Ordinals (ORDI) is a cryptocurrency that operates on the blockchain-based Ordinals protocol. It aims to provide a decentralized marketplace for digital assets, mainly digital content inscribed on satoshis, the smallest denomination of Bitcoin (BTC).

The Ordinals protocol allows users to write or inscribe information such as text, pictures, audio, and video onto individual satoshis, leveraging the Taproot upgrade introduced to the Bitcoin network on November 14, 2021. Ordinals bring the power of NFTs to the Bitcoin blockchain, letting users create digital assets as inscriptions on satoshis.

These inscribed satoshis hold the information associated with the digital content, and the data is stored in the witness of the Bitcoin transaction. Ordinal inscriptions mainly consist of text and pictures due to the size limitations of Bitcoin blocks.

Furthermore, the Ordinals project aims to develop seamless methods for inscribing on Bitcoin and wallets, enabling users to view the created Bitcoin NFTs. Several projects and platforms, such as Gamma and Hiro Wallet, have begun offering services to facilitate the creation and storage of Ordinal Inscriptions. Such initiatives provide a user-friendly and accessible environment for individuals to buy, sell, and trade digital assets using the Ordinals protocol.

Ordinals (ORDI) coin is the first cryptocurrency developed using the BRC-20 standard on the Bitcoin network. Most of the ORDI supply was airdropped to Ordinals protocols users.

The Ordinals protocol is a system that allows for the creation of Bitcoin NFTs by attaching additional data to individual satoshis, the smallest denomination of Bitcoin. Ordinals NFTs are linked to Bitcoin as they are pegged to individual satoshis, maintaining a connection to the underlying asset. This connection is achieved through a common numbering system that assigns each satoshi a serial number based on its mining order.

Here's how the Ordinals protocol works:

Inscription Process

The process of creating Ordinals involves inscribing or writing data of the content onto the witness of a Bitcoin transaction. This inscription process is possible through the Taproot upgrade, launched on the Bitcoin network on November 14, 2021.

Creating an Ordinals Wallet

To start with Ordinals, users must download Bitcoin Core and sync their node to the blockchain. After the synchronization, they can create an Ordinals wallet and send some satoshis to the wallet.

Numbering and Tracking

Each satoshi is given a unique serial number called an Ordinals Serial Number to track the transfer and ensure uniqueness. These serial numbers are attached to satoshis based on the order in which they were mined and transferred, hence the name Ordinals.

Storing Data on the Bitcoin Blockchain

Ordinals differentiate themselves from traditional NFTs by directly inscribing the data onto individual satoshis, which are included in blocks on the Bitcoin blockchain. The NFT's data, such as images, videos, or other content, is stored directly on the blockchain, enhancing security and immutability.

The founder of the Ordinals protocol is Casey Rodarmor. He developed the Ordinals protocol and has been actively working on it since 2022. Casey Rodarmor drew inspiration from Bitcoin's pseudonymous founder, Satoshi Nakamoto, and incorporated Ordinal theory into the protocol.

Bitcoin Ordinals were introduced in January 2023 to generate Bitcoin NFTs by attaching information to individual satoshis. While NFTs have traditionally been minted and used on blockchains like Ethereum, Solana, and BNB Chain, the Ordinals project recognized the potential for non-fungible tokens to have a place on the Bitcoin blockchain.

Ordinal Theory is a proposed methodology within the context of Bitcoin. It aims to identify each satoshi through a serial number and track them in the Bitcoin coin supply, from initial minting to their entire lifespan of transactions. Like NFTs, ordinal inscriptions are digital assets inscribed on a satoshi in the Bitcoin network.

This process became possible thanks to the Taproot upgrade. The Taproot upgrade, launched on November 14, 2021, made it possible to inscribe data directly onto individual satoshis in the Bitcoin network.

As of July 2023, over 9 million inscriptions have been created using the Ordinals protocol since its launch.

Several factors may make Ordinals crypto a potentially good investment:

Unique Utility Powered by Satoshis

Ordinals offers a unique numbering scheme for satoshis, allowing the tracking and transfer of individual satoshis. It provides a decentralized way for creators, artists, and businesses to authenticate and protect their intellectual property by inscribing digital content on the Bitcoin network. This functionality sets Ordinals apart from other cryptocurrencies and may contribute to its long-term value.

High Volatility Protects Against Price Manipulation

Ordinals have been characterized by high volatility, indicating wide price fluctuations and protection against price manipulation. While high volatility comes with increased risk, it can also present opportunities for traders and investors who can capitalize on price movements.

Growing Market Presence of Bitcoin NFTs

Ordinals have gained attention and have experienced growth since its introduction in January 2023. Its recent increase in holders by 13.8% in just one week demonstrates strong growth and investor interest.

Although it is impossible to offer a reliable ORDI price prediction over any timeframe, several factors could impact the price action and volatility in the Ordinals cryptocurrency:

Demand For Bitcoin NFTs

Bitcoin Ordinals protocol allows for the creation of non-fungible tokens (NFTs) on the Bitcoin blockchain. The demand for NFTs, which represent unique digital assets, can significantly impact the value of the protocol. The ability to trade and own NFTs on the Bitcoin network may attract new users and drive demand for Bitcoin.

