Bitcoin-Based NFTs: Yuga Labs Unveils TwelveFold

Yuga Labs, known for their highly popular Bored Ape Yacht Club (BAYC) NFT collection, recently revealed their plans on Twitter to release a limited edition NFT collection called TwelveFold, which will be based on Bitcoin. In addition,  the collection will embed satoshis on the Bitcoin blockchain into 300 unique pieces of generative art.

Introducing TwelveFold. A limited edition collection of 300 generative pieces, inscribed on satoshis on the Bitcoin blockchain.https://t.co/aFWEIhzqcI pic.twitter.com/PjWABKKBr4

— Yuga Labs (@yugalabs) February 27, 2023

Yuga Labs will launch the TwelveFold auction later this week, but they will only disclose the exact timing 24 hours in advance. Bidders must use bitcoin for their offers, but Yuga Labs has warned that wallets do not currently support the transfer of individual satoshis.

Therefore, If digital assets are stored together with other BTC holdings, this warning highlights the potential risk of losing the inscribed Satoshi.

Bitcoin-Based NFTs Gain Popularity

BTC-based NFTs, also known as Ordinals, have been gaining popularity recently, with the inscription of the 100,000th ordinal on Valentine’s Day. Data from Dune Analytics shows that the number of inscriptions has surpassed 200,000.

Therefore, you can inscribe ordinals, which are digital assets similar to traditional NFTs, into a single Satoshi – the smallest denomination of Bitcoin.

To inscribe the data of the content stored, the inscription process involves writing or engraving it into the witness of the Bitcoin transaction. The introduction of the SegWit upgrade to the BTC network in 2017 made this witness possible.

Decrease In Bitcoin Miner’s Fee

As the popularity of Ordinals has grown, fees on the Bitcoin network have skyrocketed, with more than $1 million in fees paid to miners on the BTC network.

However, since February 20, the BTC miner’s fee has fallen from $54k to just over $11k at present. Casey Rodarmor, the creator of Ordinals and a former BTC Core contributor, stated that they have not been shipping features fast enough to keep the mempool full, and they regret their slowness.

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Yuga Labs’ TwelveFold collection may potentially reignite the craze for BTC-based NFTs. Bitcoin wallet Xverse has also joined the trend and launched support for Ordinals, further indicating the growing adoption of this new type of NFT.