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What are bitcoin ordinals?

Bitcoin Ordinals are a way for satoshis (individual units of bitcoin) to be numbered, identified, and even inscribed with information—transforming them into non-fungible tokens (NFTs). A satoshi, or sat, is the smallest unit of bitcoin and is named after Bitcoin’s creator, Satoshi Nakamoto.

Are bitcoin ordinals NFTS?

Bitcoin Ordinals are not NFTs, but they have some similar qualities. For example, the value of each Ordinal is completely unique. — The information for Ordinals is stored completely on-chain, with some calling them “Digital Artifacts”.

How does bitcoin work?

In the Bitcoin network, each Bitcoin is broken into 100,000,000 units termed "satoshis." The Ordinals protocol then works by allowing users, those who operate Bitcoin nodes, to individually inscribe each satoshi with data, which are not limited to JPEGs but even videos and audio files, and in doing so create an Ordinal.

What is a bitcoin inscription?

On the other hand, Ordinals have their data directly stored on-chain, instead of the directory-like connections that conventional NFTs have to servers, and this makes them true immutable digital artifacts that are interwoven into the Bitcoin network, which is why they’re also termed "inscriptions."

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