API/RSS

Social

Ten thousand words Xiongwen interpretation Bitcoin Ordinals

AIONews

23-03-20 11:32

Read this article in 79 Minutes

AI summary

View the summary

Bitcoin Ordinals

Source: @TraFinity Labs @AIO Labs

Original article by @masa@0xSilent@luna.f

TraFinity Labs & AIO Labs joint release, AIONews network debut.

preamble

Bitcoin is the first successful practical project of blockchain technology, which makes the concept of decentralization deeply rooted in people's hearts. In the more than 10 years since the birth of bitcoin, other types of blockchain projects have emerged one after another, with more advanced technology, higher TPS, and more complex and diverse ecology. In contrast, in terms of functionality, the main function of Bitcoin's blockchain network is the realization of value transfer, which is to transfer a certain number of BTCS from one address to another address.

Recently, the Ordinals protocol was released, making it possible to create NFT on the Bitcoin chain. So how did Ordinals work and why was it able to create NFT on the "old" bitcoin chain? Does the NFT participate in the value of the Bitcoin chain and how? We're going to take a closer look today.

(Figure: As of March 15, the BTC Inscriptions had generated 463K.)

Section1 Historical origin

1.1 Development history of BTC network

Bitcoin is the world's first widely accepted and used cryptocurrency. After more than 10 years of development and evolution, it has become the leading global open decentralized digital currency. Bitcoin's success is largely due to its unique blockchain technology, a major innovation based on a decentralized network that makes it a digital currency without the control of a central administrator or agency.

1. origin

The origin of Bitcoin can be traced back to 2008. It was proposed and implemented by a mysterious person or group of people named "Satoshi Nakamoto". In A white paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," Mr. Nakamoto laid out the basic ideas and technical proposals for Bitcoin. After this, Satoshi began to implement the Bitcoin project and launched the first Bitcoin blockchain on January 3, 2009.

2. Start-up stage

In its early days, Bitcoin attracted only a small number of people, but it soon began to attract a growing number of users and investors. In May 2010, Bitcoin was used to buy pizza in a single transaction, marking the beginning of Bitcoin becoming the world's first commercial digital currency. In 2011, the price of bitcoin began to rise, from a few cents at the time to a peak of $30 per unit, followed by a brief boom. Since then, however, the price has quickly fallen below $2 a unit, dealing a staggering blow to liquidity, inventory and acceptance.

3. Mature stage

In 2012, due to the uniqueness of Bitcoin and its possible significance to the economy, including some prominent financial experts began to pay attention to Bitcoin. In June of that year, the first Bitcoin mining reward halving event took place, which halved Bitcoin's mining reward from 50 bitcoins to 25 bitcoins and paved the way for similar events to be implemented every four years. This has attracted more and more people to mining and trading bitcoin. In 2013, when bitcoin broke the $100 price mark, the activity of the bitcoin community increased rapidly, and more bitcoin trading platforms and blockchain innovative enterprises began to appear at home and abroad.

4. Global expansion

Bitcoin's worldwide acceptance and popularity has also increased over time. In 2014, the price of bitcoin fell from $1,200 to $200 in a short period of time, and has fluctuated in price in the following years. At the same time, Bitcoin's technology ecosystem has grown and spawned many new applications and services. In 2017, the price of bitcoin began to rise rapidly, from a few thousand dollars to more than $20,000, setting a new record and attracting widespread attention around the world. In 2018, bitcoin price became the focus again, falling more than 80%, but the bitcoin market still maintains strong vitality, it has become a mature and widely recognized asset class rather than a revolutionary digital currency, while blockchain technology is increasingly widely used in finance, logistics, health care and other fields. In the following decade, BTC led the cryptocurrency to set off a wave of global financial wealth.

As of 2022, global cryptocurrency ownership averaged 4.2%, with more than 320 million crypto users worldwide. Retail investors and institutions are piling in, with research from Triple A showing that 81% of U.S. adults will have heard of cryptocurrencies in 2022. Bitcoin is a popular choice among cryptocurrency owners in the United States, with more than 73 percent of cryptocurrency owner respondents owning bitcoin.

5. Today and the future

Millions of people around the world already use Bitcoin for transactions, and the ways it can be used are expanding. Bitcoin, Ethereum, Litecoin and other blockchain assets have been widely recognized, and a large number of traditional investment companies and funds have begun to invest in this field. At present, a lot of financial services for bitcoin and other cryptocurrencies have emerged worldwide, such as bitcoin trading platforms, wallet providers, payment processors and so on. In the future, bitcoin and blockchain technology have huge development prospects and application space, and there are more and more intersections with other fields of technology and business models. However, bitcoin and blockchain technology also face many challenges, such as scalability, sustainability, security, regulatory issues, and need to continue technological innovation and improvement.

1.2 Taproot Update

What is Taproot? Wikipedia provides the following definition:

Taproot: "The taproot is a large, central, dominant root from which other roots sprout laterally. Usually, the taproot is somewhat straight, then tapered in shape and grows directly downward. In plants such as carrots, the taproot is a highly developed storage organ that has been cultivated as a vegetable."

