Security Token Exchange

Ordinals (ORDI) offer Bitcoiners the chance to add something extra to their satoshis. The network provides a unique service in that you can add data to your Sats and create Bitcoin-powered collectibles and NFTs. To accomplish this task, the system enables anyone to add inscriptions on Bitcoin to create ordinals. This added flexibility could help Bitcoin regain lost market share as it adds to its usability considerably.

The introduction of native Bitcoin NFTs and collectibles is made possible by the recent introduction of the BRC20 token standard. This standard operates like others in that it provides developers with guidelines to create new assets without jeopardizing interoperability within the greater ecosystem. Notably, there are now over $900M in value locked up in BRC20 tokens. Ordinals seek to drive that amount even higher. Notably, there have been over 200K in Ordinals minted already.

What Problems Do Ordinals Attempt to Fix?

There are some issues within the Bitcoin ecosystem that Ordinals helps to solve. For one, it makes it easier and possible to leverage Bitcoin for NFT purposes. NFTs are unique tokens that can be set up to represent real-world items. They’re one of the fastest-growing areas of the market.

Ordinals enable anyone to create Bitcoin-powered NFTs without using a sidechain. As such, developers can create Ordinals that represent ownership of on and off-chain items. They can also make ordinals that are rare and exotic collectibles. Ordinals are sats so they are readily available to any Bitcoin users which makes the protocol accessible to the masses.

Benefits of Ordinals

One of the main benefits of Ordinals is that you don’t need to leverage an off-chain protocol. Networks like Lighting Network have helped Bitcoin handle scalability issues, but they introduce the risks associated with adding another network into a transaction.

Ordinals provide a stable and transparent way for Bitcoin to accomplish these goals without the need for a third party. For many people, this approach is ideal because it lowers security risks by reducing the number of transactions. Additionally, it improves transparency by keeping everything on the Bitcoin mainnet.

Easy Onboarding

Another major advantage that Ordinals bring to the table is easy onboarding. For many people, using off-chain networks to create digital assets can be a confusing process. Ordinals provide a streamlined process that works directly on-chain to provide results. You simply need to connect your wallet to start creating Ordinals.

Secure

Ordinals provide industry-grade security. The network offers decentralized services from an audited platform. Also, the network operates as pure code which reduces human error. Additionally, the Ordinals project is self-funded which helps to prevent outside influence.

Tokenization

The main benefit of Ordinals is the ability to tokenize assets and bring them onto the Bitcoin blockchain. Ordinals add another layer of value to the equation because they can be collected and traded. Bitcoiners gain access to another layer of value using this approach without exiting the ecosystem.

Collect

The ability to add personality to your satoshis opens the door for a new collectibles market. Already, a growing community of digital artists has created Ordinal NFTs. Many of these NFTs resemble early ETH NFT projects that featured low-resolution images.

Fungible and Non-Fungible at the same time

One of the coolest things about ordinals is that they aren’t recognized by the Bitcoin protocol formally. The Ordinal Theory is for those that know and accept it. In this way, it provides the ability to foster NFT offerings without jeopardizing the core fungibility of Bitcoin.

How Do Ordinals Work?

Ordinals can add timestamps, messages, and snippets of code to stats using a process called ordinal theory. This protocol works by giving each Bitcoin satoshi a unique number placed in a logical order based on the date it was mined. A sat is the smallest denomination of Bitcoin which equals 1/100,000,000 of a coin. Notably, This process doesn’t require the use of other networks to offer non-fungibility to the ecosystem. To make this possible, the system holds the data within the witness part of the transaction.

Inscriptions

In the Ordinals ecosystem, inscriptions are data stored on sats. This data can include video, audio, coding, and more. Since the system adds a unique number to each sat, every ordinal is a unique digital asset from creation.

Market

The Ordinals ecosystem includes a marketplace where you can buy, sell, and trade your tokens. This non-custodial market empowers users to get the most for their collectibles. You can showcase your collection or browse others. The interface shows key details on each ordinal which makes it easier to determine if the token fits your collection.

Ordinal Wallet

The Ordinals wallet is a core component of the ecosystem. This advanced interface streamlines the main features of the network. You can store and monitor your Ordinals securely using the protocol. You can also trade with others and build up your collection.

Token – ORDI

ORDI is the main utility token for the network. Each ORDI is worth one Satoshi when created. Its value from there depends on the token’s attributes, demand, and scarcity. ORDIs are backed by Bitcoin which makes them stand out in the NFT community.

Upgrades Made it Possible

The Ordinals protocol was made possible thanks to recent upgrades to the Bitcoin magnet. Specifically, the Segregated Witness (SegWit) and Taproot updates added room for more arbitrary data to be hosted on each block. It wasn’t long before developers saw this digital real estate as an opportunity.

Ordinal Theory – Leveraging Community to Create Added Value and Usability

The Ordinal theory is unique in many ways. It’s a perfect example of how a Bitcoiner’s creativity knows no bounds. The idea of creating Bitcoin NFTs that are only recognized by those who understand Ordinal Theory seems reminiscent of the earliest days of cryptography. As such, Ordinals are a cool community-driven project worth watching. For now, the community can enjoy converting Sats into Ordinals and other cool assets thanks to the new concept.