Meanwhile, an upcoming addition to Stacks' NFT ecosystem is Satoshibles, a collection of NFT avatars that currently lives on Ethereum, although it is based on the pseudonym of Bitcoin creator Satoshi Nakamoto. NFTs function as cryptographic tokens, but unlike cryptocurrencies such as Bitcoin, NFTs are not exchangeable with each other, so they are not fungible. Years ago, before anyone knew what an "NFT" was, visual assets were tokenised and shared via Counterparty, a protocol built on top of Bitcoin. According to the Stacks dashboard, which only lists a handful of total projects, the most traded NFT collection of the last 24 hours is Bitcoin Birds, which has had 16,651 STX traded in the last 24 hours.
The lack of exchangeability (fungibility) distinguishes NFTs from blockchain cryptocurrencies, such as Bitcoin. Just as Stacks can enable Bitcoin-based DeFi protocols without wrapping BTC for use on Ethereum, its smart contract capabilities can also power NFTs backed by the security and liquidity of the Bitcoin network. While all bitcoins are the same, each NFT can represent a different underlying asset and therefore have a different value. The concept of Bitcoin-backed NFTs is not entirely new, but the framing is new and the market has changed and matured considerably.
Brittany Laughlin, executive director of the Stacks Foundation, told Decrypt that she "has seen an increase in NFTs created on the platform lately, with creators saying they "want to link them to the Bitcoin blockchain." While Bitcoin was hailed as the digital answer to currency, NFTs are now touted as the digital answer to collectibles, but many sceptics fear they are a bubble waiting to burst. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also supports these NFTs, which store additional information that makes them function differently from, say, an ETH coin.