DeutschThe Ordinals protocol allows NFTs to be stored directly on the Bitcoin blockchain. How Bitcoin Ordinals work, why they’re controversial among Bitcoiners, and what role they play in the BTC ecosystem today.
What are Bitcoin Ordinals?
Bitcoin Ordinals is a protocol that brings NFTs to the Bitcoin mainnet. It was created by Casey Rodarmor, who previously worked as a Bitcoin Core developer. The protocol was released in January 2023.
This allows NFTs to be transferred via the Bitcoin blockchain. A sidechain is not necessary for this. Everything happens on the mainnet. Previously, this functionality was only known from dedicated smart contract platforms like Ethereum or Solana. Ordinals calls this feature Inscriptions.
As stated on the official website of the project:
Inscriptions using the Ordinals protocol are fully on-chain and don’t require a sidechain or a separate token.
How do Inscriptions work with Bitcoin Ordinals?
The principle: Specific satoshis are assigned certain ordinal numbers through the Ordinals protocol—the so-called Ordinals, after which the concept is named. These ordinal numbers then allow data on the blockchain to be attached to specific satoshis.
This attached file (which can be an image, text, audio file, or even code) is stored on the Bitcoin blockchain. The inscribed satoshi can then be transferred like any other satoshi through normal Bitcoin transactions. The attached artifact remains permanently connected to it.
Bitcoin Ordinals vs. NFTs on Ethereum: The Difference
Although Bitcoin Ordinals are often compared to traditional NFTs, there’s a crucial technical difference. With most Ethereum NFTs, the on-chain data merely points to a file stored externally. With Ordinals, however, the content is stored entirely on the Bitcoin blockchain.
This brings both advantages and disadvantages: Ordinals are permanently available and independent of external storage locations. At the same time, they’re less flexible since Bitcoin doesn’t support smart contracts and the inscription size is limited by the block format.
Why NFTs on Bitcoin are Controversial
From the start, the protocol sparked opposing reactions among Bitcoiners. On one hand, users were enthusiastic. On the other hand, there’s considerable criticism and rejection.
The Bitcoin Block Size Debate
Until 2017, there were conflicts among supporters of the largest cryptocurrency, now known as the Blocksize War. The question was: Should the Bitcoin block be enlarged or should its data volume remain at one megabyte?
The Bitcoin Core developers and the majority of the network decided on the smaller block. The opposition split off and formed Bitcoin Cash and later Bitcoin Satoshi Vision.
With Ordinals, the discussion about block size resurfaced. In July 2017, SegWit changed Bitcoin’s transaction format. Another change occurred in late 2021 with the Taproot upgrade. As a result, the one-megabyte block size limit can be exceeded. Blocks can grow up to four megabytes.
Bitcoiners disagree on whether the spread of NFTs is an appropriate reason to enlarge blocks up to four megabytes. There’s concern that the blockchain could grow unnecessarily and prevent inclusion. This danger was supposed to be prevented by a block size limit.
Critics and Supporters of Bitcoin Ordinals
Critics include the well-known Bitcoin maximalist Jimmy Song. He wrote on Twitter:
Unpopular opinion: If inscriptions bloat the blockchain, reducing the block size must be considered.
Bitcoin developer Luke Dashjr holds a similar position. He proposed banning Ordinals from the network through a spam filter. Supporters of Ordinals argue, however, that the ecosystem can grow through the protocol. Additionally, higher transaction fees are a welcome incentive for miners, especially after each halving.
Bitcoin Ordinals vs. BRC-20 Standard and Bitcoin Runes
The success of Ordinals triggered a wave of additional token standards on Bitcoin.
BRC-20: The First Token Standard Based on Ordinals
Based on the Ordinals protocol, a new technology called BRC-20 emerged in March 2023. These are user-generated fungible tokens that live on the Bitcoin blockchain. The name and most basic functions are modeled after Ethereum’s ERC-20.
BRC-20 triggered a real memecoin boom on Bitcoin in 2023, but also pushed the network to its limits. Since BRC-20 requires a separate inscription for each token action, numerous unnecessary transaction remnants, so-called “junk UTXOs,” were created, unnecessarily bloating the network.
Bitcoin Runes as a Technical Evolution
From precisely this criticism, Casey Rodarmor developed the Runes protocol in 2024, which went live right on time for the Bitcoin halving in April 2024. Runes is written from scratch, doesn’t rely on Ordinals, and is significantly more efficient in handling network resources.
