Company
Date Published
Author
Chainlink
Word count
1446
Language
English
Hacker News points
None

Summary

Ordinal NFTs, launched on the Bitcoin mainnet by developer Casey Rodarmor in January 2023, represent a novel approach to creating non-fungible tokens directly on the Bitcoin blockchain, differing from traditional Bitcoin NFTs that rely on layer-2 networks. These NFTs utilize ordinal theory to assign unique numbers to individual satoshis, the smallest denomination of Bitcoin, allowing for the attachment of arbitrary data such as images and videos without altering the Bitcoin protocol. This innovation was enabled by the Segregated Witness (SegWit) and Taproot updates, which expanded the capacity for storing arbitrary data on-chain. Unlike Ethereum NFTs, Bitcoin ordinals can be either fungible or non-fungible, depending on user recognition of the data attached to the satoshi, sparking debate over their impact on Bitcoin's core financial transaction function. While the Bitcoin community deliberates on the role of ordinal NFTs, any change to their functionality would require a protocol update, highlighting the community's influence in determining their future.