Ordinals (Bitcoin)

Ordinals is a protocol that allows arbitrary data — images, text, code — to be inscribed directly onto individual satoshis (the smallest unit of Bitcoin), turning each satoshi into a unique, identifiable, transferable digital artifact. The result is Bitcoin-native NFTs.

By Crypto University EditorialLast updated June 4, 2026

BRC-20RunesNFT

✦ Key Insight

Ordinals brought a new asset class to Bitcoin and a new fee-paying demand to the base layer, materially affecting miner revenue and block space competition. For traders, it created an entire market — Bitcoin NFTs, BRC-20 tokens, Runes — with distinct liquidity venues and patterns.

✕ Common Misconceptions

Treating Ordinals like ERC-721 NFTs — they require specialized wallets and indexers.

Spending an inscribed satoshi as regular Bitcoin and losing the inscription.

Ignoring high fee periods when minting or transferring.

Detailed Explanation

How It Works: A satoshi is identified by its ordinal number — its position in the total Bitcoin supply since genesis. The Ordinals protocol uses an off-chain indexer to assign these numbers and to read inscription data embedded in the witness portion of Taproot transactions. Owning the satoshi means owning the inscription.

FAQs:

Are Ordinals "real" NFTs? Yes, in the sense that they are unique, on-chain digital assets — just with a different design than EVM NFTs.
Will Bitcoin core protocol change to support them better? Ordinals work today via existing Bitcoin features; deeper protocol changes are debated.

In Practice

“An artist inscribes a 1-of-1 image onto a specific satoshi. The satoshi can be transferred like any other UTXO, and the inscription travels with it — readable by any Ordinals-aware wallet or marketplace.”

Dig Deeper

NFT

Non-Fungible Token — a unique digital asset stored on a blockchain that represents ownership of digital content.

BRC-20

BRC-20 is an experimental token standard for issuing fungible tokens on the Bitcoin blockchain using the Ordinals protocol. It inscribes JSON-formatted text into individual satoshis to define token deployments, mints, and transfers.

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