Bitcoin Ordinals use an open source protocol that assigns a unique identity to each satoshis (sat). Named after the creator of Bitcoin, Satoshi Nakamoto, satoshis are the smallest unit of Bitcoin. Using Ord software, the protocol adds data to these sats and allows software users to track them based on a system of ordinal numbers.

To break the status quo of BTC being dull like a pool of stagnant water, make BTC more interesting and fully promote the community culture of BTC.

More than a decade ago, projects such as the Colored Coin protocol and the Counterparty exchange demonstrated that Bitcoin can track items in a decentralized way, and is not just a currency unit. Consensus issues, however, have prevented both projects from gaining widespread market adoption. Ethereum quickly took over as the platform of choice for minting and deploying unique digital products.

The team behind Ordinals believes that non-fungible tokens also deserve a place on the Bitcoin blockchain. This facilitated the launch of the Ordinals project.

The Ordinals protocol mainly consists of two parts: Ordinal Theory: A method of numbering sats for tracking, transfer, and value distribution purposes. · Inscription: The process of using the Ord software to associate content with a sat based on a number assigned by the software. Ord software associates content with real sats, but according to a numbering mechanism unique to Ord software.

Deploy tokens, mint tokens and transfer tokens

Greater Transparency Bitcoin Ordinals track the order of Bitcoin transactions on the blockchain, providing a transparent and immutable record of the movement of funds. This helps prevent fraud and other types of illegal activity, and increases trust in the Bitcoin ecosystem. Greater Efficiency Bitcoin Ordinals automatically tracks and records Bitcoin transactions, helping to reduce the cost and time required for manual record keeping and auditing. Has the potential to enable new types of financial innovation Bitcoin Ordinals provide a transparent and immutable record of the order of Bitcoin transactions, allowing the creation of new types of financial products and contracts on the blockchain, bringing new possibilities for investing, lending, and other financial services Chance.

Ordinals follows the MIME protocol, and the data type can be pictures, videos, texts, identities, or others. Therefore, with Bitcoin’s most powerful decentralized consensus, there is still a lot of room for ecological imagination related to Bitcoin NFT in the future. . Ordinals inscription content is entirely on-chain, stored in the spend script of the taproot script-path spend scripts script path. Taproot scripts have very few restrictions on their content and also receive witness discounts, making storage of inscription content relatively economical. Taproot is the latest stage of bitcoin expansion after segwit. The expansion of bitcoin is to increase the transaction volume of bitcoin, but objectively it also creates conditions for the emergence of ordinals. The Ordinals protocol essentially serializes this piece of code into the witness script.

The total supply limit of ORDI is 21 million, and the issuance of tokens is limited to 1,000 at a time.

The ORDI token is the first ever BRC-20 token, and the primary role of the ORDI token is to serve as a meme to demonstrate the potential of the BRC-20 standard.

A major advantage of Ordinals NFTs over traditional NFTs is their decentralization and higher security standards, thanks to the cryptographic nature of Bitcoin. Ordinals allow metadata to be recorded on Satoshi, i.e. Ordinals NFTs are always stored on the Bitcoin blockchain. This core feature makes it more decentralized and secure. In contrast, most NFT types in the current NFT market are stored on decentralized applications via self-executing smart contracts like the Ethereum Virtual Machine (EVM). This makes traditional NFTs dependent on rules and logic encoded on contracts. Ordinals NFT will be more liquid Among the users who believe in Bitcoin and Ethereum, a large part of them are early followers of the industry and Web3 fans. It can be said that the Bitcoin network is one of the earliest and most influential blockchain networks. The floating of Bitcoin has affected the market situation so far. Since digital assets are stored on Bitcoin, it means that users link their artworks to the most liquid encrypted assets in the market. Other NFT-compatible encrypted assets are limited by the security features, robustness, market value, etc. of the platform on which they are located, and therefore cannot enjoy the same level of liquidity. Immutability and Security of Ordinals NFT Ordinals NFT inherits the simplicity, immutability, security and durability of Bitcoin itself. Inherent properties of the Bitcoin protocol make transactions immutable through cryptographic hashing and consensus mechanisms. Each block in the Bitcoin blockchain contains a hash of the previous block, creating a tamper-proof series of blocks. Therefore, once a majority of nodes on the Bitcoin chain confirms a transaction, it becomes a permanent record in the distributed public ledger. The benefit for Bitcoin users is that there is very little chance of fraudulent transactions or making changes to existing transactions. Ordinals NFT is more scarce Bitcoin has a maximum supply of 21 million, and miners earn newly mined Bitcoin by performing computationally intensive operations and creating new Bitcoin blocks in the blockchain. Every 4 years, the reward is halved. Every 2016 blocks, or about 4 weeks, the cost and difficulty of creating a new block increases. The difficulty level is designed to ensure a steady rate of new block creation over time. Therefore, to create an inscription based on Ordinals, the user needs to make a bitcoin transaction and hold the content on the bitcoin blockchain.