Market Perception and Adoption of Bitcoin Ordinals

The cryptocurrency communitys perception and adoption of Bitcoin Ordinals and broader market participants can influence its value. Positive sentiment and increased adoption can lead to greater protocol utilization and potentially increase value. Conversely, negative sentiment or lack of adoption may impact its growth.

Ordinals Protocols Use Cases and Applications

The versatility of the Ordinals protocol in supporting various use cases and applications can affect its value. Ordinals enable the attachment of references to files stored in the witness data of the Bitcoin blockchain. The ability to inscribe different types of files, such as images, audio, videos, and video games, expands the potential applications and utility of the protocol.

Scalability and Network Efficiency of Bitcoin Blockchain

As more files and inscriptions are added to the Bitcoin blockchain using the Ordinals protocol, scalability and network efficiency become essential factors. The protocol's ability to handle increased transaction volume without negatively impacting network performance or increasing fees can influence its value. Scalability solutions may be relevant in this context, such as adopting off-chain or layer-two solutions.

Future Developments in Ordinals Protocol

ongoing developments and upgrades to the Bitcoin network, including scalability, security, and functionality improvements, can significantly impact the value of the Ordinals protocol. Enhancements that address potential limitations or expand the protocol's capabilities can drive interest and value.

ORDI is a BRC-20 native utility token associated with the Ordinals project, which aims to provide a decentralized marketplace for digital assets. The Ordinals project offers user-friendly features such as a drag-and-drop NFT creator and an integrated wallet for storing digital assets.

The ORDI token is used within the platform to facilitate transactions. It allows users to buy, sell, and trade digital assets in a decentralized, transparent, and secure manner.

You can also trade ORDI token against other cryptos on the BYDFi Spot Market and other supported platforms to make the most of changing market conditions. Buy or sell ORDI or hold it long-term if you believe in the future potential of Bitcoin Ordinals and BRC-20 tokens. Remember to enter any new trading decisions only after you do your own research (DYOR).

Here are the various ways you can use the Ordinals protocol:

Create Bitcoin-based NFTs

The Ordinals protocol enables the creation of Bitcoin-based NFTs. Unlike traditional NFTs on Ethereum and other blockchains, the data for Ordinals inscriptions is stored directly on the Bitcoin blockchain, making them permanent and immutable.

Mint Digital Art and Collectibles

Ordinals allow artists and creators to mint and trade digital art and collectibles directly on the Bitcoin blockchain. Each inscribed satoshi represents a unique digital artifact that can be held in compatible wallets and transferred using Bitcoin transactions. It expands the use cases for digital art and collectibles within the Bitcoin ecosystem.

Make Bitcoin Blockchain More Versatile

Introducing Ordinals brings new functionality to the Bitcoin network, making it more than digital gold or a currency alternative. With Ordinals, developers can innovate on the Bitcoin blockchain, opening up possibilities for creating decentralized applications (dApps), smart contracts, and other innovative solutions on Bitcoin's secure and established infrastructure.

Drive Growth and Scalability in Bitcoin Ecosystem

Adopting the Ordinals protocol can drive growth and scalability in the Bitcoin ecosystem. By providing more utility, bigger block sizes, and more transactions, Ordinals incentivize miners and contribute to expanding the total value transacted and secured over the Bitcoin blockchain.

Tamper-proof and Transparent Data Storage

Ordinals inscriptions are stored directly on the Bitcoin blockchain, making them durable, immutable, and secure. This characteristic makes Ordinals suitable for applications requiring tamper-proof and transparent data storage, such as proof of ownership, certificates, and historical records.

Here are some notable Bitcoin NFT collections created using ordinals:

Ordinal Punks

A collection paying homage to CryptoPunks, consisting of 100 NFTs minted within the first 650 Inscriptions on the Bitcoin chain. The generative PFP collection features 192x192 pixel images created by FlowStay.

Taproot Wizards

Starting from Inscription 652, this collection includes 2,101 hand-drawn NFT wizards created by Udi Wertheimer in collaboration with Luxor, a major Bitcoin mining company. The first inscription in the collection, Inscription 652, is known for being the largest block and transaction in Bitcoin's history at 4MB.

Bitcoin Rocks

Inspired by early Ethereum NFT collections like Ether Rocks, Bitcoin Rocks channels a similar spirit and aesthetic. The collection is supply capped at 100 rocks, and the first rock was minted at Inscription 71. These NFTs are listed for as much as 1,000 BTC/13,858 ETH.

Timechain Collectibles

The Series 1 Timepieces from the Timechain Collectibles collection consists of 21 highly limited Ordinals that depict various forms of timepieces, such as cyberpunk watches, pocket watches, and ancient calendars. These pieces were minted on January 30, 2023.

Ordinal Loops

The Ordinal Loops project aims to represent the philosophy and ethos of Bitcoin through Bitcoin Artifacts. The project has created two chapters, the first being the Do Not Fiat series, which showcases Bitcoin's role in changing the world.