Gregory Maxwell, who developed the Taproot scheme, put it this way:

"The term originates from the visualization of a tree with a center as thick as the taproroot of a dandelion (this technique is very useful because one high-probability path is assumed and the rest of the paths are blurred). I think this is a good approach because it validates the expense of the script path by leveraging the commitment hidden in the root.

... Alas, calling a hash tree with sorted inner nodes a "Myrtle tree" did not catch on. (Myrtle tree is a family of trees that includes Melaleuca and tea-tree, which sounds like 'merkle'. :p)"

(Figure: Taproot upgrade greatly improves the privacy, scalability, security and other features of the BTC network)

Specifically, the 2021 BTC has a Taproot update that adds the following:

1. Transaction verification optimization: Taproot combines multiple Bitcoin transaction verification conditions into a single condition, thus greatly simplifying the verification process, reducing the transmission of on-chain information during the transaction process, improving transaction efficiency and transaction confirmation speed, and increasing the scalability of the Bitcoin network. It's also good for privacy.

2. Schnorr signature: Taproot uses Schnorr signature to reduce transaction signature information and improve transaction privacy. Most importantly, Schnorr signatures are better accepted for batch validation and can even be combined with multiple signatures. In Taproot, this is used to hide redundant, slightly public information in the Bitcoin network to protect the privacy of transactions.

3. ASCII scripting support: In the Taproot upgrade, new computer languages can now be written using Bitcoin's scripting language. This allows Bitcoin users to create more complex applications and more flexibility to enhance the flexibility and variety of Bitcoin scripts. This would facilitate node voting, flash spending or complex Bitcoin-based transactions, for example.

4. Redundant Conditions: Taproot provides full support for the Bitcoin network's redundant conditions, a technology that can transform multiple conditions of a Bitcoin transaction into a very efficient transaction method that can easily handle many different transactions and application scenarios.

5. MAST support: MAST is a highly flexible form of contract that supports custom combinations of standard tree-based contracts. Taproot supports MAST in P2SH (Pay-to-Script-Hash), increasing the flexibility and variety of Bitcoin.

6. Enhanced cryptographic protection: While Bitcoin has proven to be a highly secure digital currency, the Taproot upgrade will bring an additional measure of protection, This includes the participation of BIP-Schnorr, the Tapscript technology built through the loop protection of the program, and the integration of Schnorr signatures into the Bitcoin scripting language to ensure that the facilities and processes of bitcoin transactions cannot be tampered with or hijacked by hackers.

Taproot, a more complex and advanced type of Bitcoin transaction, allows for more privacy and flexibility in how transactions are structured. With Taproot, multiple parties can agree on a complex deal without revealing all the details to the world. The upgrade of Taproot will prompt Bitcoin to open smart contract deployment, expand use cases and other scenarios to upgrade. That said, Taproot transactions can be more complex and subtle than sequential transactions, and it is this flexibility that makes NFT on Bitcoin possible.

1.3 Definition of Ordinals

The nature of Bitcoin is inextricably linked to the philosophy that guides its design and development. First, it is a philosophy designed to maximize an individual's ability to own and control his assets and identity through cryptography. It also treats money as a public good -- free from state control -- subject to purely mechanical and predetermined issuance. The concept of immobility in protocol design, deal closing, and release schedules is firmly rooted in the design and community that participates and uses the Web. So it's amazing to see new uses of bitcoin like this pop up, like Ordinals Same thing.

Ordinals is a mathematical concept that extends the set of natural numbers (1,2,3,......). , including a concept of sequence. If we consider satoshis (sats) to be the fundamental particle of bitcoin, that is, the smallest, indivisible building block, we can define the mapping between sats and ordinals by naturally counting the order in which these sats are cast. Mathematically, we can say that the set of satoshis is ordered, because there is a clear and well-defined mapping between the order in which these Sats are minted (sorted and recorded in the bitcoin chain) and the set of natural numbers we use to calculate them.

This mapping is possible because while the exchange value of BTC applies equally to all satoshis, the identity of each satoshi is uniquely determined by the blockchain record, making each satoshi irreplaceable, Because each satoshi is completely different from every other satoshi, it can be distinguished. Thus, while the concept of fungibility often centers on the exchange value of an asset, the perfect (i.e., complete, unique) history of each satoshi, from the moment it is minted, runs through every transaction, allowing us to assume an identity for each satoshi - an identity that may in turn affect the exchange value. However, this is not the only way to classify satoshi, as other equally valid numbering systems can be implemented, such as FIFO versus LIFO.

