Unveiling Ordinal NFTs: A Revolution in Bitcoin Blockchain Art

Bitcoin NFTs Explained: Unlocking the World of Ordinal Inscriptions

3Verse Global
8 min readFeb 7, 2024


In the realm of Bitcoin, a groundbreaking concept known as ordinals has paved the way for creating Bitcoin NFTs by associating various data forms, such as images and videos, with individual satoshis on the foundational Bitcoin blockchain.

Introduced to the Bitcoin mainnet by developer Casey Rodarmor on January 20, 2023, ordinal NFTs represent a distinct approach to NFT creation on Bitcoin. Unlike their predecessors, ordinal NFTs do not exist on a separate layer but instead utilize an arbitrary yet logical ordering system called ordinal theory, assigning a unique number to each Bitcoin satoshi. This sets ordinal NFTs apart as entirely Bitcoin-native, functioning seamlessly without altering the Bitcoin protocol, avoiding additional layers, and ensuring backward compatibility with the network.

Although the concept of non-fungible tokens (NFTs) on Bitcoin is not novel, ordinal NFTs bring a distinct architectural approach compared to other Bitcoin NFTs, distinguishing themselves from existing implementations like Counterparty and Stacks, which operate as layer-2 networks on top of Bitcoin.

The Evolution of Ordinal NFTs

Since their inception, over 200K ordinal NFTs have been minted, gaining traction among a growing community of users, developers, and enthusiasts intrigued by the potential of native Bitcoin NFTs. But what sets ordinal NFTs apart, and how do they operate differently?

Ordinal NFTs have experienced consistent expansion since their initial introduction, incorporating diverse media formats into individual satoshis, showcasing their dynamic growth over time.

Understanding Ordinal Inscriptions

Ordinals act as a mechanism for crafting Bitcoin NFTs by linking data — ranging from images to videos — to individual satoshis on the core Bitcoin blockchain. Unlike their predecessors, ordinal NFTs do not inhabit a separate layer; instead, they leverage ordinal theory to provide each Bitcoin satoshi with a unique number. This Bitcoin-native approach operates without altering the Bitcoin protocol, eliminating the need for additional layers and ensuring compatibility with the network.

A satoshi represents 1/100,000,000 of a single Bitcoin, constituting the smallest unit of Bitcoin.

The Historical Context of Ordinal NFTs

While the conceptualization of ordinal theory unlocked the potential of ordinal NFTs, their current existence was made possible by the Segregated Witness (SegWit) and Taproot updates to the Bitcoin Protocol in 2017 and 2021, respectively.

It’s crucial to highlight that these updates were not intentionally designed to facilitate the emergence of new NFT types. However, their implementation inadvertently expanded the capacity for storing arbitrary data on-chain within a block. This inadvertently created space for incorporating images, videos, and even games, leading to the unintentional feasibility of Ordinal NFTs following these updates.

Segregated Witness (SegWit)

This 2017 update introduced a soft fork of the Bitcoin blockchain, segregating a Bitcoin transaction into two sections. By adding a “witness data” section capable of supporting arbitrary data, SegWit overcame blocksize limit restrictions and enabled optional data transmission. While not specifically designed for ordinal NFTs, this update inadvertently created the conditions for their development.

Segregated Witness (SegWit) innovatively segregates transaction information from witness (signature) data, creating distinct sections.

Witness data was initially designed to:

1. Overcome the strict constraints of the blocksize limit

2. Enable the transmission of optional, arbitrary data

3. Safeguard against unintentional transaction malleability

In a technical context, the introduction of Segregated Witness (SegWit) brought a significant shift, eliminating the necessity for transactions to carry witness data, commonly the sender’s digital signature. Instead, a dedicated space for witness data was ingeniously created as a distinct structure at the block’s end. This space not only facilitated arbitrary data transmission but also featured a discounted “block weight.” This strategic design ensured that substantial data could be accommodated within Bitcoin’s block size limit, skillfully avoiding the need for a hard fork. This pivotal development laid the groundwork for ordinal NFTs, pushing the boundaries of how much arbitrary data one could seamlessly include in a transaction.


Implemented in November 2021, Taproot aimed to enhance Bitcoin’s privacy, scalability, and security. By facilitating the storage of arbitrary witness data and relaxing limitations on data within a Bitcoin transaction, Taproot played a crucial role in enabling ordinal NFTs. The upgrade improved the structure and storage of arbitrary witness data, forming the basis for the “ord” standard.

These advancements played a pivotal role in empowering ordinal NFTs, housing NFT data within Taproot script-path spend scripts. This enhancement simplified the organization and storage of diverse witness data, laying the groundwork for the “ord” standard. The eased data criteria allowed a single transaction to potentially occupy an entire block, pushing transaction and witness data up to the block size limit of 4MB. This significant expansion broadens the spectrum of media types that can find a place on the blockchain.

How Bitcoin NFTs Operate

To comprehend the functionality of ordinal NFTs, it’s essential to distinguish between “ordinals” and “inscriptions,” terms frequently used to describe this new type of Bitcoin NFT.

  • Ordinals: These establish a system for ordering satoshis, creating the “non-fungible property essential for NFTs.
  • Inscriptions: This refers to the content of the ordinal NFT itself — whether it’s an image, text, or video.

