Inscriptions
What Are Bitcoin InscriptionsCopied!
Bitcoin inscriptions, introduced in 2023 via the Ordinals protocol, enable the attachment of metadata to individual satoshis, the smallest unit of Bitcoin (BTC). A satoshi, named after Bitcoin's creator Satoshi Nakamoto, serves as the base unit for this process.
Ordinals assign sequential numbers to satoshis, allowing them to carry additional metadata known as inscriptions. These inscriptions are added directly to the Bitcoin blockchain, turning satoshis into carriers of information.
The primary applications of inscriptions include:
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Contextualizing Transactions: Adding payment references, invoice numbers, or personalized notes.
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Asset Transfers: Storing and transferring digital assets or documents as non-fungible tokens (NFTs).
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Token Creation: Supporting the development of BRC-20 tokens, the fungible token standard for the Bitcoin network.
How Inscriptions Work:Copied!
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Data is embedded in Bitcoin transactions using a specific format, such as JSON.
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Transactions containing the embedded data are linked to identifiable satoshis via their unique ordinal numbers.
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Ownership is assigned based on the transaction history of the satoshi. The data is not directly stored within the satoshi but exists within the blockchain.
