Why does it feel like DeFi on Bitcoin is such a nascent idea even though orange coin has existed for 6,147 Days?

🔸 Will Bitcoin ever be home to an on-chain AMM?
🔸 Are bridges the solution to Bitcoin DeFi?

Let's dive into the history of decentralized finance on Bitcoin 🧵

If you're a nerd like me who prefers dense and thought provoking write-ups then click the link below to access 70% more information.

This is a culmination of 2+ months of extensive research 👇🏼
https://medium.com/@jakegallen/history-of-defi-on-bitcoin-c57f8a97e93

Okay, Let's begin!

Nearly a year ago @LeonidasNFT, @adamamcbride, and I hosted Ordinal Theory creator @rodarmor on a Spaces to discuss Rare Sat hunting.

Little did we know this little thing called inscriptions would completely revolutionize Bitcoin 🤯
https://twitter.com/jakegallen_/status/1565467849388216320

7 months later Ordinals have brought a fresh wave of innovation, culture, development, and activity to Bitcoin that hasn't been seen in many years.

🔸 Digital Artifacts (NFTs)
🔸 BRC-20 (DeFi)
🔸 Metaverse
🔸 Rare Sats
🔸 Gaming
🔸 Swaps
🔸 + More

I have written extensively about the history of NFTs, including those from NMC, BTC, DOGE, EMC, and ETH.

For this thread we're going to focus on DeFi and its relationship with Bitcoin, because in fact, the primitives of DeFi were born on BTC.

Read: https://mirror.xyz/jakegallen.eth

But what exactly is decentralized finance (DeFi)?

If you ask outside of crypto the majority would consider Bitcoin to be DeFi, do you?

If you ask the same question to those who have entered the space in the last few years they will likely respond with smart contracts and dApps.

Here we will point out two similar but very different concepts:

🔹 Bitcoin DeFi
🔸 DeFi on Bitcoin

Below is what is generally referenced as Bitcoin DeFi, or the method of bringing Bitcoin (the asset) to other blockchains.

Here is where things get very messy...depending on who you ask of course!

Since Bitcoin lacks standardization builders have gone through a variety of mechanisms in an attempt to build decentralized finance apps ON bitcoin. Where ON is also subjective based on technical merit.

As we progress through the upcoming timeline these key bitcoin upgrades play a huge role on the progression of developer activity.

Note: These 4 upgrades I chose as safe bets to get behind as "breakthroughs" although there are many others.

14 1/2 years of Bitcoin this is where we currently stand (visualized)

Shoutout to @BobBodily for the exceptional graphic!

Note: Dates associated with projects below reference *Mainnet* deployment and NOT when the whitepaper was released.

Project: Mastercoin / @Omni_Layer (2013)

Creators: JR Willett

Details: First decentralized application to launch on Bitcoin. Home of Tether. Creator of the ICO (Raised 4,740 BTC). First Utility token $MSC. Rebranded to OMNI in 2015.

Project: Colored Coins (2013)

Creators: @MeniRosenfeld, @yoniassia, @VitalikButerin, Rotem Lev, and Lior Hakim

Details: Considered precursor to NFTs and Ordinal Theory. First theorized in 2012 and in 2013 V2 Whitepaper which included CEO of @eToro and Founder of @Ethereum.

Project: @CounterpartyXCP (2014)

Creators: @agkrellenstein, Evan Wagner, and Robby Dermody

Details: Home to Spells of Genesis, Rare Pepe, and Fake Rares. Precursor to ERC1155 and platform with early DeFi and token experiments.

Project: RGB (Really Good Bitcoin) [2017]

Creators: @dr_orlovsky, @peterktodd, @giacomozucco, @FedericoTenga, and @dr_ukolova

Details: A proposed protocol that aims to enable the issuance and management of digital assets (colored coins) on the Bitcoin blockchain.

Project: @rootstock_io (2018)

Creators: @SDLerner, @aeidelman, @GabrielKurman, and @dieguito

Details: Bitcoin sidechain that is home to @SovrynBTC, @moneyonchainok, and @tropykus. One of the leading Defi platforms on Bitcoin.

Project: @lightning Network (2018)

Creators: @jcp and @tdryja

Details: A second-layer solution for the Bitcoin blockchain that aims to address some of its scalability and transaction speed limitations. Integrated with @CashApp and @binance.

Project: @Liquid_BTC (2018)

Creators: @Blockstream

Details: A blockchain-based inter-exchange settlement network designed to facilitate fast, confidential, and secure transactions of digital assets between participating exchanges and institutions.

Project: @Stacks (2021)

Creators: @muneeb and @ryaneshea

Details: Previously known as Blockstack, this Bitcoin L2 is home to @ALEXLabBTC, @trygamma, and sBTC. Its PoX algo is a PoW/PoS highbrid. Also the 1st SEC qualified token offering in 2019.

Project: Ordinal Theory (2023)

Creators: @rodarmor

Details: A proposed methodology for identifying each satoshi via a serial number and tracking them in the Bitcoin coin supply, from first minting through their entire lifespan of transactions. Ordinals, BRC-20, and much more.

