Bitcoin Ordinals: Everything You Need to Know

Bitcoin has long been viewed primarily as a store of value, often referred to as "digital gold." This perception has begun to change with the introduction of Bitcoin Ordinals. Bitcoin Ordinals provide a unique way to create digital assets directly on the Bitcoin blockchain, similar to non-fungible tokens (NFTs) but with distinct characteristics. This article will explore Bitcoin Ordinals, how they work, and how you can buy them on various marketplaces.

Before You Get Started

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What Are Bitcoin Ordinals?

Bitcoin Ordinals are a method of inscribing data onto individual satoshis, the smallest unit of Bitcoin. Each satoshi is assigned a unique serial number based on the order in which it was mined. This system of assigning numbers is known as ordinal theory, which enables each satoshi to be tracked individually.

When data - like images, videos, or text - is inscribed onto a satoshi, it transforms that satoshi into a unique digital asset. The inscription process uses the security and decentralization of the Bitcoin blockchain, making these assets immutable and verifiable.

The Ordinals protocol was launched in January 2023 by developer, Casey Rodarmor, and has since gained significant traction within the cryptocurrency community. Bitcoin Ordinals operate directly on the Bitcoin mainnet, which is inherently different from NFTs on platforms like Ethereum.

How Do Bitcoin Ordinals Work?

The mechanics behind Bitcoin Ordinals involve two key components:

• Ordinal assignments: Each satoshi is given a unique ordinal number based on its mining sequence. The ordinal number enables users to identify and track individual satoshis.

• Inscriptions: Users can inscribe data onto these numbered satoshis. The data is stored within the witness portion of a Bitcoin transaction, thanks to updates from the Taproot upgrade in 2021, which enables larger data sizes (up to nearly 4 MB).

This combination enables users to create unique digital assets that inherit the security and immutability of the Bitcoin blockchain. Once inscribed, an ordinal cannot be altered or removed, ensuring its authenticity and permanence.

The Benefits of Bitcoin Ordinals

• Security: Leveraging Bitcoin's established Proof of Work consensus mechanism, Ordinals benefit from robust security features that have been tested over more than a decade.

• Immutability: Once data is inscribed onto a satoshi, it becomes permanently part of the blockchain, ensuring that ownership and provenance are verifiable and tamper-proof.

• Scarcity: With billions of satoshis available, there is significant potential for creating unique and rare digital collectibles.

Comparing Bitcoin Ordinals to Traditional NFTs

Bitcoin Ordinals have introduced a fresh perspective on digital assets within the cryptocurrency landscape, particularly in comparison to traditional non-fungible tokens (NFTs). While both Bitcoin Ordinals and traditional NFTs represent unique digital items, they differ significantly in their underlying technology, functionality, and ecosystems.

How to Buy Bitcoin Ordinals NFTs on Marketplaces

Buying Bitcoin Ordinals requires some preparation but is an exciting venture into the world of digital collectibles. To buy Bitcoin Ordinals, you'll need a compatible Bitcoin wallet that supports ordinal inscriptions.

Before you can purchase any ordinals, you'll need to fund your Bitcoin wallet. You can buy Bitcoin through exchanges, like Coinbase or Binance, or simply navigate to the “Buy” screen in Trust Wallet.

Several marketplaces specialize in buying and selling Bitcoin Ordinals:

• Magic Eden: A multi-chain marketplace that has integrated support for Ordinals.

• Gamma: Features a no-code launchpad for artists to create Ordinals.

• OKX NFT Marketplace: Enables bulk buying and has zero listing fees.

• Unisat: A decentralized application for creating and trading Ordinals.

• Ordinals Market: Provides a user-friendly interface for browsing and purchasing Ordinals.

Once you’ve selected a marketplace you will need to connect your wallet. You can do this in the “Discover” tab of Trust Wallet. You will then be able to browse through available ordinals or search for specific ones. When you find an ordinal you want to purchase, click on it for more details and confirm your purchase by signing the transaction in your wallet.

Tips for Buying Bitcoin Ordinals

Do your research. Prices can fluctuate significantly based on market demand and uniqueness. Look into the history and significance of an ordinal before purchasing. Stick to well-known platforms that have been vetted by the community to ensure safety in transactions. Always keep your wallet's private keys safe. Never share them with anyone, as doing so could compromise your assets.

How to Buy Bitcoin Using Trust Wallet

You can buy crypto, including Bitcoin, using Trust Wallet, via our trusted partners. Here’s how:

• Select “Buy” from the home screen.

If using the mobile app:

• Search for “Bitcoin” or “BTC” and select it.

• Choose your preferred currency, then enter the amount of BTC you want to purchase.

• Select the third-party provider & payment method you’d like to use.

• Select the Buy button and complete the remaining steps.

If using the browser extension:

• Choose your preferred currency and amount, then choose Bitcoin (BTC)

• Select your preferred third-party provider.

• Complete the remaining steps.

Conclusion

Bitcoin Ordinals are an exciting development in the cryptocurrency space, merging the concepts of NFTs with the robust security features of the Bitcoin blockchain. By understanding how they work and how to navigate their marketplaces, you can participate in the Bitcoin ecosystem and enjoy unique digital collectibles that carry intrinsic value.

As this space continues to evolve, stay informed about new developments which will help you make educated decisions when buying or trading your own Bitcoin Ordinal NFTs. Happy collecting!

Disclaimer: Content is for informational purposes and not investment advice. Web3 and crypto come with risk. Please do your own research with respect to interacting with any Web3 applications or crypto assets. View our terms of service.

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Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.