Bitcoin Ordinals NFTs are based on ordinal theory, which aims to give each satoshi (the smallest denomination of Bitcoin) individual identities, where satoshis can be inscribed with data — such as pictures, text, or videos — through a Bitcoin transaction. This allows one satoshi to be different from another, hence becoming non-fungible, and each can be tracked, transferred, and imbued with unique meanings.
Unlike NFTs on other blockchains, Ordinals NFTs contain the entire metadata on the Bitcoin blockchain. In other words, Ordinals NFTs exist directly on the Bitcoin blockchain and not on a separate layer from Bitcoin. This is viewed by many as having an increased level of immutability.