Of the 1.9 trillion satoshi mined to date, the ranking of satoshi naturally leads to multiple interpretations of the relative rarity and value of a single satoshi. Therefore, we can consider the first satoshi coin minted in a block to be much rarer than the average satoshi coin, as there are ~776,400 blocks in total. We can further identify the first satoshi in the difficulty adjustment, which occurs every two weeks (there are ~242 difficulty adjustments in total), or even the first satoshi after the halving, which occurs every four years (there have been 3 halves to date), to identify the incredibly rare satoshi. However, this attribution system is completely arbitrary, so other methods of conferencing sat rarity may end up being more dominant than the previously described sat issue-based system. Other schemes that define names, numbers, coordinates, percentages, etc. in satoshi order are also considered.

Section2 Protocol details

2.1 Ordinals Agreement

NFT 的全名为非同质化 Token （Non-Fungible Token），与比特币 (Bitcoin) 作为典型的同质化货币 Token （FT）不同，每个 NFT 独特且不同于其他任何 NFT。由于比特币网络的设计不允许出现 NFT，Ordinals 提出了一种新的处理方式来观察这些 BTC Token 的方式。

比特币总共有 2,100,000,000,000,000 个最小单位，即聪 (Satoshi)，而 1 个 BTC = 100,000,000 Satoshi。所以全部的比特币的数量是 2,100,000,000,000,000 Satoshi。Ordinals 通过为这些 Satoshi 进行顺序编号，将这些 Satoshi 区别开来，这也是「Ordinals：序数」这个项目名字的由来。编号的方式有多种，比如直接按照纯数字的顺序号比如 [2099994106992659](https://ordinals.com/sat/2099994106992659)，或者按照每个 Satoshi 出现位置的区块号+偏移量比如 [3891094.16797](https://ordinals.com/sat/3891094.16797) 等。对 Satoshi 进行编号后，任何资产，如 NFT、安全 Token 、账户或稳定币，都可以使用序号作为稳定标识符附加到 Satoshi 上。Ordinals 将这种「附加」（attach）动作称为铭刻（inscribe），类似于以太坊 NFT 的铸造（mint）行为。

The next question is how does Satoshi differ from other Satoshi? For example, in many magic shows, magicians will use coins, cards, and other items as magic props. To prove that the magician had not changed the coin or altered it, the magician would ask the audience to make a mark on the coin, implying that the coin was unique in the world and was different from other coins, so that the magician could not use other coins to deceive the audience. The Ordinals theory of ordinal number means that every Satoshi is different from every other Satoshi by labeling them.

Many people may think that this approach is far-fetched, but the emergence of a new thing is often accompanied by controversy. In addition, tagging bitcoin is not a new thing, such as Namecoin (BIP15), which tried to create DNS on Bitcoin, and Colorcoin, which tried to tag bitcoin. Ordinals is the most recent and successful of these attempts. Unlike the NFT system built by smart contracts such as Ethereum, all data from Ordinals Inscription is stored on the chain, does not rely on external storage such as IPFS or AWS S3, is decentralized in the true sense of the word, and is kept in the blockchain like all bitcoin transactions. For example, Taprootwizards, the Bitcoin NFT image that first came to light, is stored on the chain with the block number 774628.

However, storing the image on the chain takes up space from other normal bitcoin transactions. This is another controversial aspect of Ordinals, which "contaminates" Bitcoin's financial exchange system and takes up valuable storage space for normal money transfers. But another way of looking at it is that it opens up the world for Bitcoin to do more than just transfer money. Technically speaking, the bitcoin protocol has no type restriction on this part of the data, Ordinals follows the MIME protocol, the data type can be pictures, video, text, identity or other, so with the most powerful decentralized consensus of bitcoin, the future Bitcoin NFT related ecological imagination space is still large.

(Figure: Taproot Wizard became the largest ever BTC block, taking up close to the 4M limit of the BTC block)

Ordinals official documentation gives more details about the sat inscription versus Ethereum NFT. The two forms of NFT have their own characteristics, and Bitcoin NFT has a steampunk feel to it, using primitive mechanical infrastructure to build some retro but advanced worldview. Some technical background and distribution methods are described below.

2.2 Technical explanation of the Inscriptions

Bitcoin Script is a set of programming environment built into the Bitcoin network. It makes Bitcoin realize the function of programmable payment through a set of stack-based script code composed of some simple opcodes. For example, the most basic payment mode P2PK (Pay to Public Key) defines the check process of how to pay to public key through scripts.

Bitcoin Script is not a Turing-complete programming language, and its definitions and functions are mainly set up for various payment scenarios, rather than more complex business logic. And the Bitcoin community has been fairly restrained about adding new op_codes. It is also because of the inability to provide more complex functions with the programmability of bitcoin scripts. At that time, Vitalik, an important member of the bitcoin community, wanted to build a more complete programmable blockchain to support the development of more complex decentralized applications. This is also one of the reasons for the birth of Ethereum.

The Ordinals inscription content is entirely on the chain, stored in the spend script in the taproot script-path spend scripts path. Taproot scripts have very few restrictions on their content and receive a witness discount, making the storage of inscription content relatively economical. Taproot is the latest stage in the expansion of Bitcoin after segwit, which was designed to increase the volume of bitcoin transactions, but also objectively set the stage for ordinals to come into being.

