Overview of BRC-721

What is BRC-721?

BRC-721 is an experimental standard designed to introduce non-fungible tokens (NFTs) into the Bitcoin network. By defining CollectionManifest, InscriptionManifest, and RevealManifest, BRC-721 precisely specifies the structure, content, and validation rules of collections and items, ensuring the uniqueness of each inscription and its identity belonging to a specific collection. Compared with native NFTs, BRC-721 demonstrates significant advantages in reducing fees, improving network utilization, and compatibility with existing NFT platforms and tools.

BRC-721 vs. Native Ordinals NFTs: The Key Differences

1. Data Storage

Native Ordinals necessitate the storage of an image for each inscription, which results in challenges like high minting fees and excessive use of Bitcoin network space. In contrast, BRC-721 needs to specify data such as images only during the Deploy phase, eliminating the need to save images during the Mint operation. This significant change drastically reduces both the Mint Fee and the occupation of the Bitcoin network.

Furthermore, BRC-721 offers the option of storing images in off-chain services like IPFS. This not only frees up space on the Bitcoin network but also enables each token to have flexible attribute information.

2. BRC Compatibility

BRC-721 employs a protocol format akin to BRC-20, leveraging JSON content to delineate distinct functionalities, which substantially augments the flexibility of NFTs. For instance, it can effectuate the Reveal function through an Update operation, and effectively index an NFT of a Collection using the Tick field.

3. NFT Ecosystem Compatibility

NFTs conforming to the ERC-721 standard are currently garnering more popularity in the market. BRC-721 utilizes Token URI and Metadata specifications that are congruent with those of ERC-721, facilitating swift integration with the existing NFT ecosystem. Unlike native Ordinals, which do not support fields such as Trait, BRC-721 can accommodate the definition of NFT attributes and rarity.

Thus, in comparison to native Ordinals NFTs, the use of BRC-721 enables the realization of more intricate functionalities, the integration of external resources into Ordinals, and superior extensibility. It offers a more diverse range of application scenarios and is notably developer-friendly.

Summary

BRC-721 is an experimental standard that presents significant improvements over native NFTs in terms of cost reduction, network space optimization, and compatibility with existing NFT platforms and tools. Such advancements hold potential for substantial impact on the Bitcoin ecosystem. Analogous to the influence ERC-721 has exerted on the Ethereum ecosystem, the BRC-721 protocol signifies new possibilities and avenues for growth within the Bitcoin ecosystem.