What are Bitcoin Ordinals?
Bitcoin ordinals were an invention of Bitcoin developer Casey Rodarmor. It was in relation to the new sort of native, in-protocol, non-fungible token existing within the Bitcoin blockchain.
Ordinals function similarly to Bitcoin serial numbers. Every paper money (for example, a $200 bill) printed by the UK Debt Management Office (DMO) under HM Treasury is assigned a serial number.
Let me make you understand with a simple example!!! If you carry currency, note a bill in your wallet or pocket. Each UK bill has a serial number written twice on its front.
Similarly, ordinals issue serial numbers to Bitcoin units based on the mining order. The units used are "sat" from "Satoshi Nakamoto," the pseudonym of the Bitcoin developer. One BTC ordinal shall have a value of 0.00000001 BTC.
Let’s explore this subject in detail.
Bitcoin Ordinals Technology
Bitcoin Ordinals is a technology that gives special identification to individual SATs on the Bitcoin blockchain.
The system, developed by Casey Rodarmor, effectively permits the minting of non-fungible tokens (NFTs) straight on the Bitcoin network.
They could also be referred to as Ordinal NFTs. NFTs are the hottest digital assets in the world today. Most of them have been designed and consequently put on blockchain networks such as Ethereum, BNB Smart Chain, or Solana.
Interestingly, the principles of Bitcoin Ordinals lead to implementing NFTs on the world's oldest blockchain: the Bitcoin network.
Bitcoin's technical nature makes it hard to update the code of its apps.
Read more: What are NFTs?
How do Bitcoin Ordinals work?
The Ordinals protocol is a technique for distinguishing and tracking individual sats, which is an important component in the creation of Bitcoin-based NFTs.
Whenever a fresh Bitcoin block gets mined, the system gives an identification number to every single sat based on the date it was mined. Smaller numbers line up with older SATs.
The Ordinals protocol monitors each transaction as it occurs, using a "first-in-first-out" method. The identified numbers for sats are known as ordinals. It’s because both the identification and tracking mechanisms are based on the chronological sequence of formation and transactions.
What is the Difference Between NFT and Bitcoin Ordinals?
While Bitcoin Ordinals and regular NFTs share the collectible aspect, there are important differences.
Ordinals are stored straight on the Bitcoin blockchain, as opposed to many Ethereum NFTs, which frequently run on centralized servers and use smart contracts.
Bitcoin Ordinals presently do not offer author royalties upon sale, which is a characteristic common to Ethereum NFTs.
Furthermore, Ethereum NFTs are commonly used in broader applications. These include inventory management and ticketing. Moreover, they enable more data storage than Bitcoin inscriptions.
Where to buy BTC Ordinals?
Using a wallet to purchase, sell, and exchange BTC Ordinals is similar to using traditional NFTs. You may trade Bitcoin Ordinals on several different platforms, including OKX, Xverse, Hiro, MetaMask, and the topmost Ordinals Wallet.
How much are Bitcoin Ordinals?
With a 24-hour trading volume of $839.86 M, Ordinal BTC (OBTC) is currently trading for $85.58. This indicates a slight decrease in price from $86.53 on the previous day.
The Future of Bitcoin Ordinals
Bitcoin ordinals will be expected to play a larger role in the DeFi ecosystem if and when more use cases are created. Ordinals can help make DeFi more secure and reliable by keeping persistent, transparent records of financial transactions.
It broadens the DeFi ecosystem outside Ethereum's hegemony. This boosts decentralization and competitiveness as an investor, providing you with more options.
Final Notes!
Within the cryptocurrency space, Bitcoin Ordinals marks a major advancement. Its cutting-edge marketing approach, improved security, scalability, and fractional ownership set it apart from the competition.
The influence that Bitcoin Ordinals will have on the cryptocurrency scene as 2024 progresses is expected to be significant. It is a revolution that unlocks a whole new set of possibilities for future generations to adopt digital assets.
Zealots, investors, and the general public should keep an eye on Bitcoin Ordinals. They may further dictate the direction in which cryptocurrencies are heading. For more information on cryptocurrency tax, compliance, and due diligence, contact Crypto Accountants!!