The Bitcoin expansion created the Ordinals inscription. From a technical point of view, the more decentralized the blockchain, the least efficient it is. To this day, individual Bitcoin blocks are still 1M in size, the same size as the first one that Satoshi minted. Rather than go straight to the crude solution of increasing the block size, the Bitcoin community has gone for a separate approach that does not require a hard fork.

Here are the BTC base technologies/features that Ordinals relies on:

Isolation witness

The information of each transaction in Bitcoin is divided into two parts: basic transaction data and witness data. The former records the account balance and the latter verifies the user's identity. For users, what they are most concerned about is the core information related to assets such as account balance, so the verification of user identity does not need to occupy too much cost in the transaction. Simply put, the recipient of the transfer only needs to confirm that the asset is available, and does not need to know the details of the originator. However, in the Bitcoin transaction structure, witness data, or signature information, takes up a lot of storage space, which delays transfer efficiency and increases packaging costs. Isolated witness technology is to separate witness data from transaction information and store it separately.

(Figure: 2016 BTC update of the Isolation Witness Segwit technology)

Taproot

Taproot is a soft fork that optimizes the Bitcoin script to improve privacy, efficiency, and the network's ability to handle smart contracts. This is recognized as a significant upgrade to Bitcoin since the SegWit upgrade in 2017.

The Taproot upgrade consists of three different Bitcoin Improvement Proposals (BIPs), including Taproot, Tapscript and its core, a new digital signature scheme called "Schnorr Signature". Taproot aims to bring a number of benefits to Bitcoin users, such as increased transaction privacy and lower transaction fees. It will also allow Bitcoin to perform more complex transactions, broadening the range of applications. The ordinals protocol uses taproot script-path spend scripts to implement additional data, so to use the ordinals initial inscription, you need to use an address of the P2TR script type.

Lightning network

The Lightning Network was not directly related to the technical requirements of the ordinals protocol, but because the ordinals address was a Bitcoin address that supported the Lightning network, and because the Lightning network reduced transaction costs and sped up transaction confirmation, it could be used in the inscription process.

2.3 Encoding mode of BTC NFT

inscriptions Inscriptions The coding mode of the transaction

Since the taproot script can only be spent from the existing taproot output, the inscription is done through a two-stage commit/reveal procedure. First, in the commit transaction, a taproot output is created that is submitted to the script that contains the title content. Second, in the reveal transaction, the output created by submitting the transaction is spent, revealing the content of the inscription on the chain.

The inscription content is serialized using data push in conditions that are not executed, called "encapsulation". The envelope consists of an OP_FALSE OP_IF... OP_ENDIF, wrapped around any number of data pushes. Because envelopes are virtually operatic, they do not change the semantics of the script that contains them and can be combined with any other locking script.

A string containing "Hello, world!" The text of the inscription is serialized as follows:

The Ordinals protocol essentially serializes this piece of code into a witness script.

An example of coding is the inscription 139342, which inscribes a time string "Fri Feb 17 05:02:18 PM CET 2023" into the sat number 1324061169091174, Here is a link to it in the ordinals browser.

We canmempool.spaceTo see the details of this transaction:

We will analyze the encoding of the second part of the witness field to understand the encoding content of serialization:

So if we can decode this part of the witness script, we'll know what the inscription is. The encoded information is plain text, and other data such as html, images, videos, and so on are similar. In theory, users can define their own encoded content, or even encrypted content that only they know about, except that this content cannot be displayed in the ordinals browser.

inscriptions Inscriptions are independent - compared to previous solutions such as OP_RETURN or encoding data into multiple transaction outputs, people can now place more arbitrary content on a chain. But if the user adopts Ordinals, these inscriptions can also be bound to individual satoshis, enabling them to be traded and transferred as NFT. It is important that the inscription be associated with a single serial number. (sat) association is based on an off-chain method used to classify individual satoshis, which participating nodes must adhere to and agree to in order for any such connection between the inscription and serial number to "exist" in any meaningful sense. Although the inscriptions themselves are published into the actual blockchain data, and all full archive nodes can see, instantiate, support, and believe in the existence of the ordinal number itself requires social consensus.

2.4 Using ord to publish NFT

The official documentation provides the ord tool for engraving Inscrptions on BTC. You can refer to the release document which describes the Inscriptions and how to create and transfer the Inscriptions by ord. The Inscriptions can be used to record arbitrary content and can exist in bitcoin wallets. Like bitcoin, the Inscriptions are durable, unalterable, secure and decentralized. The maintenance of the Inscriptions requires the full bitcoin node to view the current status of the bitcoin blockchain, and the Inscriptions can create wallets controlled by the sat to construct transactions that are sent to another wallet. ord Rust-based command line tool that can be built on Bitcoin Core On top of your wallet. It provides commands to create, use, and transfer the Inscriptions. This document provides detailed instructions on how to install Bitcoin Core, synchronize the Bitcoin blockchain, create a Bitcoin Core wallet, and receive and send Inscriptions.

