Current Status: PROPOSED STANDARD
This protocol does not exist yet. This documentation describes what we believe should be built.
The Problem We Want to Solve
Bitcoin NFTs are too expensive and slow
- 10,000 NFT collection costs $25,000+ to inscribe
- Each trade takes 10+ minutes to confirm
- Trading fees are $2-5 per transaction
- No instant settlement option
What We Want This Protocol to Enable
1. Cheap NFT Creation
Use recursive inscriptions to reference parent traits instead of duplicating data:
- Inscribe each trait once (background, body, eyes, etc.)
- NFTs just reference trait IDs (500 bytes vs 50KB)
- Target: $2,000 for 10K collection instead of $25,000
2. Instant Trading via Lightning
Enable sub-second NFT trades through Lightning Network:
- Payment settles instantly via Lightning
- Ownership transfer queued for next block
- HTLC ensures atomic swap
- Target: <10ms payment, 10min ownership finality
3. Marketplace Detection
Simple protocol marker for marketplace integration:
{
"p": "sparkle",
"v": 1,
"lightning": true
}
Marketplaces can detect and show Lightning badge on compatible NFTs.
What Needs to Be Built
For Developers
- Indexer that detects Sparkle protocol markers
- Integration between ord and Lightning node
- HTLC coordination for atomic swaps
- State checkpointing mechanism
For Users
- Wallet that supports both ordinals and Lightning
- Simple UI for instant NFT trading
- Clear indication of Lightning-enabled NFTs
- Transparent fee structure
For Marketplaces
- Protocol detection in indexer
- Lightning invoice generation
- Payment monitoring via spark.money or similar
- Badge/indicator for Lightning-enabled NFTs
How It Could Be Adopted
Natural Adoption Path
- Proof of Concept: Someone builds a working demo
- Cost Savings Drive Interest: 92% reduction attracts creators
- One Major Collection: High-profile project uses it
- Marketplace Integration: One marketplace adds support
- Network Effects: More users demand Lightning trading
Why It Makes Sense
- Bitcoin has Lightning: Infrastructure already exists
- spark.money works: Lightning payments are proven
- Recursive inscriptions work: Technology is ready
- Cost pressure is real: $25K for 10K NFTs is prohibitive
- Speed matters: 10-minute trades limit volume
What We're NOT Claiming
- This is NOT built yet
- There is NO SDK available
- There is NO production deployment
- There are NO partnerships confirmed
- This is a PROPOSAL, not a product
Next Steps for Someone Who Wants to Build This
- Test recursive inscription cost model
- Build proof-of-concept indexer
- Create Lightning HTLC coordinator
- Deploy test collection on testnet
- Measure actual costs and speeds
- Open source the implementation
- Propose to Bitcoin/Ordinals community