Project: @TrustlessCom / @NewBitcoinCity (2023)

Creators: @punk3700

Details: A platform that allows users to create and run decentralized applications (dapps) on the Bitcoin blockchain. It is a modified version of the Ethereum Virtual Machine (BVM) that adds smart contracts.

Project: @mintlayer (2023)

Creators: @dn2k

Details: A Layer-2 scaling solution for Bitcoin that uses the Lightning Network to enable smart contracts and decentralized applications (dApps) on the Bitcoin blockchain.

The emergence of DeFi principles on Bitcoin is undeniable, similar to its immaturity of decentralized application is compared to other blockchains.

Enter....Bitcoin DeFi

As alternatives began to emerge around 2015 builders have found ways to leverage BTC in their own protocols.

Project: @bisq_network (2016)

Creator: @manfred_karrer

Details: An open-source, decentralized, and peer-to-peer (P2P) cryptocurrency exchange. It was created to provide a platform for users to trade cryptocurrencies in a private, secure, and censorship-resistant manner.

Project: Atomic Swaps (2017)

Creator: Manfred Karrer

Details: A technology that allows the direct exchange of different cryptocurrencies or digital assets between two parties without the need for an intermediary or a centralized exchange.

Project: @WrappedBTC (2019)

Creators: @BitGo, @KyberNetwork, and @renprotocol

Details: A tokenized version of Bitcoin (BTC) that runs on the Ethereum blockchain as an ERC-20 token. It represents a 1:1 peg with Bitcoin, meaning that one WBTC is backed by one BTC held in reserve.

Project: @renprotocol (2020)

Creators: @bftzhang and @bftzhang

Details: A decentralized blockchain protocol that aims to enable interoperability between various blockchains by providing a trustless and permissionless way to move assets and data across different networks.

Project: @TheTNetwork (2020)

Creators: @keep_project and @NuCypher

Details: Threshold Network is a decentralized application (dApp) that creates trustless and secure multi-signature wallets on the Bitcoin blockchain. This tech allows for a decentralized 2-way BTC <> ETH bridge.

Project: @BadgerDAO (2020)

Creator: @spadaboom1

Details: A decentralized autonomous organization and protocol focused on bringing Bitcoin to decentralized finance. It aims to bridge the gap between Bitcoin and DeFi by creating innovative products and infrastructure.

Project: @InterlayHQ (2022)

Creator: @alexeiZamyatin

Details: A modular, programmable layer between Bitcoin and the multi-chain ecosystem that unlocks decentralized (financial) use cases for BTC. Built on the @Polkadot blockchain.

If you made it this far then congrats you can call yourself a Bitcoin historian 📝🤓

DeFi on Bitcoin or Bitcoin DeFi 🤔

Let me know your thoughts below about this write-up!

🔸 Did you learn something new?
🔸 Does DeFi on Bitcoin have a bright future?
🔸 Will Bitcoin DeFi consume of all of the bitcoins?

You can read the unrolled version of this thread here: https://typefully.com/jakegallen_/PMRwUb6

The Evolution of DeFi on Bitcoin

Let's take a dive through the wild world of Historical NFTs 🌎

But first! If you'd like to watch my live presentation on the History of NFTs then check it out below 👇
https://www.youtube.com/watch?v=reaDc-Kzb00&t=806s

Understanding tokens with history is no easy feat. Navigating the sea of philosophy will set you free!

Blockchains with Historical NFTs (2011-2019): @Namecoin, @CounterpartyXCP, @DogepartyXDP, & @ethereum

(Not pictured: @emercoin, @MonapartyXMP, and some more to be explored)

Just as beauty is in the eye of the beholder, so is value.

But the thing that holds it all together is you!

The highest Historical NFT sales across blockchains.

Don't forget about these Pre-ERC721 assets!

(@Eggs_Namecoin, @SpellsofGenesis, @MyCurioCards, @mooncatrescue, @CryptoKitties, @mitchellfchan Digital Zones, and @EtherRock)

-Some of the first tokenized image collections on @Namecoin began in 2014
-@CounterpartyXCP launched on Bitcoin in 2014
-Etheria launched on Ethereum in 2015

-@MyCurioCards, @v1punks, @cryptopunksnf_1, @mooncatrescue, @dadacreeps, @realms_of_ether, @lunar_token, @CryptoCats26, @CryptoKitties, & @realms_of_ether all launched on Ethereum in 2017

Some important moments in the History of NFTs and the community that supports them.

That moment when the clock struck 12 @PunisherEth

The segmented history of NFT Archaeology.

Understanding these definitions will save you a headache & at least three Twitter arguments.

The most important question that determines how Historical NFT collectors assign value.

You can read the unrolled version of this thread here: https://typefully.com/jakegallen_/bM3GSQx

History of NFTs Presentation

The Ordinal space is scaling at a RAPID pace 📈

Ordinals, PSBTs, BRC-20, Meta-Protocols...WHAT DOES IT ALL MEAN 😱

Bitcoin has not seen this level of developer activity in quite some time. Let's explore some of the experiments that have surfaced during this Ordinal explosion👇🏼

First, let's define some common terms that you may see when Bitcoin builders are referring to their projects.