Today, Runes has overtaken BRC-20 as the dominant standard for fungible tokens on Bitcoin. Bitcoin Ordinals themselves remain the central technology for non-fungible content (i.e., traditional NFTs, art, and digital collectibles).
Between the rise of BRC-20 and the establishment of Runes, there were further experiments. The ORC-20 standard attempted to directly address the technical weaknesses of BRC-20 in 2023, but it never achieved widespread adoption.
Bitcoin Ordinals: Current Status 2026
Ordinals have evolved from an experimental protocol to an established infrastructure on Bitcoin. By January 2026, the total number of inscriptions rose to over 107 million, with new mints continuing in March and April 2026.
Market data shows a mature ecosystem: In March 2026, Ordinals generated $46.8 million in trading volume across 59,585 transactions with 14,909 individual buyers. The average sale price was $785, with wash trading below 1%. This indicates genuine market interest, not artificial inflation.
Bitcoin Ordinals Marketplaces and Wallets
A noticeable setback in 2026 was the withdrawal of Magic Eden. In February 2026, the platform announced it would discontinue support for Bitcoin Ordinals, Runes, and EVM NFTs—trading ended on March 9, 2026, and the APIs went offline on March 27. This has triggered market consolidation.
The most important platforms for Bitcoin Ordinals currently are:
- OKX NFT: Integrated marketplace of the crypto exchange, one of the main destinations after the Magic Eden exit
- Unisat: Pioneer wallet and marketplace, specifically developed for Ordinals and BRC-20
- Gamma: Established Bitcoin NFT marketplace with launchpad features
- Ordinals Wallet: Community-funded marketplace with its own wallet
- Xverse: Wallet with marketplace aggregation for multiple platforms
Well-Known Ordinals Collections
There are now established collections with considerable valuations. The best-known Bitcoin Ordinals collections include:
- Taproot Wizards: Homage to the Taproot upgrade, created one of the largest Bitcoin blocks in history
- Ordinal Punks: A tribute to CryptoPunks on Ethereum, limited to 100 pieces
- NodeMonkes: The first 10,000-piece collection on Bitcoin with deliberately pixelated aesthetics
- Bitcoin Puppets: One of the most liquid Ordinals collections on the market
Quirky Content on the Bitcoin Blockchain
Users use Ordinals to store various types of content on the Bitcoin blockchain. The data ends up on over 14,500 nodes worldwide. A project called Taproot Wizards made it their mission to expand the block size as much as possible. On the night of February 1 to February 2, 2023, Ordinals created what was then the largest Bitcoin block of all time with a file size of 3.94 megabytes.
Besides images, there’s other quirky content. One user stored a reinterpretation of the video game classic Doom on the blockchain. While it can be accessed, it can’t be controlled properly.
Conclusion: What You Should Know About Bitcoin Ordinals
Bitcoin Ordinals are here to stay in the crypto scene. What began as an experiment in 2023 is now an independent application layer on Bitcoin—with over 100 million inscriptions and an active secondary market. The old debate about bloated blocks persists, but miners also benefit from the additional fees.
Where things are headed will likely be determined by three factors: further market consolidation after the Magic Eden exit, technical extensions like Recursive Inscriptions, and integration with Bitcoin Layer 2 solutions. One thing is clear: Ordinals are not a short-term trend, but have become a permanent part of the Bitcoin ecosystem.
Frequently Asked Questions About Bitcoin Ordinals
- Are Bitcoin Ordinals the same as NFTs?
No, even though they are often called that. Classic NFTs on Ethereum usually only store a reference to an externally hosted file. Bitcoin Ordinals, on the other hand, store the entire content directly on the Bitcoin blockchain. This makes Ordinals more permanent, but less flexible and more expensive to create.
- What are Bitcoin Ordinals? A simple explanation
Bitcoin Ordinals are digital artifacts stored directly on the Bitcoin blockchain. The Ordinals protocol assigns unique numbers to individual satoshis. Data such as images, text, or code can then be permanently attached to these satoshis—similar to an NFT, but entirely on Bitcoin.
- What is the difference between Bitcoin Ordinals, BRC-20, and Runes?
Ordinals are non-fungible inscriptions for unique digital artifacts, comparable to NFTs. BRC-20 is a token standard that builds on Ordinals and enables fungible tokens. Runes is a standalone protocol for fungible tokens that is technically more efficient than BRC-20 and has largely superseded it.
