Non-fungible tokens (NFTs) have been around to stay around, and digital items are created through a special computer program built on the Ethereum blockchain called a smart contract. However, the Bitcoin Ordinals or Ordinal NFTs have come to switch things up and show us a new style of NFTs on Bitcoin. Since then, the Bitcoin Ordinals have experienced a significant surge, with inscriptions surpassing 29 million as of the current time.

Let’s take a closer look at what Ordinal NFTs are and the new dimension they bring to the NFT family.

What are Ordinal NFTs?

Here I was, thinking you would never ask. As is the general knowledge of NFTs, they are Ethereum-based tokens, but now we have the Ordinal NFTs, otherwise known as Bitcoin Ordinals, which are, by name and nature, of the Bitcoin tribe.

Inscriptions were introduced on the Bitcoin mainnet in January 2023; this paved the way for the creation of Ordinal NFTs, which are essentially non-fungible tokens that operate on Bitcoin. Ordinal NFTs are built on the Ordinals theory through the Ordinals protocol developed by Casey Rodramor. The main idea behind the Ordinal theory is to give each satoshi, the smallest unit of Bitcoin (named after the founder/founders), distinct identities.

These identities allow them to be tracked, transferred and attribute unique features to every inscribed satoshi, which makes them different from one another, thereby transforming them into non-fungible tokens.

How Ordinal NFTs Work

The process of creating Ordinal NFTs starts by sending an ordinal satoshi to a wallet that's compatible with Taproot. Taproot is a significant Bitcoin upgrade designed to streamline the verification of transactions within the Bitcoin network by combining multiple signatures and transactions. During this transaction, data and metadata are included, effectively inscribing them. The inscription becomes permanently attached to the first satoshi of the transaction’s initial output once mined.

The original process requires technical tasks like running a Bitcoin node, syncing the whole Bitcoin blockchain, and using command-line interfaces. These steps can be challenging for non-technical users. Fortunately, the release of no-code ordinal mining applications now allows the less technically inclined users to upload content for inscriptions and generate Ordinal NFTs.

Basically, the Ordinal protocol works by giving a sequential number to each satoshi. Once the numbers are given, the satoshis can be inscribed with various data types like images, text, or videos through a Bitcoin transaction. Once mined or confirmed in the blockchain, the data becomes a permanent part of the Bitcoin blockchain and can be viewed through online Ordinal viewers.

What is The Difference Between Ordinal NFTs and Other NFTs?

The major difference between Ordinal NFTs and other NFTs primarily has to do with the way data is stored. The majority of NFTs are generated using the Ethereum blockchain, and that works through the ERC-721 Non-Fungible Token Standard. When an ERC-721 NFT is minted, a metadata file that provides information about it is included.

In the case of common NFTs, such as digital art, the original image file, like a JPG or other formats of the art, is typically stored off the Ethereum blockchain, with the metadata having a link to that file. This means that the original file or artwork can be changed since it is not rooted in the blockchain.

Bitcoin Ordinal NFTs do not follow this traditional process. They do not have a file containing the metadata that describes the NFT; instead, the entire data file is stored in the recorded signature field of the Bitcoin transaction. This ultimately means that Ordinal NFTs fully exist and live on the blockchain, unlike the others.

Do Ordinal NFTs Have Pros and Cons?

As a matter of fact, yes, they do.

A major advantage of Ordinal NFTs is that they can store image data within the prunable transaction witness data, significantly reducing the cost of minting NFTs compared to other NFTs. This approach makes the minting process more affordable and streamlines the whole process, benefiting creators and collectors.

A part of the advantage might also come to bite Ordinal NFTs in the leg as NFT data can be removed or pruned by individual node operators, which can compromise the immutability and limit the decentralization benefits of the NFTs.

Ordinal NFTs can also increase adoption and grow the already vast Bitcoin community.

Some Popular Ordinal NFT Projects

These Bitcoin NFTs are completely different from their Ethereum predecessors, but some are based on their designs, and you might have come across some of them in your walk through the crypto community.

Ordinal Punks

According to the Ordinal Punks X (formerly known as Twitter) handle and official website, Ordinal Punks are a 100-supply PFP collection fully on-chain on the Bitcoin blockchain minted within the first 650 inscriptions. Ordinal Punks use an open-source algorithm to generate the pfp, which is 192x192 pixels.

TwelveFold

According to the TwelveFold official website, it is a collection created by YugaLabs, the creators of the Bored Ape Yacht Club. It has a collection of 300 unique generative art pieces inscribed onto satoshis on the Bitcoin blockchain.

Conclusion

The cryptocurrency space continues to expand its tentacles across our world, and the benefits are out there for all to partake in. Bitcoin Ordinal NFTs have grown and come a long way since its creation. It has reached highs and broken into markets, and we are left to wonder, “What more does the blockchain have for us”?