They may sound the same but there are some slight differences.

It's important to at least understand that they refer to different layers of the tech stack.

BIP: Bitcoin Improvement Proposal

Protocol: Basic sets of rules that allow data to be shared between computers

Standard: Set of rules, conditions, and functions that dictate how a token works

Meta-Protocol: L2 overlay protocol that defines a method for creating data structure

Protocol: Ordinal Theory

Creator: @rodarmor (2023)

Details: January 2023 Ordinals reached Bitcoin Mainnet that could go down as the moment that changed the course of how Bitcoin is used. Inscribe up to 4MB of data inside of individual satoshis all completely on-chain.

BIP174: PSBTs (Partially Signed Bitcoin Transactions)

Creator: @achow101 (2018)

Details: A specific type of transaction format in Bitcoin that allows for the partial signing of a transaction by multiple parties. Ordinal Marketplaces leverage PSBTs to facilitate transactions.

Protocol: DLCs (Discrete Log Contracts)

Creator: @tdryja (2018)

Details: Contract protocol where two or more parties agree to exchange money dependent on the outcome of a certain event as determined by an oracle. Some Ordinal protocols leverage use this.

Meta-Protocol: .namespace

Creator: @satsnames (2023)

Details: A standard for writing names to Bitcoin using ordinals. Also pioneered the social turned technical implementation of "first is first". Since it's launch dozens of .names have surfaced including .btc, .ord, and .xbt.

Standard: BRC-20

Creator: @domodata (2023)

Details: Meta-Protocol that leverages inscribing json txt files onto Ordinals that allows for deployment, mint, and transfer of fungible tokens on Bitcoin. Category reached over $1B Market Cap within 2 months of inception.

Protocol: BRC-20 Staking

Creator: @Brc20Lab (2023)

Details: The BRC-20 staking protocol combines the security of ORC-20 with the stability of BRC-20, utilizing a dual-token model to enable users to passively earn rewards through non-custodial staking.

Standard: BRC-21

Creator: @alexeiZamyatin of @InterlayHQ (2023)

Details: Mint L1 assets like ETH, SOL, DOT and decentralized stablecoins like DAI and LUSD to use on the Lightning Network.

Standard: ORC-20

Creator: @OrcDAO (2023)

Details: Protocol aimed to be backward compatible with BRC-20, to improve adaptability, scalability, and security, and to eliminate the possibility of double spending.

Standard: OP Standard

Meta-Protocols: BRC-20 LPs, Ordinals Decentralized Entities (ODE), Smart Inscriptions, Liquidity Bridge.

Creators: @0xGrug & @M3rl1nOg of @oshifinance (2023)

Details: Decentralized Finance on Bitcoin [OrdFi] (DAOs, DEX, Liquidity Pool, Bridges)

Protocol: Bitcoin-Based Automated Market Maker (BBAMM)

Creator: @Omnisats (2023)

Details: Time-Locked Bitcoin Vaults redeemable for BRC-20 equivalent and leveraged to provide liquidity and trade on DEX.

Standard: BRC-721

Creator: @BRC_721 (2023)

Details: A standard interface to verify the authenticity of bitcoin ordinals collections.

Protocol: Smart BRC-721 by Trustless Computer

Creator: @NewBitcoinCity & @punk3700 (2023)

Details: Trustless Computer lets developers write smart contracts on Bitcoin. Use all dapp types on BTC: NFTs, DeFi, Payments, Gaming, DAOs, and file storage.

Standard: BRC-721A

Creator: @ivantkf (2023)

Details: Inscribing multi-tokens in the pre-mint ticket system on-chain.

Standard: Generative BRC-721

Creator: @0xJerry543 (2023)

Details: Utilizes a "deploy" operation to create a Generative BRC-721 collection with unique traits stored on-chain, cutting down 50%-90% of block space usage.

Standard: BRC-721E

Creator: @OrdinalsMarket_ and @BitcoinMiladys (2023)

Details: Bridge your ETH NFTs to Bitcoin (Ordinals) through a one-way bridge and get listed on Ordinals Market with custom collection.

Standard: BRC-1155

Creator: @BRC1155 & @ivantkf (2023)

Details: Deploy the ERC-1155 standard from Ethereum to Bitcoin Core to minimize the inscribing costs to achieve ownership and explore more possibilities in Ordinals Inscriptions.

Standard: BRC-4907

Creator: @ivantkf (2023)

Details: Deploying the ERC-4907 standard from Ethereum to Bitcoin Core to extend the future use cases of rental inscriptions and explore more possibilities in Ordinals Inscriptions.

Honorable Mentions that exist on Bitcoin or are derived from Ordinals or BRC-20.

@CounterpartyXCP (2014)
@Stampchain (2023)
@litecoin Ordinals (2023)
Doginals (DOGE/2023)
Mordinals (XMR/2023)
Dogecoin Stamps (2023)
SRC-20 (BTC Stamps/2023)
LTC-20 (LTC/2023)
DRC-20 (DOGE/2023)

Are you tired yet? Cause I know I sure am! And the craziest part of it all is that this has all happened within the last 6 months (outside of counterparty of course)

-BitFi
-OrdFi
-Bitcoin DeFi
-On-Chain Bitcoin DeFi

Are we in a cultural and technical Bitcoin renaissance?

