8 min read

Ordinals and Satoshi Inscriptions

Published on
Mar 7, 2023
This article is for general information purposes only and isn’t intended to be financial advice.
Phoenix Baker
Subscribe to our newsletter
Read about our privacy policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Ordinal theory is one of the latest protocols designed to support the creation and trading of digital artifacts, similar to SAT inscriptions. In this article, we'll explore what ordinals are, how they compare to SAT inscriptions, and why they matter in the world of digital art.

What are Ordinals?

Ordinals are a protocol designed to create and trade digital artifacts on the Bitcoin blockchain. These artifacts are unique and scarce, much like traditional art, and can be bought and sold on the open market. The protocol is designed to be simple, secure, and scalable, with a focus on providing a superior user experience for digital art collectors.

Ordinals are individual satoshis (SATs). The term ordinal comes from what creator Casey Rodarmor calls “Ordinals Theory,” the idea that individual satoshis can be labeled and tracked across Bitcoin’s supply. If users opt-in to this methodology, it becomes possible to see when SATs have been mined and in what order. Users can even apply different rarity traits to these individual SATs based on various criteria.

SAT Inscriptions: A Comparison

SAT inscriptions are another type of digital artifact, but they differ in several key ways from ordinals. Here are some of the key differences between SAT inscriptions and ordinals:


SAT inscriptions are always immutable, meaning they cannot be modified after they are created. Ethereum NFTs, on the other hand, can be mutable or immutable, depending on the contract code.


SAT inscriptions always store content on-chain, whereas Ethereum NFTs can store content off-chain, which may be lost.


Ordinals are designed to be simple and easy to use, whereas Ethereum NFTs can be complex and difficult to understand.


SAT inscriptions inherit Bitcoin's transaction model, which makes them more secure than Ethereum NFTs.


Ordinals are scarcer than Ethereum NFTs, which can be minted in unlimited quantities with a single transaction.

Why Ordinals Matter in Digital Art

Digital art is an emerging field, and as more and more artists create and sell their work online, there is a growing need for secure, scalable, and user-friendly platforms to support these transactions. Ordinals are designed to meet this need by providing a simple, secure, and scalable protocol for creating and trading digital artifacts.

By using Bitcoins blockchain as a foundation, ordinals offer several key advantages over other digital art platforms. For example, they are more secure, as they inherit Bitcoin's proven transaction model. They are also simpler to use, which makes them more accessible to a wider range of users.

Furthermore, ordinals offer a new way for artists to monetize their work. By creating unique and scarce digital artifacts, artists can sell their work directly to collectors on the open market, without the need for intermediaries such as galleries or auction houses. This allows artists to retain more control over their work and earn a larger share of the profits.

Join the Liqd Newsletter

Helpful easy-to-understand resources on everything non-fungible
straight to your inbox
We care about your data in our privacy policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.