Without getting too technical, you’ll also need a wallet that has “coin control” capabilities in order to avoid spending your ordinal NFT satoshis on network fees. Since the Ordinals protocol uses the Bitcoin Taproot update, you’ll need a wallet with a taproot wallet address. This is good for Bitcoin,” tweeted Bitcoin educator, Dan Held. The protocol brings more utility, transactions, miner incentives and overall growth in the Bitcoin economy. Many NFT enthusiasts are excited to see this technology possible directly on Bitcoin for the first time. This makes Ordinals NFTs all the more rare. Satoshi scarity is also cut in half every four years (halving every 210,000 blocks) and every six halvings, a conjunction occurs causing the adjustment and halving difficulties to coincide. When the block is adjusted, the Bitcoin network changes the hashrate with which the blocks must align. A new block is mined every 10min, and adjusted every two weeks. Furthermore, Bitcoin NFTs have unique rarity factors. The Bitcoin blockchain is attractive to NFT creators for being the most secure, decentralized, and time-tested blockchain, and sustainable minting using recycled energy. They are therefore just as secure, decentralized and impossible to destroy as the Bitcoin blockchain itself. Once the satoshi has been processed just as any other BTC transaction, it is then stored on the blockchain. By inscribing a serial number to each satoshi on the Bitcoin network in the order in which it is mined, the satoshi becomes a tracked and transferable NFT. Software engineer Casey Rodarmor found a loophole where to store nearly 4MB in a single Bitcoin block. Taproot updated a few things in the Bitcoin protocol that affects how much data you can store within a transaction. How is this possible? The Ordinals protocol uses a recent update from Bitcoin called Taproot that went live in November 2021. Before, satoshis were treated only as monetary units, though now with a transaction it's possible to inscribe satoshis with data make them unique Bitcoin NFTs. Ordinal Theory unlocks the ability to inscribe satoshis (individual units of Bitcoin) with unique images, music, videos, text and more directly on the Bitcoin base layer. However, recently Bitcoin NFTs have evolved using various technologies, with Ordinal Theory as the latest protocol. In 2016, the first Bitcoin NFT ‘Rare Pepe’ was mined, though the majority of NFT activity since took off on Ethereum due to smart contract limitations on Bitcoin. An NFT (non-fungible token) is unique data on a blockchain that can be linked to digital and physical objects to provide proof of ownership. There’s been a lot of buzz in the NFT community around a new form of NFTs: Ordinals.
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