Why I'm Paying Attention To Bitcoin Ordinals

Simplifying emerging technology trends with Shira Lazar. Learn what matters in web3 and AI in under 3 minutes per week.

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Shira Lazar
January 21, 2024

Hey everyone, I am coming to you live from the Sundance Film Festival, where I am filming content for Film.io. As you all know, I have always been passionate about the intersection of tech and entertainment, so being able to collaborate with them during this and their public launch is pretty exciting!

Film.io is decentralizing Hollywood's decision-making process, using blockchain to empower creators, fans, and NFT artists. It's the first to launch a filmmaking DAO.

Today, I want to dive into Bitcoin Ordinals since it’s coming up in more and more conversations I’m having with big brands and Web3 communities.

Ordinals, introduced by developer Casey Rodarmor on January 20, 2023, are a method for creating Bitcoin NFTs by embedding data like images or videos into individual satoshis on the Bitcoin blockchain, representing a new approach to NFT creation on Bitcoin.

Even amidst a price dip in August 2023, Ordinals continued to energize Bitcoin's network. An impressive 84.9% of Bitcoin's 530,788 daily transactions were Ordinals-related, a clear sign of their growing influence and resilience in the face of skepticism.

From its inception in 2008 by the mysterious Satoshi Nakamoto, Bitcoin has been a symbol of decentralization and resilience.

Understanding Bitcoin Ordinals

Born from the Taproot upgrade of November 2021, Bitcoin Ordinals differ from traditional NFTs. Unlike the popular Ethereum NFTs, which often use off-chain storage like IPFS for data, allowing for updates like improved images, Bitcoin Ordinals store all data directly on the blockchain, making them fully self-contained. They are entirely immutable, meaning they cannot be changed in any way,

This approach removes the need for off-chain data, seen as a limitation in Ethereum NFTs, and does not include creator royalties. 

Why the Buzz?

1. Innovative Bitcoin Utilization: Ordinals showcase a new dimension of Bitcoin, expanding its utility beyond mere currency.

2. NFT Boom: They tap into the exploding NFT market, merging art and collectibles with Bitcoin's security.

3. Investor Confidence: Boosted by the approval of the Bitcoin ETF, Ordinals have garnered significant interest as a novel asset class.

 4. Cultural Impact: Ordinals bring creativity and a new user base to Bitcoin, transcending its traditional financial and technological boundaries.

The burgeoning ecosystem around Bitcoin Ordinals, with platforms like Gamma.io and Oridalsbot, hints at a future where Bitcoin’s use is not just limited to financial transactions but extends into the domains of art, gaming, and beyond.

Check out the recording of my Twitter space this week to learn more from Bitcoin ordinal enthusiasts, entrepreneurs, and founders of projects like Onchain Monkey and Forgotten Runes.

“Bitcoin ordinals are more than just art or inscriptions, I see them as true digital artifacts.”

Amanda Terry, Co-Founder/COO of Meta Good- creators of OnChainMonkey

Use Cases:

Top Bitcoin Ordinals and NFT Examples

1. Ordinal Punks: Inspired by CryptoPunks, this collection comprises 100 Bitcoin NFTs minted within the first 650 inscriptions on the Bitcoin chain. The highest-numbered inscription in this set is #642.

2. Taproot Wizards: Created by Web3 developer Udi Wertheimer, this collection starts at Inscription #652. It holds the record for the largest block and transaction in Bitcoin history, occupying 4MB.

3. OnChainMonkey: An Ethereum-based project, it introduced 10,000 Ordinals in a single Inscription (#20,219), demonstrating a scalable method for minting NFTs on Bitcoin without overloading the network.

4. TwelveFold by Yuga Labs: Launched in February 2023, this collection features 288 of its 300 pieces auctioned, with the rest reserved for contributors and philanthropy. It employs 3D modeling and algorithmic construction.

5. Forgotten Runes: This collection brings a unique blend of artistic and storytelling elements, featuring mystical and magical themes that captivate the imagination of the NFT community.

I hope you enjoyed this short breakdown and intro into the world of Bitcoin ordinals. There are still a lot of unknowns and potential use cases to look into as the information around it and accessibility grows. What are your thoughts on Bitcoin ordinals? Reply to this email or comment below!

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