The emergence of Bitcoin Ordinals in January 2023 has posed significant competition to projects based on Ethereum and Solana. Although Ethscriptions are developed on the Ethereum network, they are inspired by Ordinals. In this article, we’ll explore what Ethscriptions are and how they work.

Overview of Ethscriptions

Introduced on June 17, 2023, Ethscriptions emerged as the brainchild of Tom Lehman, co-founder of Genius.com and host of the Capsule 21 podcast. Operating under the Twitter pseudonym Middlemarch, Lehman drew inspiration from Bitcoin Ordinals to establish this innovative protocol.

Ethscriptions serve as the Ethereum counterpart to Bitcoin Ordinals, representing “NFTs without NFTs.” They enable the sharing of data, currently limited to images, without the need for creating ERC-721 tokens. The creator contends that Ethscriptions are not only “cost-effective” but boast greater decentralization than their token counterparts.

To generate an Ethscription, one transforms an image, not exceeding 96 kilobytes in size, into a specialized code known as a Base64-encoded data URI. Subsequently, this image is transmitted with a 0 ETH transaction to the intended recipient, with the hex data being inserted into the “Hex data” field.

As we have talked about Ethscriptions drawing inspiration from Bitcoin Ordinals, before proceeding further, let’s compare both.

Difference Between Ethscriptions and Bitcoin Ordinals Inscriptions

• Platform Distinction: A significant contrast between Ethscriptions and Bitcoin Ordinals Inscriptions is evident in their respective platforms. Ethscriptions function on the Ethereum network, while Bitcoin Ordinals operate within the Bitcoin ecosystem. This platform disparity has implications for various aspects of their functionality and features.

• Data Storage and Cost-Efficiency: Unlike Bitcoin Ordinals, which stores smart contract transaction data on the Bitcoin network, Ethscriptions utilizes the calldata function to generate inscriptions, making them more cost-effective for artists and creators as they avoid control storage. Additionally, Ethscriptions are designed to mitigate gas fees (transaction costs), a significant concern associated with Bitcoin Ordinals.

• Practical Differences: Practical distinctions also exist in the operational mechanics of the two protocols. Ethscriptions mandate the uniqueness of each image, ensuring that no two Ethscriptions are identical. Conversely, Ordinals permit the use of identical images on different coins.

• File Type Limitations: On the other hand, Ethscription supports a smaller data size, capped at below 96 kilobytes, in contrast to Bitcoin Ordinals, which enables creators to craft inscriptions with sizes of up to 4 megabytes.

• Future Plans: While Ordinals accommodates all types of digital files such as text, video, music, or games, Ethscription is currently limited to images. Nonetheless, there are plans to expand its capabilities to include various file types.

Setting aside their competitive aspects, the inscription models on Ethereum and Bitcoin Ordinals are poised to introduce new trends in the NFT space.

How Do Ethscriptions Work?

Ethscriptions operate through the Ethereum blockchain, where ownership information for each digital artifact is securely stored.

• Crafting Ethscriptions involves executing successful transactions on the Ethereum network, incorporating unique data uniform resource identifiers (URIs).
• Each URI undergoes meticulous crafting to maintain distinct content to ensure unparalleled uniqueness. This innovative approach ensures that no other Ethscription shares identical information.
• The individual initiating the creation of an Ethscription is recognized as its creator, and the transaction recipient assumes the initial owner’s role.

Additionally, the owner holds the ability to transfer their Ethscription to others. To execute such a transfer, one must include the Ethscription’s unique identifier, referred to as a hash, in a transaction. Upon processing this transaction, the sender becomes the new owner of the Ethscription. It’s crucial to note that the file employed for an Ethscription must not exceed 96 kilobytes in size.

Advantages of Ethscriptions

• User-Friendly Interface

Ethscriptions present a user-friendly interface that caters to individuals across various levels of familiarity with blockchain technology. The platform is designed with intuitiveness in mind, offering easy navigation and utilization for creating and selling digital assets. Its user-friendly nature makes it particularly suitable for newcomers entering the realm of NFTs. The processes are streamlined to ensure a seamless user experience, supplemented by clear instructions and guidance.

• Uncompromising Security

One of the notable advantages of Ethscriptions lies in the robust security features inherent in the Ethereum blockchain. Each NFT generated through Ethscriptions is securely stored on a decentralized network, ensuring the uniqueness of each asset and effectively preventing counterfeiting or tampering. The commitment to uncompromising security enhances the trustworthiness of the platform.

• Transparency at its Core

Ethscriptions leverage the Ethereum blockchain to establish transparency as a core feature. This transparency extends to transactions, allowing users to trace the ownership history of each NFT. Utilizing blockchain technology ensures a clear and immutable record of the NFT’s journey from creation to its current status, fostering transparency throughout the process.

• Accessibility for All

Ethscriptions prioritize accessibility, providing a highly accessible platform open to anyone with an internet connection. Importantly, the platform does not demand extensive technical expertise, making it inclusive and welcoming to artists, collectors, and enthusiasts seeking to explore and engage in the dynamic world of NFTs. This emphasis on accessibility broadens the reach of Ethscriptions and encourages diverse participation.

After a brief overview of Ethscription, let’s see how they differ from NFTs in the following section.

Ethscriptions Vs. NFTs

Both Ethscriptions and traditional NFTs have their advantages and disadvantages, rooted in their distinct mechanisms for linking image data to a blockchain address.

• On-chain/Off-chain:

Traditional NFTs typically link image metadata from their smart contracts, while Ethscriptions store the image on-chain in calldata.

• Decentralization:

Ethscriptions exhibit greater decentralization as they do not rely on external hosting and storage, contrasting with the reliance of traditional NFTs on external services.

• Cost:

The simplicity of Ethscriptions, devoid of complex smart contracts, translates into cost-effectiveness, with potential gas efficiency gains of up to 40 times, as suggested by Lehman.

• Composability:

Despite their cost efficiency, the simplicity of Ethscriptions limits their integration with smart contracts, rendering them inherently less flexible than traditional NFTs.

• Image Size:

Ethscription images are restricted to a maximum of 96 kb, in contrast to NFT images ranging from megabytes to gigabytes.

• Infrastructure:

As a nascent development, Ethscriptions currently have less mature marketplaces and support services compared to the well-established ecosystem surrounding NFTs.

• Future-Proofing:

Ethscriptions offer robustness by storing image data on-chain, distinguishing them from NFTs reliant on hosted storage or IPFS. However, a proposal in Ethereum’s ‘Purge’ could lead to the removal of calldata older than a year, requiring a workaround to prevent the potential deletion of Ethscriptions images if the proposal is implemented.

Future Prospects of Ethscriptions

As Ethscriptions continue to gain popularity and position themselves as formidable contenders alongside Bitcoin Ordinals and BRC-20 tokens, industry observers have a lingering question regarding their necessity within the native Ethereum landscape, especially considering the well-established presence of NFTs. Consequently, speculation arises about the long-term potential of this innovation, with many anticipating its success will ultimately depend on widespread adoption within the community.

Despite these uncertainties, Lehman remains optimistic about Ethscriptions’ future, envisioning them carving out a distinctive place in the evolving landscape of Ethereum scaling. However, it is worth noting that some members of the global NFT community adopt a more cautious stance on the prospects of Ethscriptions.

As of the current moment, Ethscriptions have not led to a notable surge in gas fees. Yet, the question of whether they will achieve a transaction volume comparable to Ordinals remains uncertain, adding an element of unpredictability to their future trajectory.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.