The emergence of Bitcoin NFTs in mid-January ignited fervent community discussions and unlocked a new wave of wealth-building opportunities. This guide provides a detailed overview of the Ordinals protocol, explains what Bitcoin NFTs are, outlines the minting process, highlights noteworthy projects, and introduces essential tools for navigating this burgeoning ecosystem.
What is the Ordinals Protocol?
The Ordinals protocol, created by software engineer Casey Rodarmor, launched on the Bitcoin mainnet on January 21st. It is a system for numbering the smallest unit of Bitcoin, the satoshi. Each satoshi is numbered sequentially based on the order it was mined and transferred, hence the name "Ordinals."
This protocol allows users to attach additional data—such as images, PDFs, videos, or audio files—to individual satoshis, making each one a unique NFT.
Note: A satoshi is the smallest unit of Bitcoin, equivalent to 0.00000001 BTC, meaning one Bitcoin consists of 100 million satoshis.
Understanding Inscriptions
Think of the Ordinals protocol as the system that numbers the satoshis. The act of attaching extra data to make a satoshi unique is called an "inscription." Once a satoshi is inscribed with digital content, it becomes an NFT that can be stored in a Bitcoin wallet or transferred via Bitcoin transactions.
Rapid Growth and Record Minting
Since its launch, the Ordinals protocol has gained significant traction. Data from analytics platform Dune shows explosive growth in Ordinals NFT minting since February, with the total number of inscriptions exceeding 3.1 million. A record was set on May 1st, with over 300,000 inscriptions created in a single day.
A Divided Bitcoin Community
The rise of Ordinals has sparked debate within the Bitcoin community. Some purists argue that the Bitcoin network should remain solely a peer-to-peer payment system. They believe that minting NFTs consumes block space and deviates from Satoshi Nakamoto's original vision, and should therefore be discouraged or blocked.
Prominent Bitcoin core developer Luke Dashjr has voiced strong opposition to this use of the network and has even developed a simple "spam filter" designed to identify and prevent inscriptions from being relayed across the Bitcoin network.
How to Mint a Bitcoin NFT
Two popular platforms for creating Bitcoin NFTs are Gamma and Ordinals Bot.
Minting with Gamma
- Choose Inscription Type: Select to inscribe a single image, multiple images, or text.
- Upload Content: For images, upload the file directly. For text, input it into the provided field (limited to 60 KB due to Bitcoin block space constraints).
- Select Fee Tier: Choose a transaction fee based on how quickly you want the mint processed. The "Economy" option is cheaper but can take from several hours to a few days.
- Enter Bitcoin Address: Provide an Ordinals-compatible Bitcoin address. This step is critical, as an error here is irreversible.
- Pay and Confirm: The system will calculate the total fee. Send the payment to the specified address to complete the process. Final confirmation on the blockchain may take hours or days.
- View Your NFT: Once confirmed, you can view your new Bitcoin NFT on an Ordinal viewer.
Minting with Ordinals Bot
The process on Ordinals Bot is similar to Gamma's. However, it currently only supports image inscriptions. A key difference is that users are not required to provide a Bitcoin wallet address immediately; it can be added later in the process.
For those ready to explore these tools, a good starting point is to 👉 discover advanced minting platforms that streamline the entire process.
Notable Bitcoin NFT Projects
Bitcoin Punks
Bitcoin Punks was the first project to successfully use the Ordinals protocol to bring the iconic Ethereum-based CryptoPunks to the Bitcoin network. All assets were minted for free by collectors.
Reported minting costs were around $25. While some community members claim subsequent sales reached over 1 Bitcoin on secondary markets, it's important to note that these trades primarily occurred Over-The-Counter (OTC). The verification of these high sale prices requires careful scrutiny.
Ordinal Punks
Ordinal Punks is a collection of 100 profile pictures (PFPs) inscribed within the first 650 Ordinals on Bitcoin. The project used an open-source algorithm and CC0 Punk sprites to generate new characters.
The mint price was 0.01 BTC. According to sales data, the first Ordinal Punk sold for 0.07 BTC, with the highest recorded sale reaching 9.5 BTC.
TwelveFold
TwelveFold is a highly anticipated generative art collection from Yuga Labs, the parent company behind Bored Ape Yacht Club (BAYC). The series consists of 300 limited edition pieces, each featuring a 12x12 grid that combines 3D graphics and hand-drawn features. The NFTs were auctioned, with bids placed in Bitcoin.
Essential Tools for the Bitcoin NFT Ecosystem
Wallets
- Ordinals Wallet: A web-based wallet specifically designed for the Ordinals protocol. It supports basic wallet functions, along with browsing, retrieving inscriptions, and uploading collections.
- Hiro Wallet: A established cryptocurrency wallet built for Bitcoin that now supports Ordinals. It offers browser extensions for Chrome, Firefox, and Brave, as well as desktop applications for MacOS, Windows, and Linux.
Minting Platforms
- Gamma.io: A platform that brings together creators, collectors, and investors in the Bitcoin ecosystem. Its core products include an NFT marketplace, a launchpad, and social features. Gamma's tools significantly lower the technical barrier for minting NFTs on Bitcoin.
- Ordinals Bot: Another popular tool for minting Ordinals, created by the @satoshibles team. It simplifies the process by eliminating the need for users to run a full Bitcoin node.
Marketplaces
- Generative.xyz: A platform for creating and collecting generative art NFTs on the Bitcoin network. It accepts both Bitcoin and Ethereum for payments and minting fees.
- Ordswap: A marketplace and wallet built specifically for Ordinals on Bitcoin. Users can mint, buy, and sell NFTs directly on the platform. However, due to the relatively nascent market, it's uncommon to see artworks selling for more than 0.1 BTC.
Frequently Asked Questions
What exactly is a Bitcoin NFT?
A Bitcoin NFT is a unique digital asset inscribed onto a single satoshi (the smallest unit of Bitcoin) using the Ordinals protocol. This inscription can be an image, text, video, or audio file, turning the satoshi into a collectible token stored on the Bitcoin blockchain.
How is minting an Ordinal different from minting on Ethereum?
The key difference is the underlying infrastructure. Ethereum NFTs are typically smart contract-based tokens, while Bitcoin Ordinals are individual satoshis inscribed with data. Minting on Bitcoin involves a direct transaction on the blockchain rather than interacting with a smart contract, which can make the process feel more fundamental but also sometimes slower and more dependent on network congestion and fees.
Do I need a special wallet to hold Bitcoin NFTs?
Yes, you need a wallet that is compatible with the Ordinals protocol and can recognize and handle inscribed satoshis. Standard Bitcoin wallets may not display your NFT correctly. Popular choices include Ordinals Wallet and Hiro Wallet.
Are Bitcoin NFT transactions reversible?
No. Like all Bitcoin transactions, once an inscription is minted or an Ordinal NFT is sent to another address, the action is permanent and cannot be reversed. Always double-check addresses before sending.
Why is there controversy around Bitcoin Ordinals?
Some members of the Bitcoin community believe the network's primary purpose is peer-to-peer electronic cash. They view Ordinals as a misuse of block space, driving up transaction fees and bloating the blockchain for what they consider non-essential purposes, deviating from Satoshi Nakamoto's original vision.
What determines the cost to mint a Bitcoin NFT?
The cost is primarily determined by the size of the data you are inscribing and the chosen transaction fee. Larger files and higher fees (for faster processing) will cost more. Fees also fluctuate based on network congestion.