Bitcoin Bandits Burn $95K CryptoPunk NFT, Revived as Ordinal Inscriptions

We’ve seen huge progress in Web3 lately, but the idea of transferring NFTs from one blockchain to another remains unanswered. 

Because of this unsolvable dilemma, Bitcoin Bandits experiments with an alternative method that transfers the NFT “symbolically” instead of “literally.” 

Interesting, right? Let’s head on below to learn more! 

THE ALPHA

According to Etherscan, CryptoPunk #8611 was sold last Saturday for approximately 55 Ethereum, equating to $95,186.30 at the time of writing. 

And hours later, after it got sold, the NFT was burned into a wallet address, permanently removing the NFT from the ETH circulation. 

Since then, inscription 12,456,749 suddenly emerged in the Bitcoin blockchain, an NFT asset comprising the same image as CryptoPunk #8611. 

Moreover, this decision was a community-led effort by Wolf Capital Developer Nathan Stein and holders of Bitcoin Bandits.

MORE DETAILS ABOUT THE BURNING PROCESS

If you’re curious about its development, this innovative idea became possible through “Teleburning”.

Teleburning is a symbolic process that involves burning an NFT on one blockchain and then creating a new NFT asset on another blockchain. 

In Bitcoin Bandits’ case, the community burned CryptoPunk #8611 into a wallet address that nobody can access or control.

Once it got burned, they created a new NFT that resembles the same visuals as the original CryptoPunk NFT, but this time on the Bitcoin blockchain with the help of Ordinals Protocol. 

WHAT ABOUT THE ORIGINAL NFT’S METADATA?

Although Teleburning makes the transition possible, there are some limitations that people need to consider. 

The process of Teleburning does not actually transfer the original NFT from one blockchain to another.

This means that the original data associated with the CryptoPunk NFT still exists on the Ethereum blockchain and is visible to anyone.

So, the newly minted inscription NFT is not a direct copy of the original NFT but rather a new one created to represent the original NFT on a different blockchain.

WEB3 COMMUNITY SENTIMENTS

Despite the idea being bullish for Web3, this may be an eye-opening moment for the Ethereum blockchain. 

If we put ourselves in Bitcoin Bandits’ shoes, let’s ask ourselves this question,Why do we want to spend dollars to experiment with this idea?

Aside from the development of Ordinals inscription, did the organization see something more bullish in the Bitcoin blockchain? Are they planning to convince other projects to migrate to Bitcoin? 

Although these questions still remain a mystery, it’s a vital sign that Ethereum should step up its game. 

CONCLUSION

NFT transitions from one blockchain to another give people more opportunities to trade their NFTs.

But what this will mean for the existing blockchains is still an ongoing process that we need to keep an eye on.

To keep updated on the latest news in Web3, you can always see our latest news article here.

In the meantime, what do you think about this update?

Editors’ Note: The Mega Maxi’s articles and its external content are not financial advice. Always DYOR.