Elon Musk Weighs in on NFT Technology — Here’s What He Thinks

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Picture Supply: YouTube/Fox Information

Elon Musk has once more shared his opinion concerning the present construction of non-fungible tokens (NFTs), noting that embedding JPEG pictures right into a blockchain can set up unique possession for fans.

On December 27, Musk responded to a touch upon his platform, X (previously Twitter), the place DogeDesigner questioned if “anybody nonetheless remembers NFTs.” This prompted a playful jab from Adrian Dittmann, who humorously likened NFTs to “net hyperlinks resulting in knowledge you don’t really possess.”

In a fast retort, the tech mogul underscored the significance of encoding JPEGs on the blockchain.

This remark aligns with Musk’s earlier assertion on The Joe Rogan Experience Podcast on October 31, the place he advocated for encoding JPEGs within the blockchain to forestall loss in case the internet hosting firm goes out of enterprise.

Whereas NFTs gained appreciable consideration and traded for thousands and thousands of {dollars} throughout the 2021 bull market, Musk’s critique displays a complicated understanding of how NFTs function.

Within the NFT market, particular blockchain networks make the most of centralized databases to retailer JPEG pictures linked to a singular non-fungible token hash ID. When buyers commerce or maintain NFTs, they take care of and possess these hash IDs, not the precise media content material.

The connection between the NFT and the media it represents depends on info saved in a centralized database. Nevertheless, some blockchain infrastructures and initiatives have adopted a distinct method by instantly embedding widespread NFT objects, resembling JPEGs, motion pictures, and music, into the blockchain.

For Occasion, Leonidas, a widely known NFT fanatic, remodeled a video clip containing Musk’s remarks into an Ordinals Inscription. This course of entails encoding the video with a singular NFT on Bitcoin’s blockchain.

In contrast to conventional NFTs, this explicit NFT on Bitcoin’s blockchain permits buyers to personal and commerce it instantly with out counting on a centralized database.

Bitcoin Ordinals Capabilities Appeals to NFT Fanatics

Bitcoin Ordinals signify a revolutionary fusion of NFT knowledge inscription on the blockchain. This modern method entails uniquely inscribing digital content material, resembling pictures and movies, onto the Bitcoin blockchain, leading to a particular digital asset linked to a particular non-fungible token.

The impression of Ordinals on the NFT panorama is profound. By integrating NFT performance with the strong and widely known Bitcoin blockchain, a brand new stage of safety, transparency, and decentralization is launched to the NFT ecosystem.

In response to a complete 80-page report released by Coinbase on December 14, there was a major shift in NFT actions in direction of the Bitcoin chain.

This means that extra NFT fans have shifted focus to Bitcoin Ordinals attributable to its resilient basis for proudly owning and exchanging digital belongings inside the NFT panorama.

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