The inscriptions significantly expand the design space of Bitcoin, opening up more scenarios. This will form a whole new narrative, developing the cultural layer. It is a challenge and exploration to the function and use of the original Bitcoin. Inscriptions become a form of value collection, bitcoin OrdinalsNFT types mainly include image, text, video and audio. In the future, the market ecology of Bitcoin NFT will be more diversified. The construction of infrastructure and the use of tools are crucial to this emerging field.

Meanwhile, Bitcoin's Ordinals NFT differs significantly from a traditional NFT offering:

While Bitcoin's Ordinals NFT is always immutable, Ethereum-based NFT can technically be changed or deleted by the contract owner.

Bitcoin's Ordinals NFT always has on-chain content that is not lost. The creator of the inscription must pay a fee proportional to the size of the content. In contrast, Ethereum NFT content can be stored off-chain on platforms such as IPFS and can be lost.

Bitcoin inscriptions are safer. The inscription can be sold with the PSBT without the need for a third party (such as a trading platform or marketplace) to transfer it on behalf of the user. Ethereum NFT, on the other hand, tends to grant intermediary platforms unlimited licenses to user NFT, which can be difficult for ordinary non-technical people wanting to trade digital art to interact with using complex smart contracts.

Section3 Oridnals project and platform status

1. TwelveFold

TwelveFold, a Bitcoin NFT project from Yuga Labs, is a collection of 300 unique pieces of generative art. The works were created by the team using 3D modeling and algorithm-building and high-end rendering tools, with 3D and hand-drawn elements, all stored in a 12 based art system with 12 x 12 grid positioning. TwelveFold uses the Ordinals protocol to carve each piece into a certain number of satoshis on the Bitcoin blockchain, making them immutable and permanent.

TwelveFold opened its auction on March 4, 2023, and closed within 24 hours, raising $16.5 million. The auction is a blind auction, in which participants cannot see how much others have bid, only their current ranking. The highest bid is 10 BTC and the lowest bid is 0.01 BTC. After the auction, the first 288 successful bidders will receive their purchased works, which can be displayed or traded on the Xverse platform.

2. Bitcoin Punks

Bitcoin Punks is an NFT project modeled after the CryptoPunks on Ethereum, with a total of 10,000 different 8-bit pixel style avatars, each with unique attributes and scarcity. Bitcoin Punks were minted under the Ordinals agreement on February 9, 2023 and are traded on platforms such as Opensea.

Bitcoin Punks was the first project to successfully upload the original Ethereum CryptoPunks to the bitcoin blockchain using Ordinals, with all assets already minted for free by collectors. According to its development team, which is checking the hash value of every image uploaded to Ordinals and comparing it to the original 10,000 Crypto Punk images, the link to Bitcoin Punks must be the first inscription to appear, It must also contain the corresponding hash value on the Ordinals protocol.

3. Ordinal Punks

Ordinal Punks is an exclusive collection that pays homage to the CryptoPunks, one of the original Ethereum NFT series. In homage to the CryptoPunks, Ordinal Punks is a collection based on the BTC NFT, they are a figure figure (PFP) collection, available in 100 different styles. Ordinal Punks, cast in the first 650 inscriptions of Bitcoin, is a 192 192 pixel image created using an open source algorithm by anonymous Web3 creator FlowStay. Since Bitcoin's infrastructure requires users to operate a full Bitcoin node to make the inscription, Ordinal Punks' bids and inquiries are made on a Google table run by FlowStay, and the community is essentially using the project creator as a moderator on Discord. dingaling purchased seven Ordinal Punks at a cost of 211 ETH.

4. Sats.id

Project introduction

Sats Names is a standard for defining domain names for bitcoin using the Orinals protocol. The goal is to build an ecosystem of domain names for Bitcoin, set up by Bitcoin enthusiasts and developed entirely based on the Bitcoin network. The project has three main objectives:

• & have spent All domains will be built entirely on the Bitcoin network

Transactions on the Bitcoin network are all you need to register and update your SAT domain name. A single Bitcoin node can contain all the information needed for the state of the domain name. Without any other database or decentralized storage service, any client can independently calculate the true state of all domain names.

• & have spent The domain name agreement will remain absolutely neutral and trusted

Keep it absolutely decentralized, no one can turn off the protocol or prevent others from registering domain names, no smart contracts or front ends with privileged access, no tokenomics, no advance reservations, no gas tokens, no governance, no incentives of any kind.

• & have spent All domain names will be held and controlled by the first creator and there will be no duplicate domain names

For example, users of the first inscription to include "satoshi.sats "own the domain name and the right to update it. This agreement guarantees the rights and interests of the first founderby means of uniqueness. Because of the ordinal number, anyone can write any data they want, including duplicate names, which leads to collision and competition of name standards. Therefore, the principle of "First is First" is put forward in the ssats. id protocol.

