The Ordinals ecosystem is experiencing explosive growth, bringing a new wave of innovation to the Bitcoin network. Unlike traditional blockchain developments that rely on smart contracts or sidechains, Ordinals leverage Bitcoin’s base layer in a novel way—transforming the smallest unit of Bitcoin, the satoshi (or "sat"), into unique digital assets. This guide breaks down everything you need to know about Ordinals, inscriptions, BRC-20 tokens, wallets, marketplaces, and how to participate—all in clear, beginner-friendly language.
What Are Ordinals?
Ordinals is a protocol that assigns a unique serial number to each satoshi—the smallest divisible unit of Bitcoin (1 BTC = 100,000,000 sats). These numbers are assigned based on the order in which sats are mined. For example, the very first satoshi ever mined gets ordinal number 1, the next gets 2, and so on.
This numbering system makes each satoshi distinguishable and potentially unique—breaking away from Bitcoin’s traditional model where all sats are fungible (interchangeable). The transfer of these numbered sats follows a first-in, first-out (FIFO) principle during transactions, meaning their order is preserved across inputs and outputs.
👉 Discover how to track and manage unique sats on the Bitcoin blockchain today.
Because both the numbering and transfer logic depend on sequence, the protocol is aptly named Ordinals. This foundational layer enables entirely new use cases on Bitcoin—like digital collectibles and tokenized assets—without requiring changes to Bitcoin’s core code.
What Are Inscriptions?
While Ordinals give sats identity, inscriptions give them purpose. An inscription allows users to attach arbitrary data—such as text, images, videos, or even HTML files—directly onto a specific satoshi. Once inscribed, that sat becomes a permanent, immutable record on the Bitcoin blockchain.
This process works by embedding data into a Taproot-based transaction. When the transaction is confirmed and included in a block, the data becomes permanently etched onto the designated satoshi. From then on, the inscribed sat carries that data wherever it goes.
Although a single satoshi holds the inscription, Bitcoin’s dust limit prevents transactions below 294 sats. So technically, an inscription resides within a UTXO (unspent transaction output) of at least 294 sats. However, only the ordinal number of the first sat in that UTXO is tracked for ownership and transfers.
Compared to traditional NFTs on platforms like Ethereum or Solana, Ordinals are fully on-chain. Most NFTs store metadata off-chain (e.g., on IPFS), making them vulnerable to broken links or altered content. In contrast, Ordinals store everything directly on Bitcoin—ensuring true permanence, security, and decentralization.
As Ordinals creator Casey Rodarmor puts it: traditional NFTs are “incomplete,” but Ordinals are “complete” digital artifacts.
Understanding BRC-20 Tokens
BRC-20 is a token standard built on top of the Ordinals protocol. It uses JSON-formatted inscriptions to create fungible tokens directly on Bitcoin—similar in concept to Ethereum’s ERC-20 tokens, but without smart contract functionality.
Creating a BRC-20 token involves inscribing specific JSON data onto a satoshi. This data includes key parameters:
"p": Protocol identifier (brc-20)"op": Operation type (deploy,mint,transfer)"max": Maximum supply of the token"lim": Maximum number of tokens per mint inscription
For example:
{"p":"brc-20","op":"deploy","tick":"ordi","max":"21000000","lim":"1000"}Once deployed, anyone can mint tokens (up to the max supply), following a “first come, first served” rule. After total supply is reached, further mints are invalid.
Unlike ERC-20 tokens governed by smart contracts, BRC-20 relies on community consensus and client-side validation. Transactions are processed using PSBTs (Partially Signed Bitcoin Transactions), not contract executions.
How Do Ordinals, Inscriptions, and BRC-20 Relate?
Think of it this way:
- Ordinals provide the foundation: they number every satoshi.
- Inscriptions add data: they turn numbered sats into unique digital artifacts.
- BRC-20 builds rules: it defines how JSON data can be inscribed to create fungible tokens.
Together, they enable a full ecosystem of digital assets—NFTs, tokens, domains—all natively on Bitcoin.
Key Differences: Bitcoin vs Ethereum Ecosystems
🔹 Tokens: BRC-20 vs ERC-20
| Feature | BRC-20 (Bitcoin) | ERC-20 (Ethereum) |
|---|---|---|
| Blockchain | Bitcoin (PoW) | Ethereum (PoS) |
| Smart Contracts | No | Yes |
| Transaction Method | PSBTs | Smart contract calls |
| Data Storage | On-chain via inscriptions | On-chain token logic + off-chain metadata |
BRC-20 lacks programmability but gains security and simplicity by living entirely within Bitcoin’s proven architecture.
🔹 NFTs: Ordinals vs Traditional
Ordinals-based NFTs are fully embedded in the blockchain. Every pixel of an image or line of code is stored directly in a block. There’s no reliance on external servers or IPFS links.
