Originally aired on May 10, 2023
Bitcoin is no longer just for payments, as ordinals have paved the way for NFTs on the Bitcoin blockchain. Ordinals give unique IDs to each mined sat, allowing for images and other data to be inscribed into them, thus creating an NFT that can be bought and sold.
What is an ordinal and how does it work on Bitcoin?
- The ordinal protocol gives each mined sat a unique ID.
- This ID allows for data like images to be inscribed into the sat, making it an NFT.
- All data is 100% on-chain, making Bitcoin a secure and decentralized database.
- The Taproot upgrade unlocked unlimited data storage on Bitcoin.
- However, storing data on Bitcoin comes with a higher cost due to the replication and decentralization across all full Bitcoin nodes.
- Ordinals are becoming increasingly popular, with high volume on their marketplace and big players like Yuga Labs, Bugatti, and d-gods from Solana participating.