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Bitcoin has long been known as the first cryptocurrency. People like it because it is simple, safe, and acts like digital gold. But in early 2023, something new emerged that opened up more possibilities for Bitcoin without altering its core laws. People typically term that new idea “Ordinal in crypto.”
This tutorial covers everything in simple, practical words so you can decide if Ordinals should be in your portfolio, whether you’re new to Bitcoin or already have some.
An Ordinal is a technique for assigning each satoshi, the smallest unit of Bitcoin, its own unique identity. One Bitcoin is worth 100 million satoshis, which is the same as one dollar being worth 100 pennies.
Before Ordinals, all satoshis were the same; one satoshi was no different from any other. The Ordinals protocol fixed this by assigning each satoshi a serial number based on its mining sequence. Ordinal theory is the name of this system of numbers.
Users can add extra information to a satoshi once it has a number. This information can be in the form of pictures, text, music, video, or even code. The outcome is a one-of-a-kind digital object that only exists on the Bitcoin network. It’s like carving your name and a small picture onto a real coin. The coin is still money, but it now has something unique that makes it one-of-a-kind and easy to find.
These inscribed satoshis work like Bitcoin-native NFTs, but there’s one important difference: everything is kept directly on the blockchain, without relying on smart contracts or links to other sites. This means that Ordinals are less likely to be lost or censored than many other digital valuables.
Two simple principles must work together for the procedure to operate. Ordinal numbering keeps track of each satoshi from the moment it is mined. Every ten minutes or so, miners create new blocks, and the protocol numbers the satoshis in the exact order they appear.
Second, the inscription step puts information on that numbered satoshi. Users can now include up to 4 MB of data in the “witness” section of a transaction, thanks to the 2021 Taproot upgrade and SegWit, which increased the maximum transaction size. The data that comes with the inscribed Satoshi is included when you send it to another wallet. No smart contract or outside server, just Bitcoin.
If you’re new to this, think about sending a letter with a picture taped inside. The envelope (the satoshi) and what is within (the inscription) come together. People who have used this method before like that it keeps everything verifiable through Bitcoin’s proof-of-work security, and no extra layers or tokens are needed for basic inscriptions.
On January 20, 2023, Casey Rodarmor, a software developer, developed the Ordinals protocol. He made the open-source software available to the public so that anyone could number satoshis and write data on them. In just a few weeks, the first collections were out. These were Bitcoin Punks, Ordinal Penguins, and other collections similar to popular Ethereum NFTs but built on Bitcoin.
The moment was just right. The Taproot upgrade for Bitcoin had discreetly set up the network, and more and more people were interested in owning digital assets on a blockchain known for its security.
By the end of 2023, millions of inscriptions had been made, and stores that sold only Bitcoin Ordinals opened. The protocol also led to the creation of BRC-20 tokens, fungible tokens issued using the same inscription method. This added even more value to the ecosystem.
Most of the time, traditional NFTs on Ethereum or Solana merely save a link or metadata on the blockchain. The real image or video is stored on a different server, such as IPFS. The NFT could lose its content if the outside link breaks. Ordinals don’t have this problem at all because they put all the data on Bitcoin itself.
This on-chain method makes things more permanent and secure, but it also means that larger inscriptions incur higher transaction fees and take up more block space. Ordinals depend on Bitcoin’s slower but very robust base layer, while traditional NFTs benefit from rapid, low-cost smart contracts. Both methods have their pros and cons, and many collectors today have both types for different reasons.
Want to try Ordinals for yourself? Here’s how to start securely;
First, pick a wallet that works with it. Xverse, UniSat, and Trust Wallet’s Bitcoin functionality are all popular choices. These wallets can read inscriptions and display your Ordinals alongside your standard Bitcoin balance. Stay away from standard Bitcoin wallets that don’t support Ordinals; they could make it impossible to keep track of your assets.
Next, add a small amount of Bitcoin to your wallet. Start with enough to cover the costs (typically between $5 and $50, depending on how busy the network is) and the cost of the item you desire. You can get Bitcoin from any major exchange and send it to your Ordinals wallet.
Use a site like Magic Eden or Gamma to mint (make) your own Ordinal. You just need to upload your image or text, pay the inscription fee, and the site will handle everything else. The process takes only a few minutes, and once it’s complete, you own the asset completely on the blockchain.
If you want to buy an existing Ordinal, go to a marketplace like Magic Eden, OKX NFT, or Unisat. Look through collections, examine their rarity and history, link your wallet and complete the purchase.
Always check wallet addresses twice, and when you’re learning, start with small amounts. Don’t reveal your seed word, use hardware wallets for larger amounts, and look into each collection before you buy. The industry is amazing, but there are scammers, just like in any other part of crypto.
There are clear benefits to ordinals. They make people want more Bitcoin block space, which many think will help keep the network safe in the long run as block rewards decline. They bring in new users and developers who adore Bitcoin’s ideas but want to use them in new ways. Most importantly, they give you real ownership because no one else can change or take away your inscription.
Critics, on the other hand, say that big inscriptions cause momentary traffic jams and increased costs for regular Bitcoin users. Some longtime Bitcoin fans think the network should stick to straightforward payments rather than art or collectibles. Because of storage restrictions, excessively huge files are also not useful. These trade-offs are still the subject of good conversation in the community.
As Bitcoin grows, Ordinals are changing from just pictures to something more. Developers are looking toward on-chain games, decentralised social features, and even more advanced inscription-based token standards. The protocol runs on Bitcoin’s base layer, so it receives all the security updates the network receives.
Ordinals make it easy for new people to get into Bitcoin-native creation. For people who have been holding them for a while, they offer a new way to use sats that might otherwise sit around. The technology is here to stay, whether the market expands slowly or explodes again. It allows Bitcoin users additional ways to show value on the world’s most secure blockchain.
What is “Ordinal” in crypto exactly?
“Ordinal” refers to the Ordinals protocol, which numbers satoshis and lets you inscribe data on them, turning them into unique on-chain assets.
Are Bitcoin Ordinals the same as NFTs?
They are Bitcoin’s version of NFTs, but with fully on-chain storage for maximum permanence and security.
How much does it cost to create an Ordinal?
Fees vary with network congestion, from a few dollars for tiny text to $50-$300+ for larger images during busy times.
Which wallet is best for beginners?
Xverse or UniSat, both are free, non-custodial, and have simple interfaces for viewing and sending Ordinals.
Can Ordinals be lost or hacked?
Only if you lose your private keys are they as safe as your regular Bitcoin, provided you follow standard wallet security practices.
