📚Ordinals and BRC20

Ordinals and BRC20 Explained Simply

What are Ordinals?

An ordinal is a distinct number given to each satoshi in accordance with the order in which it was mined. An ordinal inscription involves embedding various types of data, such as text, hashes, JSON code, or even images onto a satoshi.

What is BRC20?

BRC20 tokens are essentially ordinals that carry JSON-encoded information defining various attributes like name, supply, and transfer rules. When the creator embeds the necessary JSON data onto a satoshi, it transforms into a BRC20 token. Consequently, the satoshi adopts the identity of a BRC20 token, complete with its own distinct value, name, and transfer regulations. Thus, these tokens solely operate on the Bitcoin blockchain.