Cointime

Download App
iOS & Android

NFT 101 | What are Ethscriptions?

Validated Project

The introduction of Bitcoin Ordinal Inscriptions has had a tremendous impact on the Web3 area. Countless Inscriptions have been created, motivating well-known projects to move from Ethereum and Solana to Bitcoin.

Ethscriptions, a recently introduced (and swiftly accepted) protocol that permits the creation and distribution of digital entities on the Ethereum blockchain (as long as they’re under 96 kilobytes in size), also appears to have been influenced by ordinals.

Since its June 17 introduction, Tom Lehman, a co-founder of Genius.com, has generated over 130,000 Ethscriptions, demonstrating the innovation’s popularity. Lehman also unveiled Ethereum Punks, a collection of 10,000 Punks that were all claimed in a matter of hours, to heighten the frenzy.

But how exactly do Ethscriptions work, and how do they compare to Ordinals?

Ethscriptions are a new method for creating on-chain digital artifacts on the Ethereum blockchain. They were launched in June 2023 as a way to store collectible digital artworks directly within Ethereum transactions.

Unlike ERC-721 NFTs which have their own smart contracts, Ethscriptions harnessing Ethereum “Calldata” — a container for data transmitted alongside an Ethereum transaction

To inscribe non-financial data directly onto the Ethereum main chain eg. off-chain media via a URI pointer.

Some key advantages of Ethscriptions include potentially lower costs by avoiding smart contracts, while still allowing provable digital scarcity since they are immutable records on Ethereum. However, a potential downside is an Ethereum upgrade could prune old call data, affecting their longevity.

Ethscriptions function by allowing users to record non-financial information on the Ethereum blockchain. The protocol operates based on three key rules:

1. A successful Ethereum transaction must include valid and unique data URI.

2. To transfer a valid Ethscription, the sender must be its owner, and the Ethereum transaction must include a valid Ethscription transaction hash in its input data.

3. The uniqueness of URIs requires that the content doesn’t match that of an Ethscription from a previous block or a transaction in the same block.

A notable aspect of Ethscriptions is the requirement for a 96KB file size for a single asset. As per creator Tom Lehman, Ethscriptions currently support only image storage, with plans to expand to other file formats in the future.

Ethscriptions differ from conventional NFTs in two important ways. As discussed earlier, ethscriptions are kept in transaction calldata. The ability to save data at the transaction level might allow Ethscriptions to be cheaper than NFTs.

Furthermore, unlike regular NFTs, Ethscriptions lack smart contract logic, which makes them less composable. The physics of Ethscription storage, however, may be their greatest weakness. A proposal to reduce transaction calldata is included in the Ethereum “Purge” update (EIP-4444), which could have an impact on how long the Ethscription storage format lasts.

Bitcoin Ordinals also allows creating unique digital artifacts by assigning identification numbers to satoshis based on the blockchain transaction history. Ordinals build provenance into tokens themselves.

In contrast, Ethscriptions focus more on using transactions as a storage mechanism, while the artwork resides off-chain. Both models avoid minting new tokens, leveraging the base blockchain transactions instead.

A key difference is Ethscriptions are simpler and quicker to create, not relying on the ordinal math used to trace satoshis. However, Ordinals may offer better longevity as inscriptions are directly written into Bitcoin’s UTXO set, while Ethscriptions rely on calldata remaining unpruned.

There are also some concerns around imagine copyright with Ethscriptions since they point to generic URLs rather than storing media directly on-chain like Ordinals. Overall though, both show how base blockchain transactions can enable new digital artifact models without bloating the state with endless new tokens.

It remains to be seen whether Ethscriptions gain lasting traction or end up as more of a short-term novelty. However, they highlight Ethereum’s ongoing technical innovation in response to developments like Ordinals on Bitcoin. This ongoing interplay between the two networks will likely continue driving new blockchain use cases and models.

While still early, digitally scarce artifacts created at the base transaction layer demonstrate the deeper programmability of blockchain beyond just payments. Ethscriptions offer Ethereum’s unique take on this growing realm of on-chain digital ownership and creativity.

NFTScan is the world’s largest NFT data infrastructure, including a professional NFT explorer and NFT developer platform, supporting the complete amount of NFT data for 20 blockchains including Ethereum, Solana, BNBChain, Arbitrum, Optimism, and other major networks, providing NFT API for developers on various blockchains.