Application scenario

• & have spent Nostr social protocol, you can use this domain name as your identity

• & have spent As the address of the Lightning network

• & have spent As the address of the Bitcoin network

• & have spent Login to various apps as a user name

• & have spent A quick query is available in the Bitcoin Web browser

Domain name status

Up to the Bitcoin network block height of 16826243:

id Indicates the domain name

Total transactions: 66,210

Number of unique domain names: 54,134

Independent cast: 29,106

gas fee generated: 131,773,878 sats

Section4 Related infrastructure

1. Casting tools

Ordinals Bot

Ordinals Bot is a tool for minting Bitcoin NFT on the Ordinals protocol, created by the Satoshibles team that founded Ordinals. The tool eliminates the need to run bitcoin nodes while a Bitcoin NFT is being minted. After entering the official website and uploading the file, the user will pay the casting fee through Lightning network or regular network, and the casting will be carried out after the transfer is completed. If the user provides the NFT receiving address, the NFT will be automatically sent to the user. If the user does not provide an NFT receive address, the Ordinals Bot will hold the inscription for it until the user sets it up. Once the user has set up the wallet, simply access the order checking tool to add the address and receive the NFT.

Gamma.io

Stacks NFT Marketplace Gamma, formerly known as STXNFT, changed its name to Gamma on April 27, 2022. The platform is designed to bring collectors, creators and investors together in the Bitcoin ecosystem to explore, trade and showcase NFT. The Gamma platform consists of three core products: the NFT Marketplace, Launchpad, and the social platform. Gama. io supports both the primary and secondary markets for Bitcoin NFT. Gamma.io offers a casting method called Gamma bot. Users can use the Gamma bot to cast their own unique digital works for collection or sale. Users can cast NFTS with a simple command that requires no coding or technical knowledge: just add a Gamma bot to Discord and type create And so on to create an NFT. Gama.io has also launched a.btc domain marketplace that allows users to have their own decentralized identity and website. Register, buy, sell, and transfer.btc domain names with Gama.io, and you can also bind them to your NFT.

ORDSWAP

https://ordswap.io/ ORDSWAP is a Ordinals marketplace and wallet built on the Bitcoin network on which ordinals inscriptions can be minting, bought and sold. The site provides a temporary wallet, but keeps the private key directly in the web page, and I'm not sure it's safe to do so. But you could see that they wanted to build a more user-friendly Ordinals infrastructure for more people.

Scarce City

https://scarce.city/ Scarce City is not a market specifically for Ordinals, but a relatively generic exchange using Bitcoin technology to sell bitcoin goods in bitcoin. Support escrow auctions.

Ordinals directory

https://ordinalsdirectory.com/ only provides the basis of the inscriptions show function, trading functions need to be adjusted to the project discord community in the form of P2P, inscriptions casting jump straight to ordinalsbot.com.

OrdinalHub

https://www.ordinalhub.com/ In addition to the basic inscription display, project display page, OrdinalHub provides an education page to do a popular science on Ordinals. A calendar is also provided for subsequent project releases. But it's hard to tell whether the project is real or not, and the ordinalhub website itself only provides a twitter feed, with no community entry.

2. Trading platform

ordinals.market

Ordinals Market is an open and decentralized platform on which anyone can post their work or collect the work of others. Ordinals Market also supports third-party application and service access to provide even more functionality and experience. Ordinals Market allows users to buy or sell BTC NFT with ETH, as well as browse and collect a variety of interesting and unique works. TwelveFold by Yuga Labs is on Ordinals Market. Linked to the verified Opensea list through Emblem Vault, a protocol that allows NFT to trade easily between different chains, Ordinals Market offers users access to all legitimate Bitcoin Punk NFT, To avoid being cheated.

Twetch

Twetch is a "Play to Earn" social network built on top of BSVS, allowing users to earn money by Posting content. The platform also includes an NFT marketplace, a BSV wallet, and several other features such as chat capabilities and workboards. With the rise of the Ordinals agreement, Twetch has also come to support BTC NFT and now they intend to integrate the Ordinals ecosystem into their infrastructure.

Twetch has also cast a series of NFT's called Planetary Ordinals on the Bitcoin blockchain through the Ordinals protocol, which are all planet-themed works of art.

openordex

OpenOrdex is a decentralized trading platform Ordinals. Created by community developer Oren Yomtov, Openordex is a geek project with a very hardcore UI style. Basic functions such as Collection display have been developed successively. openordex's centralized order book is based on the previously popular Web3 communication protocol Nostr. The current version of openordex supports only the buying and selling operations on the cli client (node client command line window) and Sparrow Wallet client.

Step 3: Wallet

Inscrptions are a new ecosystem, both infrastructure and tools of rapid growth. Wallet, as the foundation of the deep liquidity market, will be the key construction of the market foundation. The advent of the new wallet improves the portability of the Inscription, which from a hosting perspective may be better and more secure than the Ethereum NFT. The inscription is bound to a single satoshis and the custodian does not need to support the new token standard. The Bitcoin custodian only needs to provide UTXo-level escrow to ensure the security of the escrow inscription. But because Taproot is a more complex type of transaction, it may be more difficult for some users to create and manage NFTS on the Bitcoin blockchain.

