Ordinals
A system for numbering individual satoshis so data can be inscribed onto them, creating NFT-like artifacts on Bitcoin.
Casey Rodarmor launched the Ordinals protocol in January 2023. It assigns every satoshi a serial number based on the order it was mined, which lets a specific satoshi be tracked and traded. An inscription attaches content, like an image or text, directly to one satoshi using Bitcoin transaction data. The result behaves like an NFT, but the media lives fully on-chain.
The launch was divisive. Inscriptions filled blocks and drove fees to multi-year highs, frustrating users who see Bitcoin as a payment network. Others welcomed the new fee demand and use case. Ordinals also opened the door to BRC-20 tokens built on the same mechanism.
Related terms
An experimental token standard that issues fungible tokens on Bitcoin by embedding text data inside individual satoshis.
SatoshiThe smallest unit of bitcoin, equal to one hundred-millionth of a single coin.
NFT (Non-Fungible Token)A blockchain token that represents ownership of a unique item, where no two units are interchangeable.
On-ChainData or activity recorded directly on a blockchain, visible to anyone and validated by the network.