Ordinals: Putting NFTs on the Original Blockchain
The world of NFTs, or non-fungible tokens, has exploded in popularity in recent years. But most NFTs reside on their own blockchains, separate from established giants like Bitcoin. Ordinals, however, are a new twist that injects NFTs directly onto the Bitcoin blockchain itself.
There are two key terms to understand with Ordinals:
- Ordinals: This refers to the system that assigns a unique order to individual satoshis, the smallest denomination of Bitcoin. This ordering is what allows for the creation of non-fungible tokens.
- Inscriptions: These are the actual data attached to a satoshi using the Ordinals system. Inscriptions can be images, videos, text, or any other digital content, similar to traditional NFTs.
The concept relies on the Taproot upgrade implemented on Bitcoin in November 2021. Taproot allows for more complex transactions on the blockchain, which opened the door for Ordinals.
Here are some of the key points about Ordinals:
- Native Bitcoin NFTs: Unlike other Bitcoin-based NFTs that utilize separate layers, Ordinals inscribe data directly onto the Bitcoin blockchain itself. This leverages the security and immutability of Bitcoin for NFTs.
- Controversy: The large data size of Ordinals has caused some controversy. Critics argue it bloats the Bitcoin blockchain and goes against its core purpose of fast, cheap transactions.
- A New Market: Ordinal inscriptions have created a new marketplace for unique digital assets on Bitcoin. Specific wallets and marketplaces have emerged to facilitate the buying and selling of Ordinals.
The future of Ordinals remains to be seen. Whether they become a mainstream way to create NFTs on Bitcoin or a niche phenomenon is yet to be determined. However, they represent a significant innovation that pushes the boundaries of what's possible with the Bitcoin blockchain.
