Recently, one coin has been particularly noteworthy in terms of performance, and that coin is the Ordinals BRC-20 token, $ORDI. It has experienced a remarkable surge of 1200% since the beginning of November. However, questions arise about what precisely Ordinals are and how they are impacting the Bitcoin network, leading to a significant rise in fees.
Each satoshi, the smallest unit of Bitcoin, is assigned a unique serial number known as an "ordinal."
Ordinals serve as identifiers, indicating the order in which satoshis were mined on the Bitcoin blockchain.
The Ordinals protocol introduces a concept called "inscriptions."
Inscriptions involve embedding additional data directly into individual satoshis, effectively creating a narrative or digital signature.
Mining Ordinals
Bitcoin Ordinals are mined through a process similar to traditional Bitcoin transactions.
Notably, mining involves Proof of Work (PoW), distinguishing it from other blockchain networks commonly associated with NFTs that use Proof of Stake (PoS).
Trading Bitcoin Ordinals
Bitcoin Ordinals can be bought, sold, and traded like traditional NFTs.
Dedicated marketplaces, such as Ordinals Wallet and OKX, facilitate these transactions.
Bitcoin Ordinals vs. NFTs
The fundamental difference lies in how data related to the token is stored.
While traditional NFTs often reference off-chain data, Bitcoin Ordinals store content directly on the Bitcoin blockchain through inscriptions.
One more question has come to mind now. Is this rally driven by the increasing fees or the renewed interest resulting from the listing of $ordi on Binance?
I am sure now that this along the ETF narrative contributed the most about the continuation of the rally. Nevertheless $ordi looks unstoppable and is making one All time high after the other.
https://ordinals.com/
