The Ordinals protocol was launched on the mainnet by developer Casey Rodarmor on January 20, 2023, at Bitcoin. It assigns a unique serial number to each satoshi (the smallest unit of Bitcoin) through a numbering system called “Ordinal Theory.”Users can leverage this system to “engrave” data such as images, text, and videos onto individual satoshis, thereby creating unique digital assets on the Bitcoin blockchain, similar to non-fungible tokens (NFTs) on other blockchains.
The emergence of Ordinals has greatly expanded the use cases of Bitcoin and given rise to a rapidly developing ecosystem. This ecosystem primarily consists of the following components:
Core Protocol and Standards
- Ordinals Protocol: As the foundation, it defines how to identify, track, and inscribe individual satoshis, making digital collectibles on Bitcoin possible.
- BRC-20 Token Standard: Launched in March 2023 by the anonymous developer Domo, BRC-20 is an experimental, Ordinals-based standard for fungible tokens.It allows users to inscribe token information onto satoshis via JSON files, thereby creating and transferring tokens on the Bitcoin network—similar to the ERC-20 standard on Ethereum, but without the need for smart contracts. ORDI is the first BRC-20 token.Deploying, minting, and transferring BRC-20 tokens all require an inscription operation.
- Runes Protocol: Launched by Casey Rodarmor in April 2024, the Runes Protocol aims to address the limitations of BRC-20 by providing a more efficient and streamlined solution for non-fungible tokens on Bitcoin.
Major Projects and NFT Collections
Numerous well-known NFT projects have emerged within the Ordinals ecosystem, with some of the most representative ones including:
- NodeMonkes: Hailed as the “CryptoPunks” of the Ordinals ecosystem, it is one of the 10,000 most famous PFP (profile picture) collections on Bitcoin.
- Runestone: Launched in March 2024, it distributed over 112,000 Ordinals assets to eligible collectors via an airdrop and is one of the collections with the highest market value on Bitcoin.
- Taproot Wizards / Quantum Cats: Taproot Wizards is an imaginative project aimed at reigniting the “magic” of Bitcoin, with its collection directly inscribed on satoshis.
- Bitcoin Puppets: Another highly anticipated Ordinals collection.
- Ordinal Maxi Biz (OMB): Launched in collaboration between ZK Shark, Tony Tafuro, and artist Nullish, it is known for its unique eye-color themed series (blue eyes, red eyes, green eyes).
- Bitcoin Frogs: The first 10,000-piece Ordinals project to be minted for free via the Lightning Network and sold out, playing a significant role in community building.
- Sub10k: Contains the first 10,000 inscriptions on the Bitcoin blockchain and holds historical significance.
- Ordinal Punks: A project paying homage to CryptoPunks, it was one of the first 100 Ordinals collections.
Infrastructure and Tools
To support the development of the Ordinals ecosystem, various types of infrastructure and tools have emerged:
- Wallets: Wallets that support Ordinals and BRC-20 are essential for users to manage their digital assets. For example, Xverse and UniSat Wallet are well-known Ordinals wallets.
- Trading Markets: Platforms that facilitate the trading of Ordinals and BRC-20 tokens. Examples include OrdinalsWallet, UniSat, Gate.io, and BitGet. Horizon Market now supports the creation, listing, and purchase of Ordinals inscriptions and plans to integrate more Bitcoin NFT protocols.
- Engraving Tools and Launchpads: Tools and platforms that help users create and issue Ordinals and BRC-20 tokens. OrdinalsBot is one such example; it offers engraving services, a launchpad, and enterprise APIs, and has partnerships with BRC-20 creators such as Domo and Marathon Digital Holdings.
- Data Analytics Platform: Provides data and analytics services related to the Ordinals ecosystem.
- Merlin Chain: As a Layer 2 solution, Merlin Chain partners with Ordinal Hive to provide professional traders with a low-cost, high-speed Ordinals trading protocol.
Community and Events
- Ordinals Summit: The Ordinals community regularly hosts events, such as the Ordinals Summit held in partnership with Inscribing Atlantis, which aims to explore the future of Ordinals, Runes, BRC-20, and scaling solutions like Bitcoin.
- Open Ordinals Institute: The institute’s president, Erin Redwing, is also a key contributor to the Ordinals community.
Future Outlook
The Ordinals ecosystem continues to evolve. Several projects and protocols are exploring broader applications, including:
- DeFi Integration: Combining Ordinals with decentralized finance (DeFi) to enable NFT lending, collateralization, and other functions.
- Metaverse and VR Integration: Integrating Ordinals into the metaverse for use in virtual galleries, exhibition spaces, land monetization tools, fashion, and wearables.
- AI Integration: Utilizing AI to generate NFTs and automate smart contracts.
- Enterprise-Grade Solutions: Providing NFT solutions for businesses, as well as institutional-grade custody services for high-value NFTs.
Overall, the Ordinals project and its ecosystem have brought unprecedented innovation and vitality to the Bitcoin network by introducing NFTs and fungible tokens to the Bitcoin blockchain.
