Bitcoin Ordinals NFTs are based on the Ordinal theory through the Ordinals protocol, which was developed by Casey Rodarmor. The aim of Ordinal theory is to give each Satoshi (the smallest denomination of Bitcoin) individual identities, allowing them to be tracked, transferred, and imbued with unique meanings through inscriptions.

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.

The main advantage of Ordinals NFTs, as compared to NFTs on other blockchains, is that the entire metadata is contained 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.

Key Takeaway

Ordinals are a means of creating Bitcoin NFTs by inscribing information onto individual Satoshis.

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