An exploration of what ordinals are and an argument for why you probably shouldn't ignore them

I'll start by admitting I've been critical of Bitcoin inscriptions in the past. I questioned their value, their sustainability, and the very concept itself. In the past few weeks, however, I've come to realize that they're not just a passing fad - although they are definitely a fad right now. They're growing and evolving rapidly, and the idea is just too big to ignore.

Understanding their true significance demands a more in-depth examination of their essence and their role in the grand scheme of crypto. So let's delve deeper into the world of Bitcoin ordinals. It's a fascinating topic and once we break it down, I'm confident you'll see how intriguing it really is.

Note: technically "ordinals" is not the correct term to use when talking about most Bitcoin inscriptions, but it's become so widespread that I'll also just use the two terms interchangeably as it doesn't really matter for the purposes of this post.

The basic idea explained

Let's imagine Bitcoins as dollar bills Like dollar bills, new or old, crumpled or crisp, each Bitcoin holds the same inherent value. For all intents and purposes, Bitcoin and dollar bills are all identical. But, that's not actually true. Each bill has unique characteristics, like the serial number and the date it was printed.

Now, let's imagine we write something on a dollar bill. By doing so, we've altered that bill, making it distinct from the rest. This is where Bitcoin ordinals, or inscriptions, come into play. They allow us to inscribe directly onto a Bitcoin, transforming it into something unique. This inscription could be anything from text to art or even the code of a video game, as long as it doesn't exceed 4MB. Now, this 'inscribed' Bitcoin carries its inscription wherever it goes, akin to our written-on dollar bill.

How ordinals work on Bitcoin

Bitcoin ordinals are essentially data inscribed onto individual satoshis, the smallest unit of Bitcoin. They use a logical ordering system, known as ordinal theory, to assign each satoshi a unique number. Then, using this number, data can be inscribed into each individual satoshi.

These inscriptions could be a myriad of things like images, videos, audio, text, or even entire applications like a simplified version of DOOM. This unique feature has allowed the creation of Bitcoin-native NFTs without layer-2 solutions and without changes to the Bitcoin protocol. They work seamlessly with the network and store immutable information on the Bitcoin blockchain, leading to their popularity in the crypto community.

Brief discussion of BRC-20

Conceived by an anonymous developer named domo in 2023, BRC-20 tokens create fungible tokens natively on Bitcoin. Unlike popular token standards on EVM blockchains, they don't use smart contracts. Instead, they store a script file on Bitcoin and use it to attribute tokens to individual satoshis. BRC-20 tokens insert JSON data into ordinal inscriptions, allowing users to deploy, mint, and transfer tokens.

Although BRC-20 tokens are experimental, they've generated considerable interest within the Bitcoin community. Bitcoin infrastructure providers have begun integrating BRC-20 to enable their users to mint and exchange these tokens. Despite their limitations, BRC-20 tokens demonstrate the collaborative development potential within open-source communities, pushing the boundaries of underlying technology.

Why you should probably care

Now, you might be wondering, why does this matter? Why should we care about transforming Bitcoins or scribbling on them? Well, Ordinals have a broad spectrum of applications. They've opened up an entirely new sub-ecosystem within Bitcoin. For better or worse, that ecosystem exists and is not going anywhere.

If you're some who trades crypto then it's quite straight-forward: being early in this game might be a huge benefit. If Ordinals continue on their current trajectory, they could open up a slew of trading possibilities, and getting in now could mean getting in on the ground floor.

But if you're not a trader, I can already hear you thinking: "Isn't this just a fad? An experiment that might end up becoming nothing at all?" Well, yes, it's exactly that. Ordinals are an experimental technology. It's impossible to predict what exactly their future will be. However, isn't this sort of experiment exactly why you are in the crypto space? Many of us got involved with Bitcoin when it was still an experimental technology - or in fact because it was an experimental technology. Moreover, ordinals are booming right now, not just in the financial aspect, but in the development aspect. The boundaries of what is possible are continually being pushed with new discoveries and even though right now many of the projects are questionable at best, the tech they're using definitely is not.

So what are the "good" projects?

Choosing how to get involved with Ordinals can be tricky. I wish I had a one-size-fits-all answer for you, but I don't. It feels like there's a new Bitcoin Ordinals project being pushed into the world every minute and there's no denying that many of them are just looking to make a quick buck by jumping on the latest trend. However, getting involved with Ordinals doesn't have the equal spending large amounts of money on hyped-up token or nft projects. Maybe you don't want to trade anything at all but instead want to try inscribing something yourself? Or maybe you just want to learn about how it all works and where it'll go. My advice? Find an aspect of Ordinals that personally intrigues you, and use that as your springboard into exploring ordinals. Half the battle is just being involved, in any capacity, so you're ready and right there when something interesting does happen.

Edit: ohyeah, how to actually get started, good question lol. Probably check out this thread by whaleswoosh, one of the biggest "ordinal people" on twitter: https://twitter.com/waleswoosh/status/1660601584538079234