What are Bitcoin Ordinals? Ordinals are a numbering scheme for satoshis that allows tracking and transferring individual sats. Let's take a closer look.
What are Bitcoin Ordinals?
Ordinals are means of creating Bitcoin NFTs by attaching data such as images, videos, and more to an individual satoshi on the base Bitcoin blockchain. Ordinal NFTs don't reside on a different layer from Bitcoin like their predecessors did. Instead, they assign a unique number to each Bitcoin satoshi using the arbitrary but logical ordinal theory approach. In this sense, ordinal NFTs are native to Bitcoin. They work without changes to the Bitcoin protocol, don't require any extra layers, and are backward compatible with the network.
How Are Bitcoin Ordinals Different from NFTs?
The flexibility of Bitcoin ordinals sets them apart from more traditional NFT types. An ordinal can either be fungible or non-fungible because the Bitcoin protocol does not technically recognize ordinal theory. Who owns the ordinal and whether they want to keep the very individual satoshi very greatly.
An ordinal, for instance, can be used like any other Bitcoin if the user is unaware of it or doesn't care about the data associated with it. Ordinals are fungible in this way—they can be used to pay for network fees or sent as payment, though the arbitrary data will still stay attached. An Ethereum NFT is an exception to this rule. The Ethereum Network processes each token type individually, therefore an Ethereum NFT is entirely different from an Ethereum coin and cannot be confused with a fungible token.
What are Bitcoin Ordinals? How Are Bitcoin Ordinals Different from NFTs? - hopefully, this article can help you to get some knowledge.
