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Author: Admin | 2025-04-27
Satoshi to be different from another, hence becoming non-fungible and enabling the creation of Bitcoin NFTs. This process is on-chain and does not rely on sidechains, smart contracts, or tokens other than Bitcoin. The Ordinals protocol was launched on the Bitcoin mainnet in January 2023 and has quickly gained popularity. In fact, at the time of writing, 63 million inscriptions have been minted on the Bitcoin network since launch, generating ~6,370 bitcoin-worth (~US$430 million) of fees.In this report, we explore several key developments in the Ordinals protocol, as well as its significance and controversies.1.2 Overview of DevelopmentOrdinals represent one of the recent significant developments in the Bitcoin blockchain. It expanded the use cases of the Bitcoin network and explored new sources of demand for Bitcoin blockspace. Casey Rodarmor, the creator, described this protocol as kicking off “an era of fun and innovation on Bitcoin.”Early Development and Projects on Ordinals ProtocolOrdinals theory provides a numbering system for Satoshis (sats), according to the order they were mined. Additionally, the orders of sats are associated with their rarity which can be identified as “common”, “uncommon”, “rare”, “epic”, “legendary”, or “mythic”. Common: Any sat that is not the first sat of its blockUncommon: The first sat of each blockRare: The first sat of each difficulty adjustment period (every 2,016 blocks)Epic: The first sat of each halving epoch (every 210,000 blocks)Legendary: The first sat of each “cycle”, when the difficulty adjustment period and halving coincide which happens every six halvingsMythic: The first sat of the genesis blockAs a result, Bitcoin token holders can track and identify the rarity of their sats. A market has also been created where these uncommon or rare sats are traded. Soon after, with inscriptions, a new numbering system began starting from 0, numbering each inscription in the order they were inscribed. The genesis inscription (#0) was a pixel art of a skull, created by Casey Rodarmor. This was inscribed on sat #1252201400444387. With this, there are two levels of numbering, and hence rarity – sats number and inscription numbers. Apart from the numbers, market attention slowly shifted to the content or images inscribed on sats. Since the protocol launched in January 2023, it has garnered much market attention with cumulative ~150,000 inscriptions in one month, according to Dune. Inscriptions were mostly image-based (or digital artefacts) in the early days for creation of NFTs.Some of the earlier projects on the Ordinals
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