Bitcoin also has NFTs!? What are the three major trends behind it? Be cautious when depositing funds as a beginner on unisat.io!
Cheung To discusses NFTs (non-fungible tokens). He explains that NFTs are often associated with Ethereum but can also be issued on the Bitcoin network. He goes on to discuss how NFTs are typically represented by images but can also include text, videos, music, and other media. By using smart contracts, these assets can be turned into unique digital items. Once created, these NFTs can be stored in a digital wallet, and communities can be formed around them for various activities such as airdrops, membership benefits, promotions, and trading.
Cheung To further explains that Bitcoin, unlike Ethereum, does not have smart contract functionality. However, some individuals have found a way to store data within the Bitcoin blockchain by utilizing the available space in each block. This has led to the emergence of Bitcoin-based NFTs, often referred to as BRC20. The name BRC20 is reminiscent of ERC20, which is a token standard on the Ethereum blockchain used for transferring tokens. Cheung To clarifies that BRC20 and ERC20 are not related and that the name "BRC20" is merely a marketing term to evoke associations with smart contracts and Ethereum.
Cheung To concludes the video by mentioning that Bitcoin-based NFTs can include images and even allow users to create their own tokens consisting of four-letter or four-digit combinations. However, he notes that currently, Bitcoin-based NFTs are primarily focused on issuance and do not have significant utility due to the lack of smart contract functionality.