|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Bitcoin Ordinals: The Innovation That Expands the Horizons of the Blockchain
Oct 23, 2024 at 08:38 pm
From digital art to real-estate assets, NFTs have become a significant attraction for investors who look for new ways to diversify their portfolios.
The world of digital assets is continuously expanding, and Non-fungible tokens (NFTs) have become a significant attraction for investors who aim to diversify their portfolios. While NFTs are predominantly associated with the Ethereum blockchain, a new development is unfolding within the Bitcoin ecosystem.
The first programmable blockchain in the world enabled the creation of Non-fungible tokens, expanding the horizons of the network. However, the leader of the digital market couldn’t miss the opportunity to explore a new territory that could attract a broader audience.
Known for being a store of value, Bitcoin hopped on the trend as well, and, since January 20, 2023, NFTs have been entering the BTC blockchain. Being a less programmable chain, this is a huge step for Bitcoin, and it serves the needs of businesses and individuals to dip their toe into real estate and showcase their talent tokenizing their artwork or they can be used as a store of value for portfolio diversification. This is everything you should know about the Bitcoin innovation:
What are Bitcoin Ordinals?
NFTs are widely popular for representing a considerable part of the Ethereum blockchain. However, now that Bitcoin is embracing this opportunity as well, starting from January 20, 2023, the coin is entering a new era of being more programmable and, hence, expanding its use cases, going beyond being just a store of value.
On the Bitcoin blockchain, NFTs are referred to as ordinals or Satoshi, which are the smallest part of a BTC unit. They are inscribed with unique numeric codes and enable the addition of extra pieces of information like text, images, or other forms of assets. So, simply put, ordinals are what allow the creation of NFTs, and, unlike other non-fungible tokens, BTC tokens can be fungible as well, and they can be used to pay for the network transaction fees and be sent as a payment to another party, so they can be used as a normal Bitcoin.
For instance, the latest innovation in the BTC realm are runes, fungible tokens that expand the horizons of traditional NFTs. You can discover the potential of runes on Magic Eden, which is the perfect marketplace for the transformative assets. You can buy NFT (or sell them) on dedicated markets.
NFTs have many use cases that reshape the BTC network. For example, NFTs can be used for data storage, to create digital art, to create video games, or to digitalize real estate.
How do they work?
Each Satoshi receives an ordinal number based on the order when they’re mined, and this system allows each ordinal to be unique. After receiving this code, users and developers add data to the parcel of BTC, such as text, images, and other assets, becoming an NFT. The technical process of inscription includes the following:
The user selects a Satoshi and adds data to it, creating an NFT.
The NFT is then included in a Bitcoin block and assigned an ordinal number.
The ordinal number and the data are permanently linked on the Bitcoin blockchain.
Afterward, the NFT can be traded, sold, or used for any other purpose within the Bitcoin ecosystem.
Use cases of Bitcoin Ordinals
The implementation of the ordinals gives Bitcoin a completely new purpose. The popular coin is well-known for being a store of value, but now that its blockchain enables the creation of NFTs, Bitcoin expands its horizons and serves the needs of developers and creators to use Satoshi in transformative ways. For instance, these are the most popular use cases for Bitcoin NFTs:
Data storage
Many industries can benefit from Bitcoin immutability and high security levels to protect sensitive information like scientific information, election results, personal info of clients and other important documentation. Once the data is stored on the blockchain, it is safely recorded and no one can alter it, but since it’s on a public ledger, it is possible to verify their accuracy.
Digital art
Artists have the opportunity to reach a broader audience on the Bitcoin blockchain, by tokenizing their artwork and selling it to collectors from all over the world. Also, unlike other NFTs, BTC ordinal data is stored on-chain, providing immutability of the records. The originality of the art pieces is proved by the unique numeric code, and they can be traded on the market as a regular NFT.
Collectibles
Many crypto-enthusiasts collect meme-inspired coins and other interesting assets that are unique, uncommon, and rare. NFT collections are common for people who are passionate about the digital market and look for exotic satoshis to have a unique portfolio.
Property rights
Bitcoin NFTs minimize common disputes of the parties involved regarding the ownership and copyrighting, as it’s easy to track the history of the ownership on the public ledger. In this sense, it’s also a common feature used in real estate, to prove the partial or full possession of real-world properties.
Gaming
The ordinals enable
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Bitget Showcases Rapid Growth and Vision for Expanding Crypto Adoption at Blockchain Life 2023
- Oct 24, 2024 at 12:20 am
- As a sponsor at the Blockchain Life conference in Dubai, Bitget, one of the world's leading cryptocurrency exchanges, showcased its rapid growth and vision for expanding crypto adoption.
-
- Cutoshi Projected To Outrank Solana-Based Coins In Q4
- Oct 24, 2024 at 12:20 am
- Cutoshi is an innovative Ethereum-based coin that is set to dominate the market. Inspired by the traditional Chinese Lucky Cat, believed to bring luck and fortune to people, and Satoshi Nakamoto's vision for blockchain technology. Cutoshi is developing an innovative DeFi hub, fun meme coin, and robust ecosystem.
-
- Bitcoin Posed Significant Risks to Society, Even in a Scenario Where Prices Continue to Rise: ECB Economists
- Oct 24, 2024 at 12:20 am
- Two economists from the European Central Bank (ECB), Ulrich Bindseil and Jürgen Schaaf, have issued a critical analysis of Bitcoin, warning that even in a scenario where Bitcoin prices continue to rise, the cryptocurrency poses significant risks to society.