Official Links:

NFTScan: https://nftscan.com

Developer: https://developer.nftscan.com

Twitter: https://twitter.com/nftscan_com

Discord: https://discord.gg/nftscan

Join NFTScan Connect Program

Comments

All Comments

Recommended for you

  • Cointime June 22th News Express

    1. 21 million LINK flowed out of the Chainlink non-circulating supply contract 3 hours ago, equivalent to approximately US$295 million

  • Bitcoin’s blockchain bandwidth utilization exceeds 90% for the first time since April halving

    Since the halving event in April, the blockchain bandwidth usage rate of Bitcoin has exceeded 90% for the first time. The increase in bandwidth usage after the halving is mainly attributed to the adoption of new token standards, including Runes and BRC-20. Dune Analytics data shows that the transaction volume involving these two token standards has significantly increased, especially on April 23, when the transaction volume of Runes exceeded 750,000.

  • Rapper 50 Cent claims that his X account was hacked, and the hacker promoted cryptocurrency and defrauded about $300 million

    On June 22nd,famous rapper Curtis James Jackson III (stage name "50 Cent") claimed that his former Twitter account and website were hacked, resulting in hackers promoting a cryptocurrency scam and defrauding victims of $30 million.The hackers created a new cryptocurrency called "GUNIT" and used 50 Cent's large following (approximately 12.9 million fans) to attract more investors and drive up the price, then drained its value, causing the token price to plummet to $0.00016. On June 21st, 50 Cent posted on Instagram to his 32.8 million fans about the hack and admitted that a large amount of funds from victims had been lost from the project. "Twitter quickly locked my account. Whoever did this, got $30 million within 30 minutes," 50 Cent claimed, stating that he had no involvement with this cryptocurrency scam.

  • Trump campaign returns excess donations to Gemini

    Donald Trump's campaign team has returned donations exceeding the legal limit to the United States cryptocurrency exchange Gemini's co-founders Cameron Winklevoss and Tyler Winklevoss. Earlier, Gemini co-founders Cameron Winklevoss and Tyler Winklevoss tweeted that they had each donated 1 million US dollars worth of Bitcoin (15.47 BTC) to the Trump campaign, exceeding the maximum limit of $844,600 per person that the Trump committee can legally accept.

  • Glassnode: Bitcoin miners have not "completely sold off" and may be in the break-even period

    Glassnode Chief Analyst James Check said that Bitcoin miners may be struggling, but they may not have fully entered a bear market level. They mine 10 bitcoins and then sell 10 bitcoins. Miners must adapt and adjust fees to become their main source of income, forcing the industry to further innovate and apply effective capital management.

  • Jupiter Lianchuang: A new PPP mechanism needs to be invented to prove that there is a better alternative than PVP

    Meow, co-founder of Jupiter, posted on social media stating that PPP (Participant-Platform-Protocol) is very important, otherwise they will devour each other before achieving all the dreams of changing the world.Currently, incentive measures strongly favor PVP (Participant-Value-Protocol), but everyone feels worse about our industry than ever before. Now we need to invent new PPP mechanisms and use them to prove that there are better alternatives than PVP, otherwise we will just blame each other all day and say, "Yes, that's how the game is played."

  • DePIN developer Verida completes $5 million seed round

    Verida, a DePIN network developer, has completed a $5 million seed round of financing with a post-investment valuation of $50 million. Participating investors include O-DE Capital Partners, ChaiTech Ventures, Simurg Labs, Gate Labs, HASH CIB, Bison Capital, Amesten Capital, and Evan Cheng from Mysten Labs. The new funds will be used to develop Verida's personal data storage infrastructure, providing decentralized storage and encryption services for user personal information.

  • He Yi: Projects with high valuations cannot only be judged by market value, the era of haircuts may be coming to an end

    Binance co-founder He Yi wrote on Binance Square: "2017 was the era of ICOs, where you could make money as long as you got a share. In 2021, with the rise of DeFi, as long as you move fast, you can make money by participating in yield farming. Buying new instead of old is also a typical feature of this period. However, now IEOs are generally considered to have legal risks in most countries, so they can only be airdropped and priced by the market. This means that if there is a large circulation, the opening price of the project will be relatively stable, such as BB and LISTA, but compared to 2021, the rise is still too fast, lacking sufficient washing-out process.

  • A whale deposited 12.66 million WIFs into Binance in the past two days, equivalent to about 23.4 million US dollars

    According to Lookonchain monitoring, in the past 2 days, a whale has deposited 12.66 million WIF coins into Binance, which is equivalent to approximately 23.4 million US dollars.

  • Five suspected Sun Yuchen addresses have accumulated more than 405,000 ETH in the past 7 months

    According to @ai_9684xtpa, five addresses suspected to belong to Sun Yuchen accumulated 405,437 ETH between December 2023 and June 2024, with a total value of 1.42 billion US dollars and an average cost of approximately 3010 US dollars.