main differences between the two blockchains regarding creating NFTs?

Bitcoin can create both fungible and non-fungible assets

With the help of the Taproot upgrade, which occurred in 2021, Bitcoin has increased its block size by 4 MB, and with this, it was able to add data inscription. Ordinals represent the digital assets created on Bitcoin with a process called inscription, where each Satoshi has a unique number, given according to the order it was mined. However, what differs from Ethereum NFTs is that Bitcoin Ordinals are both fungible and non-fungible. 

Ethereum NFTs are minted off-chain

Another difference between Bitcoin Ordinals and Ethereum NFTs is that the second one is created off-chain, while in the case of Bitcoin, they are stored directly on the blockchain. Ethereum NFTs are created with the help of smart contracts that follow two standards: ERC-721 and ERC-1155. ERC-721 allows the transfer and offers the possibility of tracking NFTs, while ERC-1155 permits the creation of non-fungible tokens. 

Bitcoin doesn’t support royalties

On Ethereum, creators are paid with the sale of NFTs, but they also receive royalties for each subsequent purchase. But because royalties are coded into smart contacts, Bitcoin Ordinals don’t support them. This is why the ones who create Ordinals will not be able to receive royalties. 

Bitcoin Ordinals are immutable

Bitcoin Ordinals are more immutable than Ethereum NFTs, which is why they can’t be changed once they have been minted and added to Bitcoin. When an Ordinal is created, it receives a unique identifier that cannot be changed after this step. 

Conclusion

As you can see, there are similarities and discrepancies between Bitcoin Ordinals and Ethereum NFTs. Both blockchains are amazing platforms for creating art that can later be traded and sold. Over the years, people have paid colossal amounts for some unique NFTs, which is one reason why this industry has grown so much. 

The main difference between the two is how they are minted. For Ethereum, this happens with the help of smart contracts, while Ordinals are inscribed directly into Satoshis. Additionally, Ethereum NFTs are stored off-chain, which differs from Bitcoin that stores its Ordinals directly on the blockchain. 

In the future, the landscape of the NFTs world will surely improve as technology develops more, and artists could use plenty of other innovative ways to bring NFTs to life, such as using AI. Additionally, creators could mix digital art with real-world assets, which offers the possibility of more liquid physical assets. They can also increase the market base and attract a bigger number of participants.