Inscrptions& Ordinals Ecosystem Map

Ordinals Wallet

Ordinals Wallet is a wallet designed to send and receive the Ordinals protocol BTC NFT browser. In addition to the basic wallet functions, it also supports the Bitcoin NFT inscription browsing, retrieval, Collection uploading and other functions. It is still being updated. Functions such as improving transmission efficiency, UI optimization, and reading wallet balances are being developed.

In addition, Ordinals Wallet also conducted a 1,563 NFT airdrop called Pixel Pepes on February 28, which users could get with a single transaction in their wallet, but that airdrop is now closed.

Sparrow Wallet

Sparrow Wallet is a Bitcoin-based open source wallet that supports multiple transaction types and hardware devices. Sparrow Wallet also supports the Ordinals protocol, which was highly recommended by the Ordinals creators. Users can use Sparrow Wallet to receive, manage, and transfer BTC NFTS. Users can also create NFT with Sparrow Wallet by having a Taproot (P2TR) account and doing it on some website that supports ordinals.

Sparrow Wallet engrave some data (such as text, pictures, or videos) into a satoshis and uses the Taproot signature scheme to ensure the integrity and tamper-proof of the data. In this way, each Cong becomes a unique digital artwork, aka BTC NFT.

Hiro Wallet

Hiro Wallet is a wallet developed based on the Stacks chain for managing STX tokens. Support for Bitcoin NFT has already begun to roll out. Browser extension users can send bitcoin from their Hiro wallet using the same key or hardware wallet device to manage their STX and other assets across accounts, users can view their BTC holdings under "Balance" and also copy this address under "Receive", The Taproot address used to store the BTC NFT is soon displayed. As a bitcoin ecological Wallet, Hiro Wallet has many convenient built-in functions. Users can purchase STX directly using credit cards, debit cards or even bank transfers within Hiro Wallet, and then directly participate in the pledge within the wallet.

The wallet currently supports browser extensions for Chrome, Firefox, Brave, and desktop versions for MacOS, Windows, and Linux. With support for Ordinals, users can pay for new BTC NFT and deposit them directly into their accounts as "collectibles" by connecting Hiro Wallet to an application such as Gamma. You can also share your BTC NFT personal gallery.

Xverse

Xverse is a Stack-based bitcoin unmanaged wallet and is currently one of the largest markets in the Bitcoin NFT ecosystem.

Xverse 可以让用户创建、发行、购买和出售各种类型的 NFT，包括艺术品、音乐、游戏、域名等。Xverse 支持使用 STX Token 或者其他加密货币（如 BTC、ETH 等）进行交易，也支持使用 Hiro Wallet 或者其他钱包进行连接。

Support for Ordinals protocol has now been added to support the demonstration of BTC NFT; Xverse now supports transfers to Ordinals, and the functionality is still being improved.

Bitcoin.com Wallet

It is a mobile wallet that supports multiple cryptocurrencies (including BTC) and NFT (called BNT) minted on the Satoshi Vision (SV) network. The wallet is also planned to support the BTC NFT, which is cast on the Ordinals protocol, and provide corresponding display and trading capabilities. No functionality has yet been launched to support the Ordinals protocol.

4 Bitcoin inscription future market

According to a Galaxy Digital report. The inscriptions and ordinals based Bitcoin NFT market will reach $4.5 billion by 2025. The rapid rollout of Epigraph coupled with the market/wallet infrastructure already in place are key factors that predict Bitcoin NFT will reach a market cap of $4.5 billion within two years. NFT encoded by Ordinals turned BTC into a "digital artifact", perpetuated in Bitcoin itself. The introduction of Ordinals meant problems with stored information and had a direct effect on the development of the Bitcoin ecology. The integration of Ordinals NFT puts higher demands on data storage and costs for online transactions, and the real deal space is squeezed by Ordinals NFT. The increase in stored content has made the block several times larger, although, as the bitcoin community has argued, Bitcoin itself has been overrun with transactional properties, and the popular Ordinals NFT has opened up a new dimension of narrative.

In the future Bitcoin ecosystem, with the growth of Ordinals NFT, further expansion into mainstream NFT culture, such as PFP, memes, and utility projects, will rapidly advance the emergence of infrastructure such as marketplaces and wallets. This will lead to the creation of a large number of application tools, a new narrative ecology to expand the market share.

summarize

The basic setup related to bitcoin network NFT is in the very early stage, so the casting cannot be as convenient and simple as ethereum network. We need to learn to create different forms of wallet, distinguish different forms of payment methods, and synchronize all nodes of Bitcoin network before we can participate in the casting of NFT based on Ordinals protocol. There is no secure peer-to-peer trading tool like Opensea. Instead, the order book is updated using a shared spreadsheet, and sales can only be done over-the-counter or through escrow. It inevitably involves cheating.

