Elon Musk Criticizes NFTs for Not Being Fully On-Chain
During his recent appearance on the “Joe Rogan Experience” podcast, Elon Musk expressed his criticism of non-fungible tokens (NFTs). He pointed out that many NFTs are not fully stored on the blockchain but instead rely on external servers, which puts them at risk. Musk suggested that the actual artwork should be encoded in the blockchain to ensure its permanence even if the hosting company goes out of business.
This criticism is not new, as it has been a common concern since the early days of the NFT boom. Several instances have highlighted this issue, such as when FTX’s servers went offline and many NFTs stopped working correctly. However, it’s important to note that not all NFTs suffer from this problem. Some projects on Ethereum store their artwork on-chain, ensuring its immutability and censorship resistance.
Bitcoin’s Ordinals Protocol Offers Fully On-Chain Artwork
Contrary to Musk’s criticism, there is an NFT-like ecosystem where all artwork and media are fully stored on-chain—Bitcoin. The Ordinals protocol allows users to inscribe artwork and other media directly onto the Bitcoin blockchain. Unlike Ethereum’s smart contracts, Ordinals ties the artwork to a single satoshi and gives it a unique inscription number. This ensures that assets are permanently inscribed on the blockchain as long as the Bitcoin network remains live.
Musk’s comments sparked enthusiasm among Bitcoin advocates and Ordinals supporters, who believe that it proves the superiority of Ordinals over traditional NFTs. They argue that Bitcoin’s secure open-source monetary network makes it an ideal platform for fully on-chain artwork.
Community Response in Favor of Ordinals
The community response to Musk’s comments has been largely positive for Ordinals. Many individuals, including prominent figures in the crypto space, have expressed their support for fully on-chain NFTs. They believe that Ordinals provides an elegant solution to one of the most common criticisms of NFTs.
One person even inscribed the video clip of Musk’s comments onto Bitcoin as a demonstration of the benefits of fully on-chain NFTs. The response from the community highlights the growing interest and adoption of Ordinals as a preferred platform for NFTs.
Hot Take: Elon Musk Joins Criticism of NFTs’ Lack of On-Chain Storage
Elon Musk’s recent criticism of non-fungible tokens (NFTs) not being fully stored on-chain has resonated with many in the crypto community. While some NFT projects on Ethereum and other blockchains do store artwork on-chain, there is a prevalent concern about relying on external servers for hosting. Musk’s comments have sparked a renewed interest in Bitcoin’s Ordinals protocol, which offers a fully on-chain solution for artwork and media. Supporters argue that Ordinals’ approach provides a more secure and permanent storage option compared to traditional NFTs. The positive community response indicates a growing preference for fully on-chain NFT platforms like Ordinals.
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