Ordinal NFTs draw parallels with non-Bitcoin NFTs, featuring a unique tokenID and metadata components.


TokenID in Non-Bitcoin NFTs: In non-Bitcoin NFTs, a tokenID provides a unique identifier, differentiating tokens from each other. Ordinal theory serves as the Bitcoin counterpart to TokenID, numbering each individual satoshi based on their order of mining.

In the realm of NFTs, it’s possible for tokens to share the same tokenID if they originate from distinct smart contracts. In such instances, the distinguishing factor between NFTs lies in the specific smart contract that creates each token.

Ordinal Theory Unveiled: Transforming Bitcoin Fungibility

Bitcoin, renowned for its fungibility, poses a challenge when it comes to distinguishing one bitcoin from another. Enter ordinal theory, a groundbreaking innovation that addresses this inherent fungibility, particularly in the context of ordinal NFTs.

The crux of ordinal NFTs lies in their ability to establish a systematic numbering for each individual satoshi on the Bitcoin blockchain, essentially assigning a unique ID to every satoshi. This fundamental shift introduces a distinctive identity for each satoshi, creating a novel dimension within the Bitcoin ecosystem. In its simplest form, each ordinal represents a satoshi adorned with a unique number, bringing forth a structured approach to their identification. The mechanics behind this system draw inspiration from ordinal theory, where individual satoshis receive numerical designations based on the order of their mining.

The journey begins with the inaugural ordinal, marking the first satoshi ever minted in 2008. As satoshis change hands through transactions, the order is meticulously preserved using a first-in, first-out system. This chronological preservation ensures that each satoshi retains its original order, contributing to the overarching narrative of ordinal theory.

In essence, ordinal theory acts as the TokenID for Bitcoin, infusing a sense of individuality into each satoshi and reshaping the landscape of Bitcoin fungibility. This innovative approach opens new possibilities within the realm of ordinal NFTs, offering a nuanced perspective on the otherwise interchangeable nature of bitcoins on the blockchain.

Ordinals are numbered in the order that they are mined. Ordering is preserved across transactions based on a first-in, first-out process.

Ordinal theory doesn’t infringe upon the fundamental fungibility of Bitcoin. The official Bitcoin protocol doesn’t formally acknowledge this unique satoshi ordering. Instead, a community of ordinal enthusiasts has chosen to collectively attribute significance to this numbering system and develop tools that respect and uphold it.


Metadata in Non-Bitcoin NFTs: In non-Bitcoin blockchains, metadata represents optional data attached to a non-fungible token, showcasing a wide range of assets such as art, in-game items, and financial assets. In ordinal NFTs, metadata is inscribed within the witness data of a transaction.

Metadata in Ordinal NFTs: Where Inscriptions Find Their Place

Unlike their non-Bitcoin counterparts, ordinal NFTs do not have a dedicated space for metadata. Instead, the metadata for ordinal NFTs resides within the witness data of a transaction.

An example of a Bitcoin inscription — a CryptoPunk image repurposed by its owner.

This is the essence of the term “inscription” — the data linked to a specific satoshi is “inscribed” within that specific section of a Bitcoin transaction. To inscribe a particular satoshi with data and create an ordinal NFT, users need to initiate a transaction involving an individual satoshi to a Taproot-compatible wallet. Here, they can seamlessly attach the desired metadata as part of the transaction. It’s crucial to pay attention to the transaction’s ordering to ensure the chosen satoshi is not utilized as a network fee. Utilizing tools that automate this process can mitigate these risks, simplifying the entire procedure, especially for non-technical users.

The Fluid Nature of Bitcoin Ordinals

Bitcoin ordinals differ from standard NFTs due to their fluid nature. The Bitcoin protocol does not officially recognize ordinal theory, allowing ordinals to be either fungible or non-fungible, depending on the user’s preference for preserving individual satoshis.

For instance, if a Bitcoin user doesn’t acknowledge or care about an ordinal or its attached data, the ordinal can function like any other Bitcoin — fungible and transferable. This flexibility sets ordinals apart from Ethereum NFTs, as Ethereum treats fungible tokens and NFTs differently, making them distinct and preventing confusion.

The Ongoing Debate Surrounding Ordinal NFTs

The emergence of ordinal NFTs has sparked debates within the Bitcoin community regarding the fundamental role and ethos of Bitcoin.

Some argue that Bitcoin should primarily serve secure financial transactions, criticizing the rise of ordinal inscriptions for potentially congesting Bitcoin’s block space and increasing transaction fees. On the flip side, enthusiasts see the cultural and memetic value ordinal NFTs bring to the Bitcoin blockchain, expanding its immutable, decentralized database beyond financial transactions.

This underscores the continuous dialogue surrounding the role of ordinals in shaping the future of Bitcoin.

Furthermore, beyond crafting Ordinal NFTs, the protocol holds the potential to extend its utility. For instance, it could be leveraged to associate ordinal satoshis with individual security tokens or stablecoins. Additionally, it opens avenues for implementing Bitcoin smart contracts, presenting an opportunity to introduce the cryptocurrency to a wider audience.