Cryptocurrencies, blockchain, NFT and new trends

Bitcoin NFT marketplace using RGB protocol launches, CEO calls BRC-20 tokens a dumb ‘experiment’

Companies • May 18, 2023, 12:52PM EDT

Quick Take

  • DIBA is launching what it says is the first Bitcoin NFT marketplace to leverage RGB smart contracts.
  • Its CEO called BRC-20 tokens “dumbest technical experiment in crypto” amid robust interest in both the tokens and Ordinal NFTs.
  • The company wants to foster the migration of tokenized assets like NFTs from Ethereum to Bitcoin.

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With interest in tokenized assets on Bitcoin at an all-time high amid massive growth in both the trading volume of Ordinals and BRC-20 tokens market capitalization, a Tim Draper-backed NFT marketplace has announced its launch.

U.S.-based DIBA, an acronym for Digital Bitcoin Art and Assets, said it’s rolling out what it calls “the first Bitcoin NFT marketplace” to leverage RGB smart contracts. The RGB protocol is designed to provide “enhanced security, privacy, scalability, and reduced transaction fees” while making it easier to tokenize assets on Bitcoin, said DIBA’s founder and CEO Gideon Nweze.

“This marks a major milestone in the transition of the internet onto Bitcoin,” Nweze said. “This will revolutionize Bitcoin since it is highly compatible with existing Bitcoin infrastructure. You can think of DIBA as a gateway to what’s possible on Bitcoin.”

Nweze, although bullish on Bitcoin’s potential, hasn’t been thrilled by recent innovations like Ordinals and BRC-20 tokens, though they demonstrate “there is demand for such assets” on the popular blockchain, he said.

“BRC-20 is the dumbest technical experiment in crypto, and I have been around for some time,” said Nweze. “Ordinals and BRC-20 tokens are basically trying to force Ethereum on Bitcoin. In practice, it’s inefficient, clunky, and not as effective as it could be.”

DIBA’s launch includes promoting BitMask, a “Bitcoin-only” crypto wallet that can “hold music and art unique digital assets,” or UDAs, the company said in a statement. With the backing of Draper Associates, a venture capital firm, one of DIBA’s missions is “to bring Bitcoin utility to the masses through enabling the exchange of UDAs,” the company also said.

Another of Nweze’s main goals includes fostering a mass migration of tokenized assets like NFTs from Ethereum to Bitcoin. He also thinks the move could help avoid regulatory complications in the U.S.

“Bitcoin is the only asset considered not a security by the SEC, and smart contracts that inherit Bitcoin’s properties might be viewed favorably by the regulators,” he said.