What are Bitcoin Ordinals? Putting data on individual satoshis
By SendPay Business · · 2 min read
Ordinals are a way of numbering individual satoshis, the smallest unit of bitcoin, and attaching data such as images or text to them. The attached data is called an inscription. The project launched in January 2023.
How they work
- Each satoshi is given a number based on the order it was created.
- Data is written into a Bitcoin transaction, using space made available by the SegWit and Taproot upgrades.
- That data is linked to a specific satoshi, which can then be sent and traded like a collectable.
Ordinals and NFTs
Ordinals are often compared with NFTs. The main difference is that an inscription's data is stored on the Bitcoin blockchain itself, while many NFTs on other chains point to files stored elsewhere.
Why they caused debate
Supporters say Ordinals bring new uses and fee income for miners. Critics say they fill blocks with non-payment data and push up fees for ordinary transfers. Fees did rise sharply at busy times after Ordinals became popular.
Where SendPay fits
SendPay platforms let customers buy, sell and hold crypto, held with regulated partners, alongside GBP, EUR and USD accounts, powered by licensed partners. SendPay doesn't offer trading tools, DeFi or lending.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.