After the popularity of NFTs skyrocketed on intelligent contract blockchains in 2021, Bitcoin alum Casey Rodarmor created Ordinals to bring this same unique experience to the granddaddy of all blockchains. An Ordinal is a single satoshi minted with data using a convention of ordinal theory.
Basics
When creating and minting Ordinals, the best way to consider them is as a non-fungible token (NFT). NFTs are one-of-a-kind assets that can be traded or sold. Examples include virtual avatars, art, GIFs, trading cards, and video games. NFTs are typically held off-chain and have two components: a tokenID and metadata. On the other hand, Ordinals help uniquely identify satoshis and have their data stored on-chain. Ordinals are a new protocol that allows people who operate Bitcoin nodes to inscribe bits of data on the smallest unit of Bitcoin — satoshis, or sats. Inscriptions allow SATs to become NFTs and can have almost any kind of data that you would find on an NFT, including images, text, video, and more.
To inscribe a satoshi with data, you must create a transaction that includes the Satoshi and the desired metadata. It can be tricky and requires some technical knowledge. It’s also important to remember how the inscription can affect your blockchain. The emergence of NFTs on other blockchain platforms has inspired many to create similar projects on the Bitcoin blockchain. NFTs are becoming increasingly popular as art and collectibles and can represent ownership of digital spaces such as virtual rooms and immersive experiences.
Inscriptions
Bitcoin ordinals are a new feature on the Bitcoin blockchain that adds non-fungible token (NFT) functionality. They allow a user to inscribe content into individual satoshis, the most minor units of Bitcoin. Every ordinal on the blockchain has distinct metadata, unlike NFTs on other platforms that usually refer to off-chain data. It makes them similar to digital artifacts. Inscriptions can create images, audio, videos, or arbitrary content. They can also be used to develop “recursive” ordinals, which inscribe themselves into additional satoshis over time. It allows users to track the recursive ordinals over time, creating an interesting graphical timeline of the NFT’s lifecycle. To mint an Ordinal, a user must have a wallet that supports Bitcoin inscriptions. They must also have sufficient satoshis to pay the inscription fee. Depending on the type of inscription, prices can be as high as 10,000 satoshis per image.
Some experts believe that ordinals could revolutionize Bitcoin, much like NFTs have done on Ethereum and other blockchains. However, others think the process wastes valuable satoshis and needs to fit Satoshi’s original vision of a peer-to-peer cash system. Additionally, it’s important to note that inscriptions are not immune to attacks such as malware and cyber breaches. Ordinal owners must remain vigilant to avoid losing their NFTs through these risks.
Transactions
Ordinals are a new type of non-fungible token-making wave in the Bitcoin ecosystem. The Ordinal protocol, which grew out of the Stacks NFT project, allows individual satoshis on the Bitcoin blockchain to be ranked, ordered, and inscribed with data through inscription. It makes it possible to create a digital artifact on the Bitcoin blockchain that can be traded and used just like other NFTs without needing a separate sidechain or third-party platform. Inscriptions can be anything from a simple image to an entire digital artwork and are immutable and live entirely on the Bitcoin blockchain. The inscription process involves adding extra metadata to a Bitcoin transaction using the OP_RETURN function. This metadata is stored as a part of the witness of the Bitcoin transaction, which is limited to 3MB under the current block size limit.
To get started, users must download and sync the Bitcoin Core wallet and create a specialized Ordinal-compatible wallet. Once a wallet is set up, users must only use it to receive Ordinals and Digital Artifacts. Otherwise, they might accidentally send BTC from the Ordinal-only wallet to other Bitcoin addresses and incur network fees.
Staking
Historically, bitcoin has served as a sovereign digital currency. Ordinals have breathed new life into the blockchain, making it a platform for NFT collections and other token-based innovations. Ordinals inherit the ability to archive data online forever and thus have the potential to become a valuable platform for NFTs, eSports, and other creative projects. NFTs are gaining popularity thanks to fandom, the economics of royalties, and the laws of scarcity. While the underlying technology is a bit complicated, what’s essential is that NFTs give you ownership of a digital creation that can be copied and shared. Still, only you can claim that it’s yours.
First, you’ll need a cryptocurrency wallet to store your NFTs and other cryptocurrencies. Then, you’ll need to purchase some of the cryptocurrency you want to buy NFTs with (most NFTs are ERC-20 tokens on the Ethereum blockchain), either through an exchange or directly from a provider that accepts your preferred crypto. Once you have the cryptocurrency, please send it to an NFT inscription site and wait for your inscription to be minted. You can then download or view your reminder through an Ordinal viewer. Then, you can transfer it to your wallet or resell it through an NFT marketplace.