Bitcoin Punks can be quickly minted by a full-node Bot developed and built by members of the community. If it takes a long time for an individual to complete the synchronization of all nodes, it can not be completed overnight. The following is an example of community members synchronizing all nodes of the Bitcoin network. However, at present, because the casting mode is order number mode, the user cannot know whether a certain ordinal number has been successfully connected to the chain. As a result, even if the casting of full-node Bot is unsuccessful, the user fee is charged at the same time, which causes the use threshold for some users.

Following the launch of the Ordinal protocol, the daily average Bitcoin block size hit a three-year high of 2,021,079.56. On February 7, Pierre Rochard, vice president of research at bitcoin mining company Riot Platforms, tweeted that the Inscriptions of the NFT protocol Ordinal, a bitcoin network, are using up 50% of the bitcoin block space, Block space utilization is 100% and the median rate is down.

As a result, the NFT Bitcoin community is divided over issuing NFT Bitcoin on the Bitcoin network based on the Ordinal protocol. Some believe it will provide more financial use cases for bitcoin, which will drive up demand for block space and thus fees. Bitcoin educator Dan Held, for example, argues that as block awards get smaller, miners will become increasingly reliant on transaction fees. If Ordinals does increase competition for block space, higher transaction fees may allow miners to continue protecting the Bitcoin network.

Others see it as a departure from Nakamoto's vision of Bitcoin as a peer-to-peer cash system, and that these FT-like structures have taken up block space on the Bitcoin network, potentially driving up transaction fees. For example, Satoshi Nakamoto rejected the idea of expanding the Bitcoin system in 2010, saying that "it is not scalable to stack every proof-of-work arbitration system in the world in one data set." The following disputes as part of the bitcoin offering NFT deserve our attention and ongoing resolution.

Contrary to the original intention of BTC: Some bitcoin holders believe that bitcoin exists to be a "peer-to-peer electronic cash system", and that the collection of BTC inscriptions sacrifices the financial attributes of Bitcoin itself, which is deviating from the market for the development of bitcoin.

Inscription data contamination: Many carrier nodes are not keen on downloading additional data, and the presence of inscription is obviously an additional nuisance for some nodes in the path of node downloads.

Market active data redundancy: After Bitcoin NFT becomes popular, adding NFT data takes up space in the Bitcoin blockchain database.

Popularity interferes with price: If Bitcoin NFTS become popular, the amount of space they take up on the Bitcoin blockchain could drive up the price of bitcoin transactions. This will hurt users in developing countries the most, and they are the ones who need decentralisation money the most right now. In the future, users who send bitcoins will face high transaction fees, which in many low-income countries is a big fee.

In this regard, PANews believes that many users enter the blockchain and Web3 not because of bitcoin, so they know little about the Bitcoin system. A large number of users have never used the bitcoin wallet, never used the bitcoin transfer, and do not know what the Bitcoin full node and lightning network are. The launch of Nostr social protocol and Ordinals protocol has increased the application scenarios on the Bitcoin network, guided more users to start to understand and understand the Bitcoin ecology, so that more users start to use Bitcoin. Therefore, it is not a bad thing that the Bitcoin network is open to development and multi-directional experimentation. As for how it develops, whether it is good or bad, the market is free to play and decide. I believe that in the future, there will be more voices and trends in the development of the market. Ordinals NFT on Bitcoin will open a new narrative. The growth and development direction of all parties in the market are full of interest.

As for the infrastructure related to bitcoin network NFT, with the increase of wealth effect and users, and the continuous competition among ecological products, it will be gradually constructed and improved. At present, what we can do is to pay more attention to the development of Bitcoin network ecology. At the same time, it should be noted that the current NFT projects on the Bitcoin network are in a state of confusion, and most of the initial projects belong to the gold in the sand. Users need to make careful adjustments when looking for business opportunities to avoid asset losses.

thank

https://mirror.xyz/quentangle.eth/zRV-TCg62FGhee89fTgAYUqywcc6x9wpTG6gVdMrEp0

https://academy.binance.com/zh/articles/what-is-taproot-and-how-it-will-benefit-bitcoin

https://www.forbes.com/sites/forbesdigitalcovers/2018/07/16/100m-magic-why-bruno-mars-and-other-stars-are-ditching-their -managers/?sh=5c4b370125b5

https://dune.com/domo/ordinals-sats-names

https://foresightnews.pro/article/detail/27917

https://www.8btc.com/media/6808192

https://www.galaxy.com/research/whitepapers/bitcoin-ordinals-inscriptions-5-billion-nft-market/

https://dune.com/dgtl_assets/bitcoin-ordinals-analysis

We use ChatGPT to generate a part of the content.

This article is composed of TraFinity Labs & Co-written by AIO Labs, AIONews was first published online. For more in-depth Web3 content, please pay attention to: