Bitcoin Ordinals
Protocol enabling writing data directly on Bitcoin blockchain — BTC NFTs.
Bitcoin Ordinals is a protocol created by Casey Rodarmor (2023) using Bitcoin's Taproot upgrade to "inscribe" arbitrary data — images, text, code — directly on the Bitcoin blockchain.
How it works:
•Each satoshi (1/100,000,000 BTC) gets a sequential number (ordinal)
•Data can be "inscribed" on that satoshi (inscription)
•Inscription is permanent, immutable, on Bitcoin blockchain
•Transferring satoshi = transferring NFT
Ecosystem:
•BRC-20 tokens — fungible tokens on Bitcoin network (ORDI, SATS)
•Runes protocol — more efficient BRC-20 successor
•Marketplace: Magic Eden (Bitcoin), OKX NFT
Controversy:
•Bitcoin maximalists: "Ordinals clog the blockchain with worthless data"
•Ordinals advocates: "Bitcoin is for everything, not just value transfer"
•Effect: dramatic increase in Bitcoin mining fees in 2023–2024
Ordinals sparked the first Bitcoin "DeFi" wave and NFT ecosystem on L1.