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Ordinals: NFTs on Bitcoin

sying.tien

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Non-fungible tokens (NFTs) have gained immense popularity on blockchains like Ethereum, Solana, and BNB Smart Chain. However, the Ordinals project aims to extend the concept of NFTs to the Bitcoin blockchain. While Bitcoin’s decentralized nature and security have historically made it difficult to implement changes to its code, the Ordinals team believes that Bitcoin NFTs have a place in the future of Web3. In this article, we will delve into the concept of Bitcoin Ordinals and explore its potential impact.

Understanding Bitcoin Ordinals


The Ordinals protocol introduces a system for numbering satoshis, the smallest unit of Bitcoin, and tracking them across transactions. By attaching extra data to each satoshi through a process called “inscription,” Ordinals enables the uniqueness of individual satoshis. This means that each satoshi can be treated as a distinct digital asset, similar to an NFT.

Unlike traditional NFTs, which rely on smart contracts and may have the assets they represent hosted elsewhere, Ordinals inscriptions are directly embedded onto individual satoshis within the Bitcoin blockchain. This approach ensures that Ordinals reside fully on the Bitcoin blockchain itself, inheriting its simplicity, immutability, security, and durability.

Ordinal Theory and Inscriptions


Ordinal Theory, in the context of Bitcoin, refers to the proposed methodology for identifying and tracking each satoshi throughout its lifecycle. This theory enables the inscription of digital assets, similar to NFTs, on individual satoshis within the Bitcoin network. The Taproot upgrade, implemented on November 14, 2021, made it possible to create ordinal inscriptions without the need for a separate sidechain or token.

Ordinal inscriptions come with a ranking system based on the rarity of satoshis. These rankings include:

  1. Common: Any satoshi other than the first satoshi of its block (2.1 quadrillion total supply).
  2. Uncommon: The first satoshi of each block (6,929,999 total supply).
  3. Rare: The first satoshi of each difficulty adjustment period (3437 total supply).
  4. Epic: The first satoshi after each halving (32 total supply).
  5. Legendary: The first satoshi of each cycle* (5 total supply).
  6. Mythic: The first satoshi of the genesis block (1 total supply).

Pros and Cons of Ordinals:


Ordinals bring forth new possibilities for the Bitcoin network beyond simple value transfers. However, this protocol has sparked controversy within the Bitcoin community. Some argue that Bitcoin’s simplicity should be preserved, focusing solely on storing and transferring value. Others believe that Bitcoin should evolve to include new features and use cases, with Ordinals being one such innovation.

One concern raised by the introduction of inscribed satoshis is the competition for block space, which can increase network fees. While some view this as a positive incentive for miners to secure the blockchain, others express reservations. As block rewards diminish over time, network fees will become the primary incentive for miners. The Bitcoin community remains divided on the implications of Ordinals, but the project undeniably brings innovation to the Bitcoin space.

Wallets for Bitcoin Ordinals

Previously, there was a lack of designated wallet interfaces for storing and transferring Bitcoin Ordinals Inscriptions. However, the situation has begun to change with the introduction of three wallets that now support Bitcoin Ordinals functionality: Ordinals Wallet, Xverse, and Hiro Wallet.

While the current functionality of these wallets may be limited, their developers have indicated that more features are on the way. These wallets serve as convenient options for users who prefer not to go through the process of setting up a separate Bitcoin wallet. Alternatively, if you seek more customization options, you can set up a Bitcoin wallet like Sparrow, which allows for Ordinal inscriptions.

To make compatible with Ordinals, check this detailed tutorial that provides step-by-step instructions. It’s important to note that this wallet is specifically for receiving Ordinals, and you should avoid sending BTC from this wallet to prevent accidental loss of both BTC and Ordinals.

Sparrow wallet

Exploring Ordinals Marketplaces

With the rise of Bitcoin Ordinals, dedicated marketplaces have emerged to facilitate the buying, trading, and creation of Ordinals. One such marketplace is Gamma, which has introduced a trustless Bitcoin Ordinals marketplace. Gamma aims to provide a remarkable Web3-native experience by combining an open marketplace, creator tools, and integrations with secure third-party wallet extensions. On Gamma, users can not only engage in buying and trading Ordinals but also create their own inscriptions.

Gamma Marketplace

Another noteworthy marketplace is Magic Eden, which has recently launched its Bitcoin NFT Marketplace. This platform offers a space for users to discover, buy, and sell Bitcoin Ordinals and other NFTs. Magic Eden provides a user-friendly interface and a seamless trading experience, attracting enthusiasts looking to engage with the growing Ordinals ecosystem.

Magic Eden Marketplace

Final Thoughts

As the popularity of Bitcoin Ordinals continues to surge, wallets and marketplaces are stepping up to cater to the demand for storing, trading, and creating Ordinals. Wallets like Ordinals Wallet, Xverse, Hiro Wallet, and customizable options like Sparrow offer users convenient solutions for managing their Ordinals. Meanwhile, marketplaces such as Gamma and Magic Eden provide platforms for buying, selling, and exploring the vibrant world of Bitcoin Ordinals and NFTs. With further developments on the horizon, the Bitcoin Ordinals ecosystem is poised to expand, offering exciting opportunities for users in the evolving Web3 landscape.

Professional Trader, Social media scholar and a Crypto expert. If you have any comments, suggestions or questions feel free to contact me at [email protected] and i will get back to you shortly.

