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What is Bitcoin Ordinals?

Bitcoin Ordinals, also known as digital artifacts, are a way to inscribe digital content on the Bitcoin blockchain. They were introduced in January 2023 by Casey Rodarmor, a programmer and artist, who saw an opportunity to create a unique experience on the Bitcoin blockchain similar to non-fungible tokens (NFTs) on Ethereum and other blockchains.

What are Bitcoin Ordinals?

Bitcoin Ordinals are a system for numbering and tracking individual satoshis (the smallest unit of Bitcoin), transforming them into non-fungible tokens (NFTs). Ordinals are based on ordinal theory, which gives individual identities to satoshis and allows them to be tracked, transferred, and imbued with meaning.

The Ordinals protocol assigns a unique number to each satoshi based on when it was mined. Smaller numbers correspond to older satoshis. As transactions occur, the Ordinals protocol tracks each satoshi through subsequent transactions in a “first-in-first-out” scheme. The satoshis’ identifying numbers are called Ordinals, as both the identification and the tracking mechanism are dependent on the chronological order of creation and transactions.

How do Bitcoin Ordinals work?

Ordinals simply refer to the system for numbering and tracking satoshis. Each satoshi is assigned a unique identifying number when they are created (mined) which can be traced through every subsequent transaction. Each satoshi identified by the Ordinals protocol can also be referred to as an Ordinal.

The Ordinals protocol assigns a number to each satoshi based on the order in which it was created, called the integer. It also assigns a decimal based on the satoshi’s position in the block height of its Bitcoin block. Finally, its position in the entire Bitcoin supply is expressed as a percentile, and its name is assigned using the letters a-z. The names of satoshis get shorter as time goes on, such that the last satoshi ever mined will be “a.”

After a satoshi has been identified by the Ordinals protocol, users can inscribe a satoshi with arbitrary data to give it its unique characteristics, defined as a digital artifact. Writing arbitrary data into a satoshi only became possible after the SegWit (2017) and Taproot (2021) upgrades to Bitcoin Core.

How to buy, sell, and trade Ordinals?

Much like the process of minting Bitcoin Ordinals, the trading process hasn’t had matured tooling. Yet there are a few tools to trade these digital artifacts. As Bitcoin Ordinals grow in popularity, most of the trades have been largely over-the-counter. However, tools like the Ordinals Wallet, Hiro, and Xverse allow users to buy and sell Bitcoin Ordinals.

Ordinals Wallets

Ordinal wallets provide a simple way to store and collect digital artifacts created using Ordinals. Here are some of the trusted Ordinal wallets:

The Ordinals Wallet: Launched on February 16, 2023, the Ordinals Wallet is a Bitcoin wallet that allows users to hold, store, view, transfer, send, inscribe, and buy and sell Ordinals directly from within the wallet. It has a user-friendly interface and is a community-funded project.

Hiro Wallet: Launched on February 14, 2023, Hiro Wallet allows users to securely store, send, and receive Bitcoin, and create and store Ordinal NFT inscriptions in minutes. It is compatible with popular Ordinals platforms such as Gamma, OrdinalsBot, and other emerging apps, allowing for inscription directly in the web browser.

Ordinals vs. traditional NFTs

Ordinals are different from traditional NFTs from a technical design perspective. There are several features that make the pricing for ordinals a different exercise. Bitcoin Ordinals help identify satoshis uniquely and have content or art stored on-chain. Ethereum’s ERC-721 standard, which is used to create NFTs, typically holds the metadata or a pointer to the art, which is generally held off-chain. Some Ethereum NFTs are experimenting with on-chain storage, but they are more of an exception.

Future of Bitcoin Ordinals

Bitcoin Ordinals are a new technology and the use cases for them keep growing. They have been used to port Ethereum (and other chain) NFT collections to Bitcoin, but unique projects are also beginning to stake a claim to digital artifacts tied to the original cryptocurrency. As demand from ordinary users and followers increases, the ecosystem and the tooling should start maturing with more user-friendly journeys.

Bitcoin Ordinals Founder Proposes Immutable Metadata for Inscriptions

Bitcoin Ordinals (ORDI), a blockchain-based platform known for its unique inscriptions, is on the verge of a significant update. Introduced in January 2023 by Casey Rodarmor, a programmer and artist, as reported by Blockchain.News, Bitcoin Ordinals serve as a system for numbering and tracking individual satoshis, transforming them into non-fungible tokens (NFTs). The platform has now proposed an addition of metadata to these inscriptions.

What are Bitcoin Ordinals?

Bitcoin Ordinals are unique in the blockchain space, offering a way to inscribe digital content directly onto the Bitcoin blockchain. They are based on ordinal theory, which assigns a unique number to each satoshi based on when it was mined. This allows for the tracking, transferring, and imbuing of individual satoshis with meaning. Unlike traditional NFTs on platforms like Ethereum, Bitcoin Ordinals store content or art directly on-chain.

