Bitcoin Ordinals

Bitcoin Ordinals: A Numbering Scheme for Bitcoin

Bitcoin Ordinals is a numbering scheme for Bitcoin originated from the "Ordinals Theory" proposed by Casey Rodamor in January 2023. Focusing on "sats" (the smallest denomination of Bitcoin), it assigns a unique number to each sat, enabling tracking, trading, and transferring—similar to unique or non-fungible digital collectibles. Below is a detailed introduction:

Theoretical Foundation

Ordinals Theory tracks and labels individual sats on the Bitcoin network through off-chain methods, based on the order of their mining and transfers. As the Bitcoin network uses the Unspent Transaction Output (UTXO) model, tokens in each transaction can be traced back to their coinbase transaction, allowing numbering by the sat’s creation and circulation sequence.

Notation Methods

• Integer Notation: Assigns ordinal numbers based on the mining order of sats, e.g., 2099994106992659.

• Decimal Notation: Composed of the block height where the sat was mined and its offset within the block, e.g., 3891094.16797.

• Percentage Notation: Represents the sat’s position in Bitcoin’s total supply as a percentage, e.g., 99.99971949060254%.

• Name Notation: Encodes ordinal numbers using A-Z characters. The longer a sat is mined, the shorter its name—for example, the last mined sat will be named "a".

Rarity Grades

Ordinals Theory classifies sats into six rarity tiers based on their position in the blockchain: Common, Uncommon, Rare, Epic, Legendary, and Mythical. For instance:

• The first sat in the Genesis Block is Mythical.

• The first sat of each halving epoch is Epic.

Relationship with Inscriptions

Bitcoin Inscriptions are a way to etch data (code, images, audio, text files, etc.) onto the Bitcoin blockchain. Each inscription is associated with an ordinal, representing a combination of on-chain objectivity and social consensus. Inscriptions link to specific sats via Ordinals Theory and can be traded as NFTs, though this association relies on off-chain cataloging methodologies, and their recognition depends on social consensus.

Community Controversy

Bitcoin Ordinals and related inscriptions have sparked fierce debates in the Bitcoin community:

• Purists or Maximalists oppose using Bitcoin for anything other than peer-to-peer payments, arguing it violates Bitcoin’s original purpose.

• Supporters view this innovation as bringing new value and development possibilities to the Bitcoin network.