Or are we just caught up in yet another shiiiiiiitcoin meta?

Exploring Bitcoin's Ordinal Space

Derivatives have become the forbidden fruit of NFT Land. They are as common as an apple, as sweet as a mango, and spoil as fast as berries. Everybody eats them but not many are willing to talk about it 😳

Let's explore an uncommon type of fruit.....Historical NFT derivatives 🥝

@WRabbit1111, tell me what a derivative is.
https://twitter.com/WRabbit1111/status/1644059235494547456

Jake, tell me what a Historical NFT derivative is.

This is again one of those R&D adventures you travel down only to realize that by the end of it you have more questions than answers.

There are no right answers here. Just some thoughts and appreciation for the love of education.

If you want to be REAL honest. Rare Pepe is likely the first "derivative" project. There are hundreds of cards that are "derived" from an original item.

Most Historical NFTs are collections and most collections are created by a team.

Most teams crafted their project from a unique vision. Therefore Historical NFT derivatives are crafted from an original vision (to be debated).

The idea of a Historical NFT was born in March 2021 when dozens of OG projects were being rediscovered.

As projects were found, users would show appreciation by creating derivatives of these vintage projects (or they were just trying to secure the bag).
https://twitter.com/jakegallen_/status/1560042567814696961

Okay okay okay! I'll get on with it.

Here's a list of Historical NFT derivative projects that I have found over the last two years.

Do with this information as you wish!
https://twitter.com/jakegallen_/status/1643661389326843905

Original Project: @v1punks / @cryptopunksnfts (2017)

HNFT Derivative: @pridepunks2018 (2018)

Original Project: @mooncatrescue (2017)

HNFT Derivative: @doom_cats (2021)

Original Project: Rare Pepe (2016)

HNFT Derivative: @FAKERARES_XCP (2021)

Original Project: @SpellsofGenesis (2015)

HNFT Derivative: @FAUXSOGS (2022)

Original Project: Blockheads (2014)

HNFT Derivative: @phockheads (2022)

Original Project: Multiple Historical NFT Collections (2014-2018)

HNFT Derivative: @HnftPepe (2022)

Original Project: @LostRobbies by @videodrome

HNFT Derivative: Lost Bizzies by @0xBiZzy (2023)

These are just some of the notable Historical NFT Derivative projects I could find out there.

I don't doubt that there are more, especially with the type of success HNFTs have found over the last two years (don't tell your favorite influencer tho).

Which HNFT derivatives are your favorite? Which ones did I miss?

Let me know in the replies below and i'll see you around for the next Historical NFT thread! 👇🏼

You can read the unrolled version of this thread here: https://typefully.com/jakegallen_/pv7hP2e

Exploring Historical NFT Derivatives: The Forbidden Fruit of NFT Land

IF YOU WANT TO UNDERSTAND HISTORICAL NFTs THIS IS THE ONLY THREAD YOU'LL EVER NEED.

So, what exactly are Historical NFTs? How can something be considered historical if crypto has only existed for 14 years?

I get it, maybe historical was not the best label for this category, here are some alternatives:

-Vintage NFTs
-Early NFTs
-Digital Antiquities
-Old NFTs

Believe it or not many NFT collectors STILL believe that @larvalabs @cryptopunksnfts were the first-ever NFTs, which is not accurate by a long shot.

The first non-fungible asset ever created on a blockchain is bitcoin.bit which was registered on @Namecoin on April 21st, 2011.

What about this NFT Archaeology stuff though? Seems like an easy way for influencers to scoop up old bags and dump on me into oblivion, what's that all about?

This space is full of semantics and ideology. So let's sort out some important definitions before diving deeper.

Historical NFT collectors choose from a wide selection of criteria that assists in evaluating digital antiquities.

Even so much that the weighted criteria will change from project to project.
https://twitter.com/MaficoNFT/status/1581346171028545536

Unlike your traditional pfp project where trait rarity is statistically proven through an algorithm, Historical NFT rarity tends to operate on a spectrum...or a pyramid in this example.

Historical and cultural significance is the foundation of HNFTs.

Sorry, back to the pumping and dumping stuff. Understanding HOW and WHY this claim became a dark cloud over the community is vital.

Let's begin at the birth of NFT Archaeology.

March 12th 2021, which is known as the @mooncatrescue Rediscovery.
https://twitter.com/jakegallen_/status/1560042567814696961

On this day @0xAllen_, @justintrimble, and a few others brought to light a project that was free and had 20,000 remaining mints in the contract.

That day nearly 6,000 unique users rescued 20,000 cats from the moon. Sparking general interest in the historical side of the NFTs.

A few days later @MyCurioCards and @etheria_feed were rediscovered and disproved Larva Lab's long-lasting claim that CryptoPunks were the first NFT.

Leading many, including @DCLBlogger, to wonder what else may be out there?

