Before we dive into Bitcoin Ordinals/NFTS, we need to understand what an ordinal is:
What are Bitcoin ordinals? The technical definition: 🗒️
Bitcoin ordinals are numbers assigned to Bitcoins in the order they’re mined or created.
These ordinal numbers are unique identifiers that can help track the history of each individual Bitcoin.
When Satoshi Nakamoto mined the first-ever Bitcoin block (known as the Genesis Block) in 2009, the first 50 Bitcoins came into existence.
These initial coins were assigned ordinal numbers, starting from 1 to 50. As more Bitcoins were mined, the ordinal numbers continued to grow sequentially. 🚀
The Birth of Bitcoin Ordinals/NFTs 🧪
Inspired by Ethereum’s NFT space that soared in 2021, programmer and artist Casey Rodarmor created Bitcoin ordinals to offer a unique experience on the Bitcoin blockchain.
These immutable on-chain collectibles use ordinal theory to assign individual identities to satoshis, allowing them to be tracked, transferred, and given meaning. 💡
How Do Bitcoin Ordinals Work? 🤔
In a nutshell, Bitcoin ordinals are a numbering scheme for satoshis, numbering them based on the order of mining.
Ordinal theory treats satoshis as atomic units on the Bitcoin network, which can be inscribed with digital content to create Bitcoin ordinals.
The potential of ordinal theory even extends beyond NFTs, with use cases like attaching security tokens, accounts, or stablecoins to satoshis. 🧬
Mining and Trading Bitcoin Ordinals 🎨
Mining, minting, or inscribing Bitcoin ordinals can be technically complex, but with tools like Gamma and the Ordinals Bot, users can upload content to create their own Bitcoin ordinal.
While trading is still in the early stages, tools like Ordinals Wallet, Hiro, and Xverse facilitate buying and selling ordinals. As demand grows, expect a more mature ecosystem and user-friendly tools to emerge. ⚒️
Bitcoin Ordinals vs. Traditional NFTs 💎
While there are similarities between Bitcoin ordinals and traditional NFTs, several key differences exist.
Bitcoin ordinals store content on-chain and derive rarity from key moments in the Bitcoin block, while traditional Ethereum-based NFTs hold metadata or pointers off-chain and derive rarity from attributes or supply limitations.
These distinctions make pricing and rarity of Bitcoin ordinals unique compared to their $ETH counterparts. 🌠