In this post, we’ll unpack all you need to know about Bitcoin Ordinals, defining exactly what they are, how they work, their main features and more.
What Are Bitcoin Ordinals?
Bitcoin Ordinals (BO’s) are a way of attaching information to satoshis (individual units of Bitcoin) through a process referred to as “inscribing.” This essentially transforms them into Non-Fungible Tokens (NFTs).
How Do They Work?
Bitcoin Ordinals are created using the Taproot upgrade to the Bitcoin protocol which allows for more complex transactions to be performed on the Bitcoin blockchain.
To create a Bitcoin ordinal, a user must first create a Bitcoin wallet. Once the wallet has been created, they can then send a satoshi to a Taproot-compatible wallet while inscribing information as part of the transaction.
Since ordinals are inscribed directly onto individual satoshis, they reside fully on the Bitcoin blockchain. Therefore, they inherit the simplicity, immutability, security and durability of Bitcoin itself.
What Are The Main Features?
There are several key features of BO’s. Firstly, they are unique and cannot be replaced. Secondly, they are created on the Bitcoin blockchain. Thirdly, they can be used to represent ownership of digital assets such as art, music and videos. Lastly, they can be traded via online marketplaces.
Bitcoin Ordinals are a way of inscribing information to satoshis. This process essentially turns them non-fungible tokens.
Key features of BO’s are that they are unique, they are created on the secure and decentralized Bitcoin blockchain, they can represent ownership of digital assets and they can be traded online.