Over the duration of 2021 over 60 projects would become rediscovered, stemming from 2014-2018 across Namecoin, Bitcoin, Dogecoin, and Ethereum.

Many of these assets were scooped up for literally free + gas.
https://twitter.com/jakegallen_/status/1575518957112479751

As time evolved leaders emerged and the idea of a NFT Historian solidified.

Some found the idea of digging for digital gold exciting, while others found fulfillment through documenting it.

Certainly some of these assets will end up at an auction house while some at a yard sale.

The industry slowly began to mature and communities began to form.

@adamamcbride's NFT Archaeology Discord: https://discord.gg/qwkSxDyfAE

@NFT_Relics Vintage NFT Discord: https://discord.gg/nft-relics

@EmblemVault became a pivotal tool for the Historical NFT community.

Allowing users to "vault" their NMC, BTC, DOGE, & MONA NFTs to sell on OpenSea.

OG Collections @pepe__wtf, @SpellsofGenesis, @Eggs_Namecoin, @bitDomains2011, @DogepartyXDP all have found a home on ETH.

The energy was radiant and @ChristiesInc hopped in on the action by auctioning off a full set of @MyCurioCards to @TaylorGerring for $1.2M.

https://twitter.com/ChristiesInc/status/1443947606258995204?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1443947606258995204%7Ctwgr%5Ebed39bc16546a41bdda6cb05598cf43929fe2ea8%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcryptoticker.io%2Fen%2Fcurio-cards-christie-auction%2F

As we moved into 2022:

-NFT rediscoveries began to drop
-Directories popped up
-Podcasts and Twitter Spaces became more frequent
-Tensions were increasing
-Prices were volatile

https://twitter.com/jakegallen_/status/1597301986470215681

@historics_xyz by @0xSchatz became the go-to Historical NFT directory that gave anybody the ability to discover any Pre-ERC721 across any blockchain from 2011-2018.
https://historics.xyz/

@pepe__wtf became the central hub for anything rare pepes, @FAKERARES_XCP, dank rares, and fake commons.
https://pepe.wtf/

And @hnft_wtf Explorer became the hub for Vintage @CounterpartyXCP assets.
https://hnft.wtf/

Meanwhile the NFT community spent all of 2022 debating:

-Classification of NFTs from 2019-2022 as "Historical"
-The definition of Historical vs. Vintage
-Are Namecoin Assets NFTs
-Token provenance vs. Contract Provenance
-Unlimited mint NFTs
-The commoditization of rediscoveries

Although peering outside of the echo chamber it appears that Historical NFTs are doing just fine.

Timelines and Twitter threads have become the "memes" of the Historical NFT community.

A means to display one's intellect, discipline, and commitment to history.

Many top collectors in the NFT space hold at least 1 Historical NFT grail including @punk6529, @farokh, @seedphrase, @osf_rekt, @DCLBlogger, @6529capital, @mooncat2878 and many more.

Yes, the idea of a Historical NFT can sound ludicrous but to collectors the idea of purchasing history is one of the safest bets.

The community may be contentious at times and bad actors will appear, but history doesn't fade away.

In fact, it tends to increase over time.

If you want to stay up to date with Historical NFTs you'll want to give these accounts a follow:

@LeonidasNFT
@adamamcbride
@WRabbit1111
@jakegallen_
@BlackstarXXI
@g0barry
@EmblemVault
@DocumentingNFT

https://twitter.com/DocumentingNFT/status/1607378958206603267

And then subscribe to these HNFT Podcasts to learn more about those who hangout in the space:

History of NFTs: https://www.youtube.com/playlist?list=PLd5F8uJP3RyZhK71jlYwyYFrmHrK5mG1t

Exploring the Vintage NFT Space: https://www.youtube.com/channel/UCIp9ThXc2vrhIQlVj4O1Zkw

NFT Archaeology: https://podcasts.apple.com/us/podcast/the-adam-mcbride-show/id1410811576

Let me know in the replies below if you enjoyed this thread, any thoughts on Historical NFTs, and any questions you'd like to ask!

Until next time fellow degens.

You can read the unrolled version of this thread here: https://typefully.com/jakegallen_/SRYGljJ

Historical NFT Guide

Provenance has been an value metric since for collectors since the earliest conceptions of value.

As we migrate towards a tokenized world what type of provenance will collectors look for in digital assets to store their capital? 🧠 🧵

In our last meeting we discussed the transition of provenance from a physical to digital, and now tokenized world.

As provenance of ownership and history becomes simplified, tokenization offers a unique set of provenance standards that collectors still debate to this day.

If you'd like a quick refresh you can breeze through the thread here 👇
https://mirror.xyz/jakegallen.eth/fceuaaw_RVaNzRfPWsMkPikZ9n5fvfCBnWlRUkNaX4A

As new valuation criteria enters collectors' perspectives it's important to understand what standards are being formed and then how it applies towards a successful investment.

The remainder of this thread briefly cover how collectors view Historical NFTs across blockchains, but I will recommend that you should dive a bit deeper into the statistics in my @viamirror essay here 🤓👇



Namecoin is the first ever altcoin, which was deployed in 2011.

