{"id":8076,"date":"2025-08-01T12:35:25","date_gmt":"2025-08-01T12:35:25","guid":{"rendered":"https:\/\/paybis.com\/blog\/?post_type=glossary&#038;p=8076"},"modified":"2025-08-01T12:35:26","modified_gmt":"2025-08-01T12:35:26","slug":"ordinals","status":"publish","type":"glossary","link":"https:\/\/paybis.com\/blog\/glossary\/ordinals\/","title":{"rendered":"Ordinals"},"content":{"rendered":"<h2><a id=\"post-8076-_gefdobssmqxx\"><\/a>What Are Ordinals in Crypto?<\/h2>\n<p>Ordinals are a protocol that allows users to assign extra data, like images, audio, or text, to individual satoshis (1 sat = 0.00000001 BTC), making them unique and traceable. This creates Bitcoin-native digital artifacts, which function similarly to NFTs (non-fungible tokens) but live entirely on the <a href=\"https:\/\/paybis.com\/blog\/glossary\/what-is-bitcoin\/\">Bitcoin<\/a> blockchain.<\/p>\n<p>Unlike NFTs on Ethereum or Solana, which rely on smart contracts and often reference off-chain metadata, Bitcoin Ordinals store all data on-chain. This results in digital assets that are more permanent and resistant to censorship. Each inscribed Satoshi can be tracked using a unique ordinal number based on its mining order.<\/p>\n<p>Software engineer Casey Rodarmor launched the protocol in January 2023 and quickly sparked both excitement and debate within the Bitcoin community.<\/p>\n<h2><a id=\"post-8076-_ffx3bn771b0i\"><\/a>How Did the Ordinals Protocol Come About?<\/h2>\n<p>The creation of Ordinals was made possible by two major Bitcoin upgrades:<\/p>\n<ul>\n<li><strong>SegWit (2017):<\/strong> This upgrade allowed for more flexible data storage in Bitcoin transactions by introducing the concept of witness data.<\/li>\n<li><strong>Taproot (2021):<\/strong> Taproot further optimized transaction data and allowed for complex scripts to be embedded more efficiently.<\/li>\n<\/ul>\n<p>Together, these upgrades enabled larger, arbitrary data to be stored directly on-chain, without requiring a change to Bitcoin\u2019s core <a href=\"https:\/\/paybis.com\/blog\/glossary\/what-is-consensus\/\">consensus<\/a> rules.<\/p>\n<p>Ordinals use a numbering scheme to index every satoshi in existence, giving each one a unique serial number (or ordinal). Once inscribed with content, these satoshis become &#8220;digital artifacts&#8221; that can be bought, sold, and traded like NFTs.<\/p>\n<h2><a id=\"post-8076-_as18orqpu7ju\"><\/a>What Can Ordinals Be Used For?<\/h2>\n<p>Ordinals enable a wide range of creative and functional uses on Bitcoin, including:<\/p>\n<ul>\n<li><strong>Bitcoin-native NFTs:<\/strong> Digital artwork, memes, and collectibles can be stored entirely on-chain.<\/li>\n<li><strong>Text-based messages or documents:<\/strong> Developers have inscribed manifestos, poems, and code snippets.<\/li>\n<li><strong>Tokenization projects:<\/strong> Some developers have started building tokens on Bitcoin using Ordinals.<\/li>\n<li><strong>Preserving historical or cultural content:<\/strong> Because data inscribed via Ordinals lives permanently on Bitcoin, it&#8217;s seen as immutable and censorship-resistant.<\/li>\n<\/ul>\n<p>Platforms like Gamma, Magic Eden, and OKX now support Bitcoin Ordinals trading, helping create a growing ecosystem of collectors and builders.<\/p>\n<h2><a id=\"post-8076-_y8rjvqj7vbm1\"><\/a>How Do Ordinals Work?<\/h2>\n<p>Ordinals involve two key steps:<\/p>\n<ol>\n<li><strong>Ordinal numbering:<\/strong> Every satoshi is assigned an ordinal number based on when it was mined and its order within a block.<\/li>\n<li><strong>Inscription:<\/strong> Content (image, video, or HTML file) is embedded directly into the transaction&#8217;s witness data. This data is stored on-chain, turning the satoshi into a unique artifact.<\/li>\n<\/ol>\n<p>Because all data is stored natively on Bitcoin, Ordinals don\u2019t rely on centralized storage or external metadata. This differs from typical NFTs, which often point to files hosted off-chain (e.g., on IPFS or a web server).<\/p>\n<p>Ordinals are typically created using special inscription tools and runes or custom <a href=\"https:\/\/paybis.com\/blog\/how-custodial-non-custodial-wallets-differ\/\">wallets<\/a> like Xverse or Unisat that support viewing and managing inscribed sats.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ordinals are a protocol that enables individual satoshis (the smallest units of Bitcoin) to carry unique data like images, videos, or text, allowing NFTs on the Bitcoin blockchain without altering its core structure.<\/p>\n","protected":false},"featured_media":0,"template":"","glossary_letter":[298],"glossary_term":[276,284],"class_list":["post-8076","glossary","type-glossary","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Are Ordinals in Crypto? - Paybis<\/title>\n<meta name=\"description\" content=\"Discover the meaning of Ordinals in crypto. 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