For more than ten years, Bitcoin Purely a digital currency – but now its horizons are broader than ever.
Since 2023, non-fungible tokens (NFTs) have entered the Bitcoin network – known as Bitcoin ordinal – This opens up new frontiers for digital art, collectibles and blockchain culture.
Bitcoin ordinals are unique data embedded directly on single Satoshis (the smallest unit of Bitcoin), turning them into unique digital artifacts. What’s unique about Bitcoin NFTs, how do they work, and why should you explore them?
Here is our complete guide to Bitcoin’s 2024 ordinal.
What is Bitcoin ordinal?
Bitcoin Ordinal was launched in January 2023 by famous Bitcoin developer Casey Rodarmor. He takes advantage of the new features (smart contract enhancements) in Bitcoin’s November 2021 Taproot upgrade, which allows data to be engraved on a single Satoshi without affecting the core Bitcoin network, in an effort to create a more fair, just and authentic blockchain Department of Art Ecology.
The rise of Ordinals led to the creation of the BRC-20 standard, a Bitcoin asset standard equivalent to ERC-20 for NFTs on Ethereum, followed by Runes, a more efficient Bitcoin art standard. This has led to existing NFT giants trying to connect to Bitcoin or build new collections on Bitcoin — including BTC DeGods and Yuga Labs’ TwelveFold.
After a brief period of tracking Bitcoin ordinal transactions via public Google Sheets, a rapidly growing number of wallets, exchanges, and platforms have begun supporting Bitcoin ordinal numbers. Some of the most popular Bitcoin Ordinals wallets include Xverse, Leather, and OKX Wallet, while the largest Ordinals markets include Magic Eden, OKX, and Gamma.
Since then, the Bitcoin ordinal has continued to grow in importance. Stacks emerged as a Bitcoin-specific “Layer-2 style” network—building its own NFT ecosystem in the Bitcoin space. The smart contract functionality of Bitcoin Ordinals is also being further improved, and although its popularity continues to grow, Ordinals are still considered a niche market in the broader NFT industry.
How does Bitcoin serial number work?
Bitcoin ordinals work slightly differently than NFTs on Ethereum.
On Ethereum, information about assets is added to smart contracts on the network—the artworks themselves are often stored on decentralized IPFS services such as Pinata or Infura. In Bitcoin, the data is engraved on each satoshi on the Bitcoin network, making the sequence number completely on-chain.
Since each Satoshi on Bitcoin is mined sequentially, the maximum number of sequence numbers is limited: approximately 2.1 trillion – and since each individual Satoshi exists normally on Bitcoin, they can be purchased in a similar manner , sell and trade their NFTs on Ethereum.
In addition to these differences, Ordinals also have a built-in rarity layer that Ethereum-based NFTs do not have. A specific satoshi (regardless of any data inscribed on it) is more popular than other satoshis, such as the first satoshi of a new block, a new epoch, or a new cycle. Rodarmor created the Rodarmor Rarity Index, which divides all Clints into 6 different rarities from Common to Mythic, adding another layer of perceived value to the ordinal numbers.
The Bitcoin community has had mixed reactions to the serial numbers. Critics argue that ordinal numbers muddy Bitcoin’s waters, undermine its status as the leading digital currency, and lead to increased network congestion and higher fees. Supporters believe that ordinal numbers expand Bitcoin’s existing functionality and open up new avenues for the success of Bitcoin and digital art.
Regardless of these debates, serial numbers have gained steady traction—and look set to continue to do so.
The history of Bitcoin ordinal numbers
Serial numbers are not the first attempt to add extra functionality to Bitcoin.
Counterparty, which debuted in 2014, attempted a more basic approach but faced limitations in scalability, storage capacity, and scripting, causing it to fall out of favor.
In November 2021, Bitcoin’s Taproot update opened the way for a more efficient solution – in January 2023, Casey Rodarmor introduced the Ordinals protocol on Bitcoin.
In March 2023, the BRC-20 token was launched, making $ORDI the first fungible token on Bitcoin, worth over $1 billion just one month later. This success has been accompanied by the emergence of a large number of new Ordinals projects, such as Taproot Wizards, Ordinal Punks, and Bitcoin Frogs, which have rejected leading NFT marketplaces such as Magic Eden and OKX to add Ordinals support.
By the end of 2023, more than 10 million serial numbers have been registered, and this number will only continue to grow in 2024, with more dedicated tools, platforms, and enthusiasts than ever before.
What is the future of Bitcoin ordinal numbers?
Bitcoin Ordinal focuses on several key areas for the future.
Direct improvements to the Ordinals protocol to address ongoing scalability issues will be key – including further development of the Stacks L2 ecosystem. Various avenues for further innovation remain open, such as DeFi, tokenized securities, digital art advancements, etc., and with the changing regulatory environment (especially in the United States), Ordinals may become a key gateway for user adoption.
The popularity of Bitcoin serial numbers demonstrates how the Bitcoin ecosystem is adapting to current trends or consumer habits—and as they continue to evolve, serial numbers present exciting opportunities for artists, collectors, and investors alike.
Whether you’re for or against serial numbers, their influence only looks to be growing over time.
