bitcoin-dev

Purely off-chain coin colouring

Purely off-chain coin colouring

Original Postby Aymeric Vitte

Posted on: February 4, 2023 11:36 UTC

In a Bitcoin-dev thread, users are discussing the challenges of NFTs and how to avoid scams.

One user proposes using double hashing and third-party timestamps to avoid theft or duplication of NFTs. The discussion then moves onto the topic of blockspace and the desirability of keeping it small so that bitcoin remains accessible to all. The use of off-chain content is considered by some as a solution, but this approach also has its own problems such as the difficulty of protecting users and the lack of scarcity for collectors. One proposal is to require proof of work or payment over Lightning for hosting an NFT, making creators pay for their digital assets' preservation. The conversation concludes with the suggestion of using a Nostr relay and proof of work to provide a spam-free feed of minted digital artifacts. The discussion also considers the possibility of adding support for social legitimacy and lightning-based patreon-type setups.The author is discussing an off-chain NFT protocol and responds to a comment about the association of a particular satoshi with a digital asset. The author explains that in the off-chain scheme, the "digital asset" includes the ordinal that controls ownership and is identified by the hash of its contents, including that ordinal's identity - so there is an indelible association with a particular satoshi, despite it being an off-chain NFT protocol.The author provides an example of two identical digital assets with unique identifiers that are each indelibly linked with particular satoshis. The author notes that there is nothing stopping someone from minting the exact same content to two different ordinals or from copying the content. However, the only truly unique thing is the specific hash and the specific content that generated the hash. The relationship goes both ways in comparison to inscriptions where you keep the association as long as you have bitcoin's historical blocks. The author concludes by stating that the off-chain approach seems better aligned with incentives, with the people who gain the benefit from that association paying the cost of preserving it. The author provides links to their CV, LinkedIn, GitHub, and various projects they have worked on such as a Universal Coin Swap system based on Bitcoin and a bitcoin NFT system.