Ordinals

The Ordinals protocol aims to enhance Bitcoin's blockchain by allowing the creation of digital artifacts, effectively turning individual satoshis into unique, non-fungible tokens (NFTs). This extends the use of Bitcoin beyond a digital currency, providing a platform for inscribing digital assets such as images, texts, and applications directly onto the blockchain, promoting digital ownership and creativity.

Ordinals leverages the Bitcoin blockchain by numbering individual satoshis and attaching arbitrary data to them, transforming them into NFTs without the need for sidechains or additional tokens. This process, enabled by Bitcoin's Taproot upgrade, uses the blockchain’s security and immutability to permanently embed digital assets, known as inscriptions, into the Bitcoin network.

Ordinals provide several benefits over traditional NFT platforms, most notably the use of Bitcoin's robust security and decentralized nature. By inscribing data directly onto satoshis, users can avoid reliance on separate blockchains or layers. This approach also eliminates the need for additional cryptocurrencies, streamlining the NFT creation process while enhancing transparency and permanence.

Ordinals distinguish itself from earlier Bitcoin NFT initiatives like Counterparty and Stacks by directly inscribing assets onto satoshis using Bitcoin's main layer. Previous projects often relied on sidechains or additional tokens. The use of the Bitcoin Taproot upgrade further ensures that arbitrary data can be efficiently stored as part of the main blockchain, retaining all its security benefits.

Ordinals face issues such as increased transaction fees and potential malware risks. By inscribing data directly onto the blockchain, each transaction may become larger, thus driving up fees. Additionally, embedding arbitrary data could introduce security vulnerabilities, posing risks of encoding harmful software directly onto Bitcoin’s immutable ledger.

MEMENTO MORI is a memecoin utilizing the Ordinals protocol on Bitcoin's main layer, created using the Runes protocol by Casey, who also developed Ordinals. It reflects a community-driven initiative launched on Halloween, with half of its supply airdropped to specific subscribers. The token's creation sparked high transaction activity on the Bitcoin network, showcasing Ordinals’ capability in facilitating new digital assets.