Bitcoin Ordinal Inscriptions refer to unique digital artifacts that are permanently inscribed or attached to an individual satoshi (the smallest unit of Bitcoin) on the Bitcoin blockchain. This concept highlights the possibility of adding extra information or value to a specific satoshi, making it distinguishable from others on the blockchain. These are distinct from NFTs because, instead of being stored on third-party or centralized servers, the inscriptions are permanently recorded directly onto the Bitcoin blockchain itself.


To better comprehend Bitcoin Ordinal Inscriptions, it's essential to understand the following key concepts:


  • Bitcoin:

    A decentralized digital currency that operates without a central authority, such as a bank or government. Transactions are verified by a network of computers called nodes and recorded on a public ledger known as the blockchain.

  • Blockchain:

    A decentralized, distributed ledger that records all transactions in a chronological order. In the case of Bitcoin, this ledger is public and can be viewed by anyone.

  • Satoshi:

    The smallest unit of Bitcoin, named after its creator, Satoshi Nakamoto. One satoshi equals 0.00000001 BTC.

  • Ordinal Inscriptions:

    The process of attaching or inscribing additional digital artifacts or data to a specific satoshi on the Bitcoin blockchain. These inscriptions can be used for various purposes, such as adding metadata, proving ownership, or creating digital collectibles. When a digital artifact is inscribed onto a specific satoshi, that satoshi becomes unique and distinguishable from others. This process can add extra value or utility to the satoshi in question, depending on the purpose of the inscription. For example, artists could inscribe their digital artwork onto individual satoshis, creating limited edition collectibles. These collectibles could then be traded or sold, with the value determined by the rarity and desirability of the artwork.
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