It was suggested by Satoshi Nakamoto to fork Bitcoin and create BitDNS and was cited by @VitalikButerin in the Ethereum Whitepaper as non-fungible assets.

A storied set of provenance that many collectors look for.

As @Namecoin predates smart contract platforms by 4 years, it does not follow the standard definition of NFT, which wasn't created until 7 years after NMC was deployed.

So what do collectors value on @Namecoin then?

The most valuable metric is the "first registration" of the asset, which is also known as the "Chain of Ownership".

As NMC assets are set to expire every 8 months, if they go unregistered a new UTXO is created upon re-registration.

The expiration factor does deter collectors away due to provenance disruption of the token.

Those who value Chain of Ownership also value:

-Size of Collection
-Collection Type
-Story behind registrations
https://twitter.com/HarryBTC/status/1547626331529105411

Counterparty was the first token creation platform to not posses an expiration mechanic.

This gave pretty much any project an open field to play ball and create history on-chain beginning in 2014.

There are many "firsts" on @CounterpartyXCP:

-@SpellsofGenesis (1st Gaming NFT Project)
-Rare Pepes (1st Decentralized Crypto Art Project)
-Sarutobi Island (1st Independent Interoperable Metaverse)
-Bit Girls (1st Women-Only Collection)
-Memory Chain (1st Japanese Crypto Art)

Capital tends to flow towards these major breakthrough projects in a fairly distributed manner once a collection is chosen.

Without a modern trait rarity system collectors typically allocated towards the first and most storied assets of a project.
https://twitter.com/DoggfatherCrew/status/1617548409082191875

@DogepartyXDP was created in 2014, faded away in 2015, and then was revived in 2021.

Value gravitates towards individual assets that have the earliest timestamp and image attachment.

Double the timestamp provenance.
https://twitter.com/HarryBTC/status/1587185347359899650

When @Ethereum introduced smart contracts it would change tokenized provenance standards forever.

Introducing:
-Smart Contract Provenance
-Token Provenance

Token provenance would go on to introduce social, technical, and ideological standards that are still debated to this day.

Smart Contract provenance is fairly standard. Once the contract is deployed there's a timestamp and source code.

Main value criteria collectors look for in a smart contract:

-Max Supply or Infinite Mint
-ERC20, ERC721, or unique standard
https://twitter.com/tokenfox1/status/1580438935330639872

Things get interesting when you move on to token provenance.

What is important to some may not be as pivotal towards how others may value their historical assets.

Some Token Value Criteria:

-Timestamp
-Cultural Relevance
-Community
-Innovation
-Scarcity
-Trait Rarity

The introduction of smart contracts has brought about a new set of provenance standards unlike anything previously seen in human history. It is not only important to know when the contract was deployed, but also when the tokens were minted and how they have been maintained.


Factors such as rediscoveries, community standards, market dynamics, timeliness, and creator visibility can greatly impact the value of a token. Additionally, direct technical factors such as contract purity, late metadata additions, and wrapper build can all have an impact.


Infinite contracts tend to accrue value to the earliest assets in the collection with a native classification for each project.

-@LinageeDomains (2015 Mints)
-@ensdomains (@PrePunkOfficial)
-@CryptoKitties (Founder Kitties and 2017 Gen 0)

To summarize the most valuable provenance standards:

@Namecoin: First Registration
@CounterpartyXCP: Cultural & Historical Significance
@DogepartyXDP: Token and Metadata Timestamp
@ethereum: Token Provenance + Significance

Wow, what a trip! Hope everybody made is this far through the craziness that is tokenized provenance.

What are your thoughts on valuing Historical NFTs? What is your preference when investing in history?

Lemme know your thoughts below and see you next time around!

The Capital Flow of Provenance

As we've come to understand, provenance is quite important when valuing digital and physical. The tools that humanity has used to diagnose ownership has changed quite drastically over the millenia.

But how will this translate as we move towards a world of tokenization? 🧵

Valuing Historical NFTs ain't as simple as plugging trait rarity into an algo and producing a low % number so you can ape into some alpha.

Collectors tend to pull from a toolkit of criteria that assists in determining where to park capital.
https://twitter.com/MaficoNFT/status/1581346171028545536

As somebody who owned an antique store for two years and now has dwelled in the land of Historical NFTs for two years, I can't help but wonder how we got here.

Extrapolating on that exact idea, what are the similarities between provenance standards across time periods?

I decided it was time to get up to bat and take a swing at an intellectual thought piece surrounding physical, digital, and tokenized provenance.

Sometimes we must find different avenues to overcoming an obstacle, and this time it's abstractly👇
https://mirror.xyz/jakegallen.eth/LNAPbCfmO7ST82Ao-4l9-mW10_dVkNPETlDw_KHRdck

The essay covers three components and i'll summarize it for you

-Physical Provenance (Real World Assets)
-Digital Provenance (Data)
-Tokenized Provenance (NFTs)

Tools required to determine physical provenance:

-Documentary evidence
-Physical examination
-Scientific analysis
-Historical research
-Expert opinions
-Authentication

Tools required to determine digital provenance:

-Digital signatures
-Timestamps
-Digital watermarks
-Hash functions
-Wayback Machine
-Chat Forums

Tools required to determine tokenized provenance:

-Blockchain explorer
-Internet chat history

As determining provenance becomes simplified, technical features of smart contract begin to collector's perspective on how to determine their importance

-Smart contract provenance
-Token provenance

Once the contract is deployed the provenance is fairly cut and dry. There is a timestamp and a contract, pretty easy to understand.

