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BRC721: A New Protocol to Bring ERC-721 Features to Bitcoin Ordinalsby@otterolie
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6,049 reads

BRC721: A New Protocol to Bring ERC-721 Features to Bitcoin Ordinals

by OtterOlieApril 18th, 2023
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A developer has proposed a new protocol for Bitcoin, called BRC-721. It aims to enable Ordinals, a type of digital collectables, to function similarly to NFTs (non-fungible tokens) Currently, Bitcoin Ordinals lack a standardized method for grouping items into collections.
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A developer has proposed a new protocol for Bitcoin called BRC721 which aims to enable Ordinals, a type of digital collectible, to function similarly to Ethereum-based NFTs (non-fungible tokens). Currently, Bitcoin Ordinals lack a standardized method for grouping items into collections, as this relies on specific, often centralized, services and wallets.


To address this issue, the developer, Poyo, is working on the Ordinals Collection Protocol, also known as BRC721. Poyo envisions BRC721 as a decentralized standard enabling marketplaces to instantly identify collections and reveal metadata directly from the blockchain.


The main objectives of BRC721 include supporting collections, introducing a mechanism to reveal metadata after the fact, and streamlining the creation and verification of Ordinal collections by removing upfront payment requirements. This feature is designed to mimic the features of Ethereum's ERC-721 standard authored by William Entriken, which was the first non-fungible token (NFTs) standard written for Ethereum.


Poyo plans to launch a BRC721 API implementation during the week of April 9, although it's unclear when the feature will be generally available. Ordinals, which were introduced in January by Casey Rodarmor, allow digital collectables with embedded media to exist on the Bitcoin blockchain. Improvements are ongoing, extending Ordinals with BRC-20 to support fungible assets, such as tokens that are not collectable.


While small marketplaces focused on Ordinals exist, more established platforms like Magic Eden have started to recognize Bitcoin Ordinals. Magic Eden launched a platform for Ordinal creators recently and already operates a marketplace for Ordinals. Community analysis on Dune Analytics indicates that over 1,061,167 Bitcoin Ordinal inscriptions have been created since the feature's introduction.


Despite the growing popularity of Bitcoin Ordinals, the process of buying and selling these assets remains complex, especially compared to Ethereum NFT transfers. Continued developments could make Ordinals more accessible to a broader audience.


Direct references from the document indicate that the BRC721 protocol aims to introduce a decentralized, trustless method for creating and verifying collections. This addresses issues such as upfront payments, metadata standards, and collection specifications. The protocol describes the data structures for collections and items in a manifest, with specific rules to determine if an ordinal inscription belongs to the specific collection.


The proposed standard also specifies the conditions required for verifying inscriptions and revealing metadata as part of a collection.


For complete information on how the protocol will function, please visit the author’s website, which provides a detailed explanation of the protocol proposal.