Bitcoin Ordinals is a new and innovative way of deploying non-fungible tokens (NFTs) natively on the Bitcoin blockchain. It was created by Bitcoin developer Casey Rodarmor and has been gaining attention since its launch in January 2023 [1].
The term “Ordinal” refers to a numbering scheme for satoshis that allows tracking and transferring individual satoshis. Satoshis are numbered in the order in which they are mined and transferred from transaction inputs to transaction outputs first-in-first-out [3]. Ordinals are essentially a type of NFT that works with Satoshis and was made possible by the Bitcoin Taproot upgrade that completed in November 2021 [2].
The Bitcoin blockchain consists of blocks, and each block can only hold a certain amount of data. This has been a major limitation for NFTs on Bitcoin. Ordinals, on the other hand, allow for more efficient use of block space by tracking individual Satoshis instead of creating a separate transaction for each NFT. This makes it possible to deploy NFTs on Bitcoin without using additional block space [1].
Ordinals have been described as kickstarting a new renaissance of Bitcoin development and bringing in a new wave of Bitcoin users [4]. As of February 11th, 2023, there is one platform specifically for buying bitcoin Ordinals: Generative.xyz. This platform sees itself as the “Art Blocks” of Bitcoin Ordinals, aiming to make it easier to buy these digital assets [5].
In summary, Bitcoin Ordinals is an innovative way of deploying NFTs on the Bitcoin blockchain, utilizing a numbering scheme for Satoshis to track and transfer individual units. It has the potential to revolutionize NFTs on Bitcoin by optimizing block space and attracting new users to the platform. As the technology is still relatively new, it will be interesting to see how it develops and what potential use cases it may have in the future.
References:
[1] “Ordinals, created by Bitcoin developer Casey Rodarmor, is a term widely used to describe a new type of non-fungible token (NFT) native to Bitcoin. This new way of deploying NFTs on Bitcoin directly has been making headlines since launching in January 2023.” URL: https://trustwallet.com/blog/bitcoin-ordinals-everything-you-need-to-know
[2] “Bitcoin Ordinals is a Layer 1 protocol that works with Satoshis and came about via the Bitcoin Taproot upgrade that completed in November 2021 and effectively allows massive Bitcoin block sizes through executable scripts (but is typically limited to 4MB). On the Bitcoin blockchain, one BTC contains 100 million Satoshis (or Sats).” URL: https://www.makeuseof.com/what-are-bitcoin-ordinals-how-differ-from-nfts/
[3] “Ordinals are a numbering scheme for satoshis that allows tracking and transferring individual sats. These numbers are called ordinal numbers. Satoshis are numbered in the order in which they’re mined, and transferred from transaction inputs to transaction outputs first-in-first-out.” URL: https://unchained.com/blog/bitcoin-inscriptions-ordinals/
[4] “Ordinals is kickstarting a new renaissance of Bitcoin development and bringing in a new wave of Bitcoin users. We have seen this on other blockchains like Ethereum and Solana. Except this time, it’s happening on the most decentralized, most secure and highest-valued blockchain.” URL: https://bitcoinmagazine.com/culture/bitcoin-ordinals-need-standards
[5] “As of Feb 11th 2023, there is now one platform specifically for buying bitcoin Ordinals: Generative.xyz. This platform sees itself as the “Art Blocks” of Bitcoin Ordinals, aiming to make it easier to buy these digital assets. Using this platform you can easily browse the Ordinals for sale or even inscribe your own.” URL: https://www.ledger.com/academy/bitcoin-ordinals
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