Ordinals
Ordinals is a protocol from January 2023 that uniquely identifies individual satoshis and allows content (text, image, video) to be inscribed on them.
Ordinals assign a sequential number to every satoshi based on mining order. Via the protocol you can inscribe arbitrary data to specific sats (Taproot enabled this through large-witness data). Controversy: they fill blockspace, raise fees, alter the 'Bitcoin is only money' principle. Fans see proof of Bitcoin's flexibility and fee revenue.
Example
An artist inscribes a 50KB JPG on a specific sat. That sat is now collectible and tradeable on Ordinal marketplaces for many times its nominal value.
Frequently asked questions
Are ordinals NFTs?
Functionally very similar: unique digital tokens with integrated media. Technically different from Ethereum NFTs: everything on-chain, no smart contract.
Related terms
Further reading
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