"Ordinals" and "Inscriptions" in the context of blockchain and cryptocurrency refer to specific concepts related to NFTs (Non-Fungible Tokens) and the way they are stored or recorded on a blockchain.
Ordinals: In the cryptocurrency world, "ordinals" typically refer to the unique identification numbers assigned to individual units of a cryptocurrency. For example, in Bitcoin, each satoshi (the smallest unit of Bitcoin) can be uniquely identified with an ordinal number.
Recently, the concept of ordinals has gained attention in the context of NFTs, where each NFT can be uniquely identified by its ordinal number within a particular blockchain.Imagine you have a long strip of movie tickets, each with a unique number. In the world of Bitcoin, each smallest unit (called a "satoshi") can be thought of as one of these tickets. An "ordinal" is essentially the unique number on each of these tickets (satoshi). Just like each movie ticket is unique due to its number, each satoshi is unique because of its ordinal number.
Say you have 1 Bitcoin, which is equivalent to 100,000,000 satoshis (since 1 Bitcoin = 100 million satoshis).
Each of these satoshis can be uniquely identified. For example, satoshi number 1, satoshi number 2, and so on, up to satoshi number 100,000,000.
These unique numbers are the "ordinals".Inscriptions: Inscriptions are a way to permanently record data on a blockchain.
In the NFT space, this often refers to the process of embedding metadata or other information directly into a blockchain transaction. This data can include images, text, or other forms of media, and it becomes a permanent part of the blockchain record. Inscriptions are used to establish the uniqueness and ownership of an NFT and to provide details about it.Inscriptions are like writing a personal message on the back of each of your movie tickets. In blockchain terms, it means embedding data (like an image, a piece of text, or a small file) directly onto a satoshi. This process of inscribing turns a regular satoshi into something unique, almost like a tiny piece of art or a collectible.
Imagine you decide to draw a small smiley face on the back of your 50th movie ticket.
In the Bitcoin world, this is like embedding a small image or text onto your 50th satoshi.
This satoshi now carries unique data (your smiley face), differentiating it from all other satoshis. It's no longer just a satoshi; it's a satoshi with a unique "inscription".
The Usages
- Uniqueness and Collectibility: Just like autographed memorabilia or limited-edition stamps, inscribed satoshis can become collectibles due to their unique nature.
- Digital Art and NFTs: This concept is similar to NFTs (Non-Fungible Tokens) in the Solana blockchain and Ethereum blockchain, where digital art or assets are tied to unique tokens. However, in the Bitcoin blockchain, instead of using a separate token standard like Ethereum's ERC-721 (used for NFTs), the data is inscribed directly onto a satoshi.
Summary
Ordinals give each satoshi a unique identity (like a serial number).
Inscriptions allow for personalizing or marking these satoshis with unique data (like a signature or a doodle).
This makes every inscribed satoshi both unique and potentially valuable, much like a rare coin or a signed first-edition book.