Non-fungible tokens (NFTs) are mostly in the playground of Ethereum (ETH), or other blockchain projects compatible with smart contracts. But can they be linked to the Bitcoin network (BTC)? Yes, thanks to ancillary solutions. Stacks is one of them.
Creating NFTs with Bitcoin
The reason we’re talking about Bitcoin NFTs right now is that an ancillary solution, Stacks, allows you to create non-fungible tokens based on the largest crypto payment network. Stacks is a separate blockchain from Bitcoin, unlike layer 2 solutions like the Lightning Network.
The blockchain uses smart contracts, then aggregates the transactions created and settles them on the Bitcoin blockchain. For this reason, Stacks considers itself a “layer 1.5” solution.
The result is that it is possible to create NFTs that are de facto Bitcoin-compatible, even if they require an ancillary blockchain in order to be created and exchanged.
Can Bitcoin NFTs be democratized?
One might wonder what the point of these new NFTs is, as Ethereum and other smart contract platforms seem more suited to this sector. What Bitcoin can bring, however, is its substantial weight. The cryptocurrency is still far ahead of its peers, with a capitalization that exceeds $1 trillion, or 45% of the total cryptocurrency market cap.
For now, however, it is still a small market. According to data shared by Stacks, Stacks Punks, the equivalent of Ethereum’s well-known Cryptopunks, shows an exchange volume of 9,746 STX, the native Stacks token. That’s a far cry from the price of a single Cryptopunk, as these NFTs are currently fetching colossal prices of several hundred thousand dollars.
Will NFTs usable with Bitcoin find an interest beyond the maximalists and those who do not believe in the future of Ethereum and its consorts? It’s hard to estimate, but what is certain is that it shows that the field of non-fungible tokens is here to stay.