Ordinals - Page 16

Ordinals are a technical methodology for uniquely identifying, tracking, and attaching extra data to individual satoshis, the smallest divisible unit of Bitcoin. Enabled by the Taproot network upgrade, the Ordinals protocol assigns a sequential number to every satoshi minted and allows users to "inscribe" them with digital content such as images, text, or audio. This inscription process effectively transforms a standard, fungible unit of Bitcoin into a non-fungible token directly on the primary blockchain without the need for separate sidechains or secondary layers. By storing the data directly within the transaction witness data, these digital artifacts inherit the full security, permanence, and immutability of the Bitcoin network. Ordinals vastly expanded the utility of the Bitcoin blockchain beyond simple financial transactions, creating a vibrant ecosystem for digital collectibles.