Traditional NFTs often point to off-chain resources. While IPFS is decentralized, files can still become inaccessible. Worse, some projects allow metadata updates—changing artwork or attributes after minting.
With Ordinals, what you see at inscription is what exists forever.
🔹 Domains: BTC vs ENS
Bitcoin-based domain systems (like .btc or .o domains via Ordinals) offer full decentralization:
- One-time creation fee
- No renewal required
- Data stored entirely on-chain
Compare this to Ethereum’s ENS (.eth), where users typically pay annual renewal fees. While secure and widely adopted, ENS requires ongoing management.
Bitcoin domains represent a shift toward truly permanent digital ownership.
Popular Tools in the Ordinals Ecosystem
Wallets
To interact with Ordinals and BRC-20 tokens, you need a compatible wallet:
- Unisat Wallet: Chrome extension supporting BRC-20 tokens, NFTs, and inscriptions.
- Xverse Wallet: Web3 wallet built for Stacks and Bitcoin ecosystems; supports Ordinals.
- OKX Wallet: Multi-chain non-custodial wallet with integrated DEX aggregation and full Ordinals support.
👉 Secure your BRC-20 tokens with a trusted non-custodial wallet now.
Marketplaces
Several platforms facilitate trading of Ordinals assets:
- iDclub: Full-service marketplace for BRC-20 tokens, NFTs, and domains with low fees.
- Magic Eden (Bitcoin): Leading NFT marketplace now supporting Bitcoin Ordinals.
- Unisat Marketplace: Offers trading for inscriptions and BRC-20 assets; includes swap functionality in beta.
How to Mint a BRC-20 Token
Step 1: Prepare Your Setup
You’ll need:
- A Chrome browser
- A compatible wallet (Unisat, Xverse, or OKX Wallet)
- Some BTC for gas fees
Install your preferred wallet from the Chrome Web Store.
Step 2: Start Minting
- Go to a platform like iDclub.io
- Connect your wallet
- Navigate to BRC-20 > BRC Inscription
Enter:
- Token ticker (e.g.,
pepe) - Mint amount per inscription
- Number of inscriptions (batch up to 1,000)
- Token ticker (e.g.,
Set:
- Receiving address
- Gas fee (use high priority during congestion)
- Reserved sats (use bc1q address for minimum 294 sats)
- Confirm and pay
After payment, your order enters processing. If confirmation is slow due to low fees, you can accelerate it (for extra cost). Once complete, the inscribed tokens appear in your wallet.
How to Sell BRC-20 Tokens
Selling requires creating a transfer inscription:
- From your wallet dashboard, go to My Inscriptions
- Select the token you want to sell
- Choose quantity and batch count
Set:
- Receiving address
- Gas fee
- Reserved sats
- Sign and submit
Once the transfer inscription is confirmed:
- Return to the marketplace
- Find your inscription under “My Items”
- Click List for Sale
- Enter price in BTC
- Confirm listing via wallet signature
You can later adjust the price by updating the listing.
How to Buy BRC-20 Tokens
Buying is straightforward:
- Search for the token (e.g.,
RATS) on a marketplace - Browse available listings
- Select one and click Buy
- Confirm gas fee (preferably high speed)
- Approve transaction in your wallet
After blockchain confirmation, the purchased inscription appears in your wallet balance.
Note: You can buy even before minting completes—market prices may be higher or lower than mint cost depending on demand.
👉 Start exploring rare inscriptions and trending BRC-20 tokens right now.
Frequently Asked Questions (FAQ)
Q: Can I store Ordinals in any Bitcoin wallet?
No. Only wallets that support Taproot addresses and recognize inscriptions (like Unisat, Xverse, or OKX Wallet) can display and manage Ordinals properly.
Q: Are BRC-20 tokens secure?
Yes—they inherit Bitcoin’s security model. However, since there’s no smart contract enforcement, users must rely on accurate client-side parsing of JSON data.
Q: Is minting BRC-20 expensive?
Costs depend on network congestion and inscription size. During peak times, fees can exceed $50 per mint due to high gas prices.
Q: Can I update or edit an inscription?
No. Once inscribed, data is immutable—this ensures authenticity but means errors cannot be corrected.
Q: Do Ordinals affect Bitcoin’s scalability?
They increase block space usage, contributing to higher fees during demand spikes. However, they operate within existing consensus rules without requiring hard forks.
Q: Are there royalties for creators?
Unlike Ethereum NFTs, Ordinals do not enforce creator royalties. Secondary sales go entirely to sellers unless manually shared.
Core Keywords: Ordinals, BRC-20, inscriptions, Bitcoin NFTs, satoshis, digital collectibles, on-chain data, Bitcoin ecosystem