Elon Musk Sparks Debate on Bitcoin Ordinals, Calls for JPEGs to be Embedded in Blockchain
Summary:
Tesla's CEO Elon Musk recently criticized most non-fungible token (NFT) projects for not embedding their JPEGs directly in the blockchain, sparking a debate that this supports the concept of Bitcoin Ordinals, a type of Bitcoin NFT. Highlighting the potential for lost images if a hosting company folds, he suggested that including the JPEG directly could preserve the artwork's existence. Bitcoin enthusiasts agreed with Musk's comments, recognizing the intrinsic value of Bitcoin Ordinals, which already allow for such direct blockchain storage. The conversation also noted exceptions in current NFT projects that embed the JPEG onto the blockchain, like Larva Labs' Cryptopunks.
Tesla's CEO, Elon Musk, recently sparked debate about the usefulness of Bitcoin Ordinals, a type of Bitcoin NFT, during a conversation on The Joe Rogan Experience podcast. He criticized the inherent flaw in most NFTs, stating that the digital artwork linked to NFTs isn't even embedded in the blockchain, but merely a URL to the JPEG. Musk suggested that these NFT projects should include the JPEG directly on the blockchain to maintain the artwork's existence, even if the company hosting the image folds.
Bitcoin enthusiasts quickly pointed out that Musk's comments essentially support the rationale behind Bitcoin Ordinals. This kind of Bitcoin NFT, created by developer Casey Rodarmor in January, allows for the storage of data directly on Bitcoin's blockchain. Notably, there are currently over 38 million Ordinals inscriptions embedded on Bitcoin's blockchain.
Numerous observers, including NFT creators and Bitcoin analysts, agreed with Musk's view. Rohun "Frank" Vora, the founder of NFT projects DeGods and y00ts, lauded Bitcoin Ordinals as "the most elegant solution" to a largely criticized aspect of NFTs. Moreover, an Ordinals developer, Leonidas, even immortalized Musk's commentary into the blockchain at block 814,773.
Despite Musk's notorious criticism of NFTs in the past, it's worth noting that not all NFT projects on Ethereum conform to his critique. For instance, Larva Labs moved its Cryptopunks NFTs directly onto the blockchain in August 2021, an action that substantially enhanced the viability of the Cryptopunks images.
Separately, Metagood, creators of the Ethereum-native OnChainMonkeys, confirmed plans to transition its NFTs to Bitcoin. CEO Danny Yang didn't address the JPEG issue directly, but supported Bitcoin Ordinals, describing the protocol as more decentralized and secure compared to its Ethereum counterparts. Despite this, Ethereum continues to host 84% of all current NFT trading volumes. Bitcoin and ImmutableX followed with market shares of 11% and 2.5%, respectively.
Published At
11/2/2023 4:44:29 AM
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