But as we've come to learn overtime, the tokens that are minted from the contract are what goes on to determine the contract's legacy.

Token provenance can also be cut and dry, there's a timestamp and a toke, pretty simple right?

What happens when tokens are minted across 5 years that is accompanied by technical scarcity, community determined rarity, algorithmic rarity, and wrapped in a cultural narrative?

NFT Archaeology has been an experiment of provenance, and the gap between historical studies is decreasing.

Time Difference between the 1st Non-Fungible & Fungible Items in a domain:

Physical: 3.3 Million Years
Digital: Roughly Same Time Period
Blockchain: 2 Years After

Physical world has about 3.3 Million years between the 1st known artifact and the 1st currency system.

Digital world has a same time period from when the 1st website and 1st attempt at a digital currency existed.

Blockchain has a 2 year gap from Bitcoin to the first NFT.

Humanity began with non-fungible assets and ended with fungible assets.

Blockchain began with a fungible cryptocurrency and ended with non-fungible tokens.

As physicals currencies become turn and burn every century, tokenized non-fungibility is begin to proliferate the ecosystem.

Understanding the provenance of the earliest assets will help you see the grander vision as to what's coming ahead. Also may be able to invest wisely!

Well, hope I didn't lose you there! Lost myself a bit there as well.

If you enjoyed this thread or the essay above lemme know in the comments below 👇

Next time we meet we'll look at how the flow of capital may allocate in this new provenance structure.

Until next time! Also shoutout to @MaficoNFT, @PunisherEth, and @WRabbit1111 who I borrowed some of the graphics from 🙏

You can read the unrolled version of this thread here: https://typefully.com/jakegallen_/2KxvZYU

The Transition of Provenance

It's been 1 week since we sold out my first NFT. I

have to say I was completely blown away by the demand and interest in FAKEMIRAGE. Some rookie mistakes were made alongside some success.

Time to discuss some insights and what may be coming as a future collection 🧵 🧠

As @FAKEMEMES_ETH found traction it reminded me of past waves akin to Rare Pepes and Fake Rares, and this movement contained members from both camps.

Coinciding with the "Open Edition meta" fueled by @manifoldxyz
https://twitter.com/jakegallen_/status/1619742264670195712

As I mentioned before, I don't believe this is comparable to the "Nifty Gateway OE meta of 2020" as this recent run is purely operated by "no-code necessary" tooling.

This allows creators to utilize available services and grow as infrastructure improves. Numbers don't lie.

Noting this I created FAKEMIRAGE as a tribute to memetics, pepes, culture and innovation.

I listed 777 NFTs at .01 ETH with an announcement 24 hours prior to mint...
https://twitter.com/jakegallen_/status/1620110048142958592

aannddddd it got botted.... Leaving nearly 70% to 1 individual or group who dispersed 10 across many wallets.

Attempting to follow the culture of a low mint cost with 10 supply max, I didn't want to come in and appropriate the community as a cash grab.
https://twitter.com/jakegallen_/status/1620113391925997568

The floor went from .01 ETH to .08 ETH and now sits around .02 ETH

Unique owners began as 77 and are now over 170.

I've purchased some back and handed them out.
https://twitter.com/jakegallen_/status/1620140966157107200

FAKEMIRAGE has been submitted for Series 0 of @FAKEMEMES_ETH

Make sure to vote and get it into this iconic series ✅

Following my intention to be more creative with tokens this year, I have been thinking of different projects to take on since I entered the space in 2016.
https://twitter.com/jakegallen_/status/1610727286923493376

My intention and still is the magic number 7. Meaning you'll need 7 FAKEMIRAGE to receive the most benefits as to what comes next.

Although now as 1 entity owns half of the supply I will have to work through different mechanisms to implement.
https://twitter.com/jakegallen_/status/1620089273977573376

As the title says, I plan to experiment with some novel ideas that have been loosely attempted by others over the years.

Covering a variety of concepts, categories, and classifications within crypto.

Will any of it work? Who knows.
Will I try and see if it will work? You bet.
Will there be utility? Depends on how you view it.
Will there be value? Providing value across a spectrum is a goal.

Currently I can't share too much without possibly being front run on the concept.

But am currently working through infrastructure, agreements, and ideas with myself and others.

So stay tuned and I'll unveil more info as it's put together. Although there's breadcrumbs that go years back on my TL publicly discussing some of the ideas.

Over the last 6 years I've been working hard trying to bring crypto to Las Vegas when in reality I should have been bringing Las Vegas to the Blockchain.