Immutable Metadata

Casey’s recent proposal aims to introduce plain-text key-value pairs as metadata for inscriptions. Made public on September 5, 2023, the proposal is “intentionally simple, supporting only plain-text key-value pairs,” covering “the vast majority of use-cases” and designed to be “human readable and easy to display without a schema.”

No Retroactive Changes

When asked about the possibility of retroactively adding metadata to existing inscriptions, Casey clarified,

Nope, unfortunately not. Inscriptions are immutable, so it is not possible to add metadata to old inscriptions.

Trading and Wallets

As Bitcoin Ordinals grow in popularity, trading tools are emerging to facilitate the buying and selling of these digital artifacts. Ordinals Wallet and Hiro Wallet, launched in February 2023, are among the trusted platforms that allow users to store, send, and trade Ordinals.

Implications for the Blockchain Industry

The move to add metadata to inscriptions could set a precedent for other blockchain platforms seeking to enhance the utility and readability of their data. However, the immutability factor remains a double-edged sword, offering both security and limitations.

Future Outlook

Bitcoin Ordinals are a burgeoning technology with growing use-cases, including porting Ethereum NFT collections to Bitcoin. As demand increases, the ecosystem is expected to mature, offering more user-friendly journeys.

Bitcoin Ordinals: Over 30M Inscriptions with $50M in Accumulated Fees

As of recent data from Dune Analytics, the Bitcoin Ordinals Protocol has seen a total of 30,329,662 inscriptions, with an accumulated fee of ₿1,998.1707 (Bitcoin), equivalent to approximately $51,681,834 USD. These inscriptions, known as “Bitcoin-native Digital Artifacts,” allow users to embed data directly into the Bitcoin Blockchain.

Introduced in January 2023 by programmer and artist Casey Rodarmor, Bitcoin Ordinals, or digital artifacts, offer a unique way to inscribe digital content on the Bitcoin blockchain. Drawing parallels to non-fungible tokens (NFTs) on platforms like Ethereum, Ordinals transform individual satoshis (the smallest unit of Bitcoin) into NFTs. This transformation is based on ordinal theory, which assigns individual identities to satoshis, enabling them to be tracked, transferred, and endowed with significance.

The Ordinals protocol, at its core, assigns a unique number to each satoshi based on its mining chronology. The identification and tracking mechanism, known as “Ordinals,” relies on the chronological sequence of creation and transactions. Each satoshi, once identified by the Ordinals protocol, can be inscribed with arbitrary data, turning it into a distinct digital artifact. This capability to write arbitrary data into a satoshi became feasible following the SegWit (2017) and Taproot (2021) upgrades to Bitcoin Core.

The trading landscape for Bitcoin Ordinals is still nascent. Most trades are conducted over-the-counter, but tools like the Ordinals Wallet, Hiro, and Xverse have emerged to facilitate the buying and selling of these digital artifacts. Notably, the Ordinals Wallet, launched on February 16, 2023, offers a comprehensive solution for users to manage, transfer, and trade Ordinals. Similarly, the Hiro Wallet, introduced on February 14, 2023, is compatible with popular Ordinals platforms such as Gamma and OrdinalsBot.

In comparison to traditional NFTs, Ordinals stand out due to their technical design. While Ethereum’s ERC-721 standard, used for NFT creation, typically holds metadata or a pointer to the art off-chain, Bitcoin Ordinals store content or art directly on-chain. This distinction in storage methodology underscores the uniqueness of Ordinals in the digital asset space.

The future trajectory of Bitcoin Ordinals appears promising. Beyond porting Ethereum NFT collections to Bitcoin, innovative projects are emerging that are intrinsically linked to these digital artifacts. As the demand from users and enthusiasts grows, the ecosystem is expected to evolve, offering more refined and user-centric solutions.

In a recent development, the Ordinals Protocol has introduced “Recursive Inscriptions,” a minor upgrade that could enhance composability and introduce an element of randomness to inscriptions. This upgrade has already seen a total of 149,610 recursive inscriptions.

In conclusion, Bitcoin Ordinals represent a pioneering step in the world of digital assets, merging the robustness of the Bitcoin blockchain with the versatility of NFTs. As the technology matures, it will be intriguing to witness the myriad ways in which it reshapes the digital landscape.

Bitcoin Ordinals Creator Casey Rodarmor Expands Ecosystem with "Runes"

Key Takeaways

Casey Rodarmor, known for Bitcoin Ordinals, introduces “Runes,” a new fungible token protocol for Bitcoin.

“Runes” aims for a simplified user experience and responsible UTXO management.

The announcement comes after the success of Bitcoin Ordinals, another innovative protocol by Rodarmor that transformed satoshis into NFTs.

