{"id":606326,"date":"2023-02-09T22:49:50","date_gmt":"2023-02-10T04:49:50","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/02\/09\/ordinals-a-common-ground-for-ethereum-and-bitcoin-maximalists\/"},"modified":"2023-02-09T22:49:50","modified_gmt":"2023-02-10T04:49:50","slug":"ordinals-a-common-ground-for-ethereum-and-bitcoin-maximalists","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/02\/09\/ordinals-a-common-ground-for-ethereum-and-bitcoin-maximalists\/","title":{"rendered":"Ordinals: A common ground for Ethereum and Bitcoin maximalists?"},"content":{"rendered":"
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\"Blog<\/span><\/p>\n

Representing real-world assets on the Bitcoin blockchain is nothing new.<\/span><\/p>\n

Over a decade ago, projects like the Colored Coin protocol and Counterparty exchange proved<\/span> Bitcoin<\/span><\/a> could track items, not just units of currency, in a decentralized way.<\/span><\/p>\n

However, consensus issues prevented either project from gaining widespread adoption in the market.<\/span> Ethereum<\/span><\/a> quickly took over as the go-to platform for minting and deploying unique digital artifacts. This preference led to the rise of<\/span> non-fungible tokens, or NFTs<\/span><\/a> as they\u2019re more commonly known today.<\/span><\/p>\n

But, things appear to have come full circle as one Bitcoin developer looks to reinvent tokenized assets on the Bitcoin blockchain. Even the Ethereum community seems to be encouraging this new venture. The move suggests a potential unity between what many see as two of the cryptocurrency industry\u2019s longest-standing rivals.<\/span><\/p>\n

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What are Bitcoin Ordinals?<\/b><\/h2>\n

Bitcoin Ordinals use an open-source protocol that assigns unique identities to individual<\/span> satoshis (sats)<\/span><\/a>. Named after Bitcoin\u2019s creator(s), Satoshi Nakamoto, satoshis are the smallest units of bitcoin. Using the Ord software, the protocol adds data to these sats and allows software users to track them based on a system called ordinal numbers.<\/span><\/p>\n

At a high level, this involves assigning a numerical value to each satoshi based on several factors. These factors include the time when that satoshi entered into circulation through<\/span> mining<\/span><\/a> as well as the specific<\/span> block height<\/span><\/a> where the satoshi appears.<\/span><\/p>\n

Users can use software called Ord to track each satoshi. The system also inscribes them with content to create bitcoin-native digital artifacts.<\/span><\/p>\n

Users can trade and transfer these uniquely-identified satoshis just like any normal bitcoin unit. But unlike Colored Coins or most Ethereum NFTs, the digital item itself is stored entirely on-chain \u2014 not elsewhere on the internet.<\/span><\/p>\n

This functionality wouldn\u2019t be possible on Bitcoin without implementing SegWit and<\/span> Taproot<\/span><\/a> \u2014 two soft fork upgrades that helped to increase Bitcoin\u2019s block capacity.<\/p>\n

Who created Bitcoin Ordinals?<\/b><\/h2>\n

Bitcoin developer Casey Rodarmor launched the Ordinal protocol on January 21, 2023. Rodarmor set out to create a system for numbering satoshis that would give each a unique serial number. This unique identifier would then allow users to track each satoshi across the blockchain. He wanted to be able to accomplish this in a way that was entirely Bitcoin native, without using sidechains or separate tokens.<\/span><\/p>\n

Rodarmor earned a degree in Computer Science from University of California, Berkeley. Most recently he worked as a software engineer for Agora, an open-source app that improves upon the<\/span> Bitcoin Lightning Network<\/span><\/a>.<\/span><\/p>\n

Rodarmor\u2019s idea isn\u2019t the first time a numbering system has been proposed to assign unique identifiers to individual satoshis. In fact, a BitcoinTalk user by the name of jl2012<\/span> published an almost identical proposal<\/span><\/a> for Ordinals in October 2012. At the time, another Bitcoin developer discredited the post as an \u201cold idea.\u201d<\/span><\/p>\n

Rodarmor has since<\/span> acknowledged jl2012\u2019s work<\/span><\/a> in the last section of a mailing list post announcing Ordinals.<\/span><\/p>\n

How do Ordinals work?<\/b><\/h2>\n

The Ordinal protocol consists of two main parts:<\/span><\/p>\n