Bitcoin

Craig Wright’s “Satoshi Nakamoto” Claim Debunked in UK Court Ruling

June G. Bauer

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The mysterious identity of Satoshi Nakamoto, the inventor of Bitcoin, has been a burning question in the crypto world for over a decade. Several self-proclaimed candidates have stepped forward claiming to be Nakamoto, but their assertions have been widely doubted or disproven. One of the most vocal Nakamoto claimants is Australian computer scientist Craig Wright, but a recent UK court ruling has decisively undermined his case.

In a lawsuit brought by the Crypto Open Patent Alliance (COPA), a group representing crypto companies, the British High Court judge firmly rejected Wright’s claim to be the creator of Bitcoin. The evidence presented in court exposed critical flaws and deception in Wright’s story.

According to the lawyer representing COPA, Jonathan Hough, Wright’s insistence on being Satoshi Nakamoto amounted to “a brazen lie and an elaborate false narrative supported by forgery on an industrial scale.” Hough argued that Wright had provided fabricated documents, backdated file edits, and even indications of using AI language models like ChatGPT years before they were publicly available.

The judge, Justice Mellor, found the evidence overwhelmingly against Wright’s claims. In an unusually swift ruling, he stated unequivocally: “Dr. Wright is not the inventor of Bitcoin” and “Dr. Wright is not the author of the Bitcoin white paper, and he is not the person who adopted the name Satoshi Nakamoto.”

This legal setback is just the latest blow to Wright’s efforts to establish himself as the elusive Bitcoin creator. In a separate case in 2018, Wright was sued for fraud by the estate of the late Dave Kleiman, an American computer scientist considered by some to be a potential Nakamoto candidate. Wright lost that lawsuit as well and was ordered to pay $100 million in damages.

As the crypto community continues to speculate about Satoshi Nakamoto’s true identity, Craig Wright’s claims have been definitively dismissed by the UK court. The mystery endures, leaving open the question – who was the brilliant mind behind the revolutionary blockchain technology and the world’s first cryptocurrency? Only time may unravel the details shrouding Bitcoin’s enigmatic origins.

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Former IcomTech CEO Admits Guilt in Cryptocurrency Ponzi Scheme

sying.tien

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In a recent development, Marco Ochoa, the former CEO of IcomTech, has pleaded guilty to a conspiracy to commit wire fraud charge in the United States District Court for the Southern District of New York. This admission of guilt is tied to the infamous Ponzi scheme orchestrated by IcomTech during Ochoa’s tenure as CEO, which lasted from the company’s inception in 2018 until 2019.

The U.S. Department of Justice, in an official statement, revealed that IcomTech enticed investors with the promise of daily returns on investment products, all under the guise of being a cryptocurrency mining and trading enterprise. To attract unsuspecting customers, the company went to great lengths, including hosting extravagant expos and community events on a global scale. Additionally, IcomTech introduced its own digital token, known as an “Icom.”

However, the shocking truth emerged that the company did not engage in cryptocurrency mining activities as claimed. Worse yet, investors found themselves unable to access the profits they believed were accumulating in their accounts. This deceitful scheme eventually unraveled, leading to the company’s collapse in late 2019.

In the aftermath, legal charges were filed against Marco Ochoa and other high-ranking IcomTech executives in November 2022. As a result of his guilty plea, Ochoa now faces a maximum prison sentence of 20 years.

This latest revelation serves as a stark reminder of the importance of due diligence when investing in the cryptocurrency space. It highlights the need for investors to exercise caution and skepticism, especially when confronted with promises of unrealistically high returns. As the cryptocurrency market continues to evolve, staying informed and making informed decisions remains paramount to protect oneself from fraudulent schemes like the one perpetrated by IcomTech.

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Robert Kiyosaki’s Bold Prediction: Citibank Tokens vs. Bitcoin and the US Dollar

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In a recent tweet that sent shockwaves through the cryptocurrency community, renowned author and financial literacy advocate Robert Kiyosaki ignited a spirited debate about the future of Bitcoin and the US dollar. The tweet read:

This bold statement has raised questions about the impact of traditional financial institutions like Citibank embracing blockchain technology and its potential implications for both Bitcoin and the US dollar.

Citibank, one of the world’s leading financial institutions, made headlines by announcing its entry into the blockchain arena. The bank revealed its plans to leverage blockchain technology to create Citibank tokens, which will be backed by institutional savings. These tokens aim to facilitate instantaneous cross-border transactions, operating 24/7 without the limitations of traditional banking hours or international borders.

Bitcoin, often hailed as “digital gold” and a store of value, has faced both optimism and skepticism since its inception. While some see it as the future of global finance, others view it as a speculative asset prone to volatility. Citibank’s move to introduce its blockchain-based tokens could potentially challenge Bitcoin’s status as the premier digital asset.

Citibank’s tokens, backed by the credibility and stability of a major financial institution, may attract investors seeking a more secure and regulated digital asset. This development could lead to increased competition between Bitcoin and Citibank’s blockchain-based tokens, potentially impacting Bitcoin’s market dominance.

The US dollar, long considered the world’s primary reserve currency, has faced its share of challenges in recent years, including inflation concerns and geopolitical uncertainties. Citibank’s blockchain technology could potentially offer an alternative means for cross-border transactions that is not reliant on the US dollar.

As more institutions adopt blockchain-based solutions like Citibank’s, the traditional financial system’s reliance on the US dollar may gradually diminish. This could have far-reaching consequences for the global financial landscape, including potential shifts in currency preferences and a reduced role for the US dollar in international trade.

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