Casey Rodarmor, who gained prominence for his creation of Bitcoin Ordinals, has announced a new fungible token protocol for Bitcoin named “Runes.” The announcement was made on September 26, 2023, and quickly gained over 250,000 views. This comes after the success of Bitcoin Ordinals, a system that transformed individual satoshis into non-fungible tokens (NFTs), adding another layer of innovation to the Bitcoin blockchain.

The Genesis of Runes

Rodarmor acknowledges the controversial nature of fungible tokens, describing them as mostly “scams and memes.” However, he believes that a well-designed fungible token protocol could bring “significant transaction fee revenue, developer mindshare, and users to Bitcoin.” Runes aims to offer a more streamlined, user-friendly experience while promoting responsible UTXO (Unspent Transaction Output) management, similar to the user-friendly journeys observed in Bitcoin Ordinals.

Technical Aspects of Runes

Runes is designed to be UTXO-based, fitting naturally into Bitcoin’s existing architecture. It aims to avoid the creation of “junk” UTXOs and does not require a native token for protocol operations. The protocol uses OP_RETURN followed by a data push of the ASCII uppercase letter “R” to contain protocol messages in transactions. Invalid protocol messages result in the burning of the input runes, allowing for future upgrades.

Runes and Bitcoin Ordinals: A Comparative Analysis

While Bitcoin Ordinals focused on transforming satoshis into NFTs based on ordinal theory, Runes aims to simplify the fungible token landscape on Bitcoin. Both protocols reflect Rodarmor’s commitment to innovation within the Bitcoin ecosystem. Bitcoin Ordinals had introduced unique identification and tracking for satoshis, and Runes aims to bring similar levels of innovation to fungible tokens.

Ethical and Practical Considerations

Rodarmor raises ethical questions about the existence of such a protocol. He describes the fungible token landscape as a “near totally irredeemable pit of deceit and avarice” but suggests that Runes might draw users away from less-efficient schemes, thereby benefiting Bitcoin in the long run.

Future Outlook

The introduction of Runes opens up new avenues for discussion within the Bitcoin community. It remains to be seen how the protocol will be received, but its focus on simplicity and efficiency could make it a strong contender in the evolving landscape of Bitcoin-based fungible tokens.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

Trump Launches Limited Edition Digital Trading Cards on Bitcoin Ordinals

The world of digital collectibles is witnessing an important development with the introduction of former U.S. President Donald Trump’s latest NFT collection, minted as Bitcoin Ordinals. This move marks a significant shift in the NFT space, leveraging the robustness and longevity of the Bitcoin blockchain.

Trump’s Foray into Bitcoin Ordinals

Donald Trump has consistently expanded his presence in the digital collectible market, releasing several NFT collections since late 2022. These collections were initially operated on the Polygon blockchain. However, in a bold crossover, Trump’s latest Mugshot Edition Collection has now been integrated into the Bitcoin blockchain, offering a “one-of-one Bitcoin Ordinal digital trading card” as a rare digital collectible.

This integration into Bitcoin provides unique advantages over other platforms, particularly in terms of scarcity and longevity. Ordinals inscribe data like images and text directly onto the Bitcoin blockchain, embedding collectible content at the protocol level, unlike other NFTs, which typically contain a link to a digital art file hosted on a conventional web server. This ensures the immutability and accessibility of the data.

The Mugshot Edition Collection

The Mugshot Edition Collection, limited to only 200 Bitcoin Ordinal cards, features a unique promotion. Out of these, 101 will be allocated as part of the promotional offer, while the remaining 99 are available for purchase. To qualify for a Mugshot Edition Bitcoin Ordinals card, collectors must purchase 100 Mugshot Edition NFTs using wrapped ETH, at a total cost of $9,900.

This collection showcases Trump’s life and career, with the mugshot NFTs, priced at $99 each, reflecting personal moments. Buyers purchasing 47 or more cards will have opportunities such as attending a dinner with Trump and receiving a piece of the suit worn during his arrest, with some NFTs potentially bearing Trump’s signature.

Economic Implications and Collector Interest

Despite their high price, these digital trading cards have attracted significant interest. Revenue from the new collection, channeled through a licensing deal with Trump-owned CIC Digital, contributes to Trump’s finances. The original collection’s trading volume peaked at over 200,000 ETH in February 2023. However, these new Mugshot Edition NFTs are non-transferable until the end of 2024, emphasizing their nature as collectibles rather than investment vehicles.

Conclusion

Donald Trump’s venture into Bitcoin Ordinals with his digital trading cards represents a novel intersection of celebrity, politics, and blockchain technology. This move not only taps into the collector psychology but also opens new pathways for digital collectibles in popular culture. As virtual assets continue to find unique applications, the integration of diverse blockchain technologies like Bitcoin Ordinals heralds an era of creative and enduring digital collectibles.