Bitcoin’s new Ordinals protocol has caused a stir in the world of Web3 since its launch on January 21. Despite the buzz, the protocol remains shrouded in mystery, with less than 40,000 Ordinals existing at the moment. This scarcity is partly due to the lack of knowledge on how to buy and create them, which presents potential opportunities but also higher risks. In this article, we’ll explain what Ordinals are, how they differ from NFTs, and guide you on how to find, buy, and store them safely.
What are Ordinals?
Each Bitcoin is divided into 100,000,000 units called satoshis. The Ordinals protocol allows those who run Bitcoin nodes to inscribe data onto each satoshi, resulting in an Ordinal. This data inscribed on Bitcoin can include smart contracts and enable NFTs. In simple terms, Ordinals are NFTs that can be minted directly onto the Bitcoin blockchain.
How are Ordinals Different from NFTs?
NFTs on Ethereum often reference off-chain data on the Interplanetary File System (IPFS), which can be changed using dynamic metadata. This ability to change an NFT’s metadata is the deficiency that Ordinals seeks to address. Unlike NFTs, Ordinals have all their data inscribed directly onto the blockchain and do not have creator royalties attached to them. According to the creator of Ordinals, Casey Rodarmor, Ordinals are “complete” in that all the data is inscribed on-chain, while NFTs are “incomplete” because they require off-chain data.
The Most Notable Ordinals Inscriptions
Since its launch, Ordinals have garnered significant attention, with individual pieces selling for hundreds of thousands of dollars just weeks later. Some of the most interesting and valuable Ordinals inscriptions include Ordinal Punks, Bitcoin Rocks, and pieces from the first-ever 10k collections.
How to Buy and Trade Ordinals
Step 1: Set Up a Sparrow Wallet
To hold Ordinals, you need to set up a Bitcoin wallet that allows enough customization to receive Ordinal inscriptions. Sparrow Wallet fits the bill.
Step 2: Set Up Your Wallet(s)
To use Sparrow wallet with Ordinals, follow this detailed tutorial on Github to create an Ordinal-compatible wallet. Note that this wallet is only for receiving Ordinals and should not be used to send or receive BTC.
Step 3: Acquiring an Ordinal
You can acquire an Ordinal by running a node and inscribing it yourself, finding an Ordinal owner and buying directly from them, or using a service to inscribe an Ordinal without running your own node. As there are no major Ordinals marketplaces yet, caution and trust are essential when proceeding.
To mint meaning TO INSCRIBE Bitcoin Ordinal (BTC nft basically) you may use Ordinals Bot by The Satoshibles NFT collection team, which will inscribe an Ordinal on your behalf.
Gamma also has an Ordinal inscription service.
In conclusion, Ordinals offer an exciting opportunity in the world of NFTs, but they also present higher risks. With the right knowledge and caution, you can safely explore the potential of Ordinals and add them to your collection.