Each BTC is divided into 100,000,000 units called satoshis (or sats). Each satoshi has a serial number. And each satoshi can be traced back to the block where it was mined. You can track every satoshi that has been created. Therefore each satoshi is a separate unit with a serial number.
Sequence numbers are assigned to satoshis in the order in which they are mined. The first satoshi in a block has a sequence number of 0, the second satoshi has a sequence number of 1, then it runs until the last satoshi of the block.
Based on that characteristic of satoshi. The Ordinals protocol allows Bitcoin full node operators to write data per satoshi. This creates a unique version that can be tracked on-chain.
And when you want to move those satoshis, you can transfer them from wallet to wallet the same way you move BTC. But currently there are only a very small number of wallets that support receiving Bitcoin NFTs.
Ordinals does not need a separate sidechain or token, or any upgrades from the Bitcoin network. It can operate directly on the existing Bitcoin network.
Previously the Segwit and Taproot upgrade increased Bitocin's block size limit from 1MB to a maximum of 4MB. At the same time, it allows the development of layer 2s such as the Lightning Network. At the same time, it has the ability to help the Bitcoin network support and create smart contracts in the future.
*Taproot and SegWit are the names given to Bitcoin protocol updates that improve the privacy and efficiency of the network but also allow NFT-like structures called “inscriptions” to be attached to satoshis.
February 1, 2023. The Bitcoin blockchain made history when this huge block containing up to 4 million transactions was created by a developer to bring an NFT project called “Taproot Wizard” to Bitcoin.
Below is one of the images in the collection included in the Bitcoin blockchain. Each image will be "engraved" into one satoshi.
Theo Ordinals