Network congestion problem The large-scale adoption of the Ordinals protocol may lead to network congestion, which needs to be dealt with by means of data compression, layer-2 expansion or combination with Lightning Network. Data compression can reduce the total amount of stored data, layer-2 expansion can move some transactions to the side chain, and the Lightning Network can realize fast liquidation under asset lock status. These measures can effectively reduce the impact of the Ordinals protocol on the main network and also expand its Create a wider space. In terms of data compression, there have been new data formats proposed by the project party. The problem of transparent and decentralized operation of the indexer At present, under the Ordinals protocol, emerging digital asset standards such as BRC20 and smart contracts mainly rely on third-party indexing tools to read the data on the chain and calculate the data according to the Token issuer. Pre-deployed contract rules confirm the rights of key operations such as asset casting and transfer. These indexing tools actually perform important functions similar to "oracle machines", and they are one of the most critical components of the entire Token ecosystem. However, this also means that the Token ecosystem needs to guard against the risk of potential malicious behavior or misuse of data from the index tool operator. For this reason, future indexing services must adopt open source and transparent code forms, turn to decentralized operating mechanisms, and even need to build these services directly on existing or new blockchain networks. Recently, UniSat, the largest trading platform for BRC20 Token, released the source code of its BRC20 Token indexing tool. This move means that the core infrastructure, which was highly prone to security risks before, will eventually continue to evolve in the direction of open source and decentralization. This will also help smaller developers in the ecosystem quickly make up for their shortcomings in this field and ease their technical barriers. Overall, open source and decentralization of the indexing service is undoubtedly the right direction to build a sustainable Token ecosystem. It can minimize the risks brought by centralized operators, enhance the robustness and security of the system, and make it easier for participants to understand the operating mechanism of the system. This is a project that technical teams and institutions in the Token field need to discuss in depth and jointly promote. At present, some project teams have begun to develop decentralized indexers.

As a data technology embedded in the Bitcoin blockchain, the Ordinals protocol has brought a series of positive impacts to the industry: First, it inspired the emergence of more Token and protocol standards. Ordinals has opened up a wider application space and potential for the Bitcoin network, making the Bitcoin ecosystem rich and colorful, and further realizing technological progress and value. Second, the Ordinals protocol facilitates the expansion and upgrade of the Bitcoin network. In order to alleviate its impact, measures such as data compression and layer 2 expansion need to be taken. These changes are bound to drive the advancement of Bitcoin technology. Finally, the Ordinals protocol has a positive impact on the Bitcoin network in two aspects by increasing miners' income: one is to help solve the security budget problem and motivate miners to maintain sufficient network security. Increased transaction fees can establish a sustainable transaction fee baseline, ensuring long-term network security. Second, it can attract more computing power to join the network and expand the overall security of Bitcoin.

As an investment, liquidity exit issues need to be considered. The infrastructure of the BRC-20 ecosystem is weak, there is no liquid exchange, the security of token transactions cannot be guaranteed, and there are still many defects. Due to the absence of smart contracts, the potential financial application value of these FT/NFT is also greatly limited. But the new upsurge is attracting a large influx of developers. UniSat announced that the code is open source, which means that a large number of infrastructure tools and facilities are coming. At the same time, with the access of exchanges such as OpenSea, transactions will be smoother. On the other hand, BRC-20 tokens currently lack practical application value, and are even a bit similar to writing numbers on white paper as checks. As more projects emerge, creating application scenarios for BRC-20 tokens can add more value to Glyph tokens. For example, OrdzGames, the original GameFi project of Ordinals, will issue rewards in BRC-20. In short, the BTC ecology or Ordinals ecology represented by BRC-20 is a high-risk and high-return opportunity, and BRC is not a real standard, and there is still a lot of room for expansion in the future.