What are Ordinals? An overview of Bitcoin NFT tokens

Summary

Each Bitcoin is made up of 100,000,000 satoshis (sats). The Ordinals protocol allows for the identification of each individual satoshi and the handling of it with attached additional data (through a process known as inscription).

Ordinals has created another use case for Bitcoin that goes beyond simple value transfer, making Bitcoin NFT tokens a reality.

Introduction

Until recently, NFT tokens were primarily minted and used on blockchain networks like Ethereum, Solana, and Binance Smart Chain, but the team behind Ordinals believes that non-fungible tokens also have a place on the Bitcoin blockchain, leading to the emergence of the Ordinals project.

History has shown that altering a part of Bitcoin's code is extremely challenging. This issue is primarily attributed to the decentralized network of nodes and developers who do not want to risk the security of the network. As such, Bitcoin NFT tokens have not gained the same level of traction. However, the growth of the digital currency ecosystem has opened doors for more innovative minds who see the creation of Bitcoin NFT tokens as part of the future of Web 3.

As of February 2023, inscriptions using Ordinals have surpassed 100,000, with users placing images, video games, and other content on the network. We will see how it works next.$BNB