🎰🎰🎰🎰🎰🎰🎰🎰🎰🎰🎰🎰🎰🎰🎰🎰

You can read the unrolled version of this thread here: https://typefully.com/jakegallen_/qQIDpx2

FAKEMIRAGE and what's next

Tomorrow at 12pm EST I will be releasing my Genesis Meme drop via @manifoldxyz, which also happens to be my first-ever token release!

This will be my submission for Series 0 of the evolving @fakememes_eth collection

Here's why I decided to begin with memes🧵 👇

Details:

Name: FAKEMIRAGE
Supply: 777
Kept: 27
Price: .01 ETH
Max Mint: 10 per wallet
Time: January 30th at 12pm EST / 9am PST

⬇️ ⬇️ Mint ⬇️ ⬇️
https://app.manifold.xyz/c/FAKEMIRAGE


Earlier this year I began minting my Historical NFT essays as a way to familiarize myself with token creation.

I began as a crypto student in 2016, trader in 2017, rekt in 2018, NFTs in 2021, and working at @EmblemVault in 2022.

Next is creation in 2023.
https://twitter.com/jakegallen_/status/1610727286923493376

Many are calling January the "open edition meta" or "meme meta" but I think it's much larger than that.

Yes, OEs on Nifty Gateway started the last NFT bull run but @manifoldxyz didn't exist.

If you're short open editions, you're short Manifold.
(Supply is something to 👀 tho)

Focusing on the "Meme Meta" most may not realize but this is now the 3rd evolution of tokenized memes.

Beginning with Rare Pepes on Counterparty in 2016, followed by @FAKERARES_XCP on Counterparty in 2021, and now led by @punk6529 The Memes on ETH.

Which leads me to believe that a huge opportunity in this meme meta is that it is actually a trend and emerging NFT category that will rival pfp culture.

@fakememes_eth is what I believe to be the first decentralized community art project on Ethereum since @MyCurioCards in 2017.

If you are not caught up on what @fakememes_eth are then review my previous thread below!
https://twitter.com/jakegallen_/status/1618728163428933649

We're now seeing the 3rd iteration of Rare Pepe culture build a familiar project, but now on ETH that offers accessibility, liquidity, and tooling.

FWIW this is not Rare Pepes or even Fake Rares but a migration of culture, experience, and artistic skills to @fakememes_eth.

Studying the History of NFTs has shown me that massive trends tend to emerge very early, fade out, and then eventually find traction during bear markets.

Thriving when tooling and user experience is cleaned up.

Fake Memes posses everything above.
https://twitter.com/jakegallen_/status/1560042567814696961

Series 0 has potential to become something of historical value if this is more than just a meta.

The combination of Fake Meme's culture & experience, @manifoldxyz's creator tools, and the memetic nature of crypto leads me to believe this will be a great risk/return on adventure.

What is my meme style?

To be honest I have no idea. I enjoy a good layered meme wrapped up in multiple levels of meaning.

I'm not what you would consider "aesthetically artistic" but I do understand meme culture, and it's not something that's going to go away anytime soon.

Will my meme have utility?

I have some ideas that I'm going to play with over time but will need some time to learn what it means to be a token creator.

Godspeed to the fadoooooooors out there and let's get this party started  🙏

Jake's Genesis Meme Drop & Thesis

Over the last 24 hours a full set of @fakememes_eth has run from 0.5 ETH to 4 ETH and I've been getting a ton of DMs asking me why and what is happening?

This will be an update thread covering new information and trends that have surfaced over night 🧵

But first you're going to want to review my thread from last night that has now surpassed 20,000 views 👇

Also want to note that I'm just a collector and not a member of the @fakememes_eth. Just been collecting Rare Pepes and Historical NFTs since 2021.
https://twitter.com/jakegallen_/status/1618404315072462853

It all started with @JPegKillah launching a 1 hour open edition mint for "FAKE FACTORY", which is a fake @GrantYun2's "MEME FACTORY" in @punk6529's The Memes collection.
https://twitter.com/JPegKillah/status/1613323423517638656

8 days later @Carsonated launched his first drop of the year "Freedom to Transact?" which is a fake "NakamotoFreedom" in 6529's The Memes collection.
https://twitter.com/Carsonated/status/1616244834729082880

2 days later OG Rare Pepe artist and @FAKERARES_XCP creator @ScrillaVentura launched his own FREEDOMSEIZE which poked fun at his friend @dan_sickles for unloading his Meme bags and then purchasing FREEDOMKEK, which is Series 0, Card 0 of Fake Rares.
https://twitter.com/ScrillaVentura/status/1617272832504758273

Organically @PepenardoStudio and @viva_la_vandal launch their own fake memes days later. Eventually coming to the idea to create @fakememes_eth. Which is a group of Rare Pepe and Fake Rare artists.
https://twitter.com/jakegallen_/status/1618422532658561026

Overnight Freedom to Transact? ran from 0.35 ETH to 2.4 ETH as collectors gobble up all 5 tokens listed above to be able to mint a MasterPass.

Seeing some largest NFT collectors joining the fun like @dingalingts 👀

Here's the alpha and everything you need to know for the upcoming Allow List snapshot.