Understanding the Ordinals Market and Protocol: What You Need to Know?

The Bitcoin ecosystem has long been at the forefront of the hybrid blockchain environment, leading the growth of various cryptocurrencies and popularizing DeFi solutions. The latest innovative move of the Bitcoin family is the introduction of Bitcoin Ordinal. The emergence of the Ordinals protocol opens up new ideas for the development of the BTC ecosystem, which allows cryptocurrency users to freely use the block space of BTC to deploy NFTs or tokens, and also derives Ordinals market, so what is the Ordinals market? Many people still don’t understand it. Simply put, it is a place to buy Bitcoin Ordinals. Next, I will explain it in detail to help you fully understand the Ordinals market.

What is the Ordinals market?

Ordinal Market is a popular platform for purchasing BTC Ordinal running on the Ethereum network, using digital vault technology to store Bitcoin information. These vaults effectively contain Bitcoin imprints, allowing users to trade Bitcoin assets on the Ethereum network. However, if a user claims their engraving and opens the vault, these Bitcoin assets can no longer be sold on the open market.

Ordswap is a very useful platform that provides convenient options for buying, selling and generating Ordinal. Users can easily trade using Ordswap, engage the Bitcoin network, and generate BTC Ordinal without leaving the platform. Additionally, Ordswap provides active traders with streamlined search functionality and trending statistics, allowing them to trade more easily.

Magic Eden is a popular choice among digital artists, providing them with a seamless experience to create BTC Ordinal and sell it quickly. This platform allows artists to convert their works directly into BTC Ordinal and sell them instantly. However, due to limitations of Bitcoin technology, Magic Eden does not support the royalty resale function. This means that once a work is sold, the artist cannot earn money from future resales. Nonetheless, Magic Eden remains an ideal platform for artists to sell digital art.

What is the Ordinals protocol?

The Ordinals protocol is a system for numbering and tracking Satoshi, the smallest unit of Bitcoin. Based on the Ordinal Theory methodology, the protocol assigns a sequence number to each satoshi through the order of mining and transfers, and tracks their movement through the Bitcoin supply. This system ensures the order and traceability of transactions, providing an important guarantee for the security and transparency of the Bitcoin network.

The innovation of the Ordinals protocol is to allow users to make each satoshi unique by adding personalized inscribed data on the satoshi. This feature allows a variety of digital artworks, such as pictures, video games, and music, to be created and traded on the Bitcoin network. Through inscription, the value of digital artwork is further established and protected. This provides artists and collectors with more creative and investment opportunities.

The Ordinals protocol creates new uses for Bitcoin, beyond simple value transfer, making Bitcoin possible for NFTs. The protocol was developed by software engineer Casey Rodarmor in January 2023 and released on the Bitcoin mainnet. Inspired by CVSTrac, he hopes to implement NFT functions on Bitcoin similar to those on blockchains such as Ethereum, Solana and BNB Smart Chain. Through the Ordinals protocol, Bitcoin can be traded and held as a unique, irreplaceable digital asset, providing a larger market and value system for creators of artwork, music and other digital content. This will further promote the application scope and development of Bitcoin.

Because Bitcoin’s code is difficult to modify and nodes and developers are worried about network security risks, Bitcoin NFT has not received widespread attention and application.

As the crypto ecosystem develops, more innovative ideas emerge, and they believe that non-fungible tokens also have their place on the Bitcoin blockchain. As of February 2023, the number of engravings using Ordinals has exceeded 100,000, and users have uploaded various contents to the network.

The Ordinals Protocol has some key differences from traditional NFTs, which are typically made using smart contracts on blockchains such as Ethereum, Solana, and BNB Smart Chain, and sometimes they The assets represented are stored elsewhere.

The above is the detailed content of Understanding the Ordinals Market and Protocol: What You Need to Know?. For more information, please follow other related articles on the PHP Chinese website!