The decentralized digital ecosystem today has been evolving at lightning speed, with Bitcoin heading the evolution. Now, the Bitcoin blockchain is in the headlines for another reason – Ordinals. These ordinals, equivalent to non-fungible tokens, have been on the Bitcoin network for mere months. But the popularity they have gained within such a small time is enormous, with over 6.82 million ordinals created. Such trends have made an ordinals marketplace and wallet built on Bitcoin a valuable business option. Here, we will look through what these novel Bitcoin-native business models have to offer aspiring business owners like you.
Ordinals: An Overview
Ordinals or ordinal inscriptions are digital assets equivalent to non-fungible tokens (NFTs) on the Bitcoin blockchain. The Ordinals Protocol, the facilitator for these assets’ creation, was implemented on the network earlier this year. These inscriptions are recorded into satoshis which are the smallest individual units of the monetary value of a Bitcoin. One Bitcoin equals 100,000,000 satoshis, and each can now be put to full use through ordinals.
While ordinals were not in the original vision of Bitcoin’s creators, they have proved to be game-changers. Allowing various data forms (like text, images, and GIFs) to be inscribed directly on the Bitcoin blockchain has opened the gates for innovation. The below graph shows the number of ordinals inscribed since their inception.
The Technology Behind Ordinals
Ordinal inscriptions are created using the Ordinals Protocol based on the Ordinals theory. The Ordinals theory emphasizes giving individual identities to each satoshi that can be transferred, tracked, and contain arbitrary data. It also details inscribing data directly on the Bitcoin blockchain through satoshis without external support.
These digital artifacts are possible now, thanks to the Taproot upgrade on the Bitcoin network, these digital artifacts are possible now. This upgrade allows data of larger sizes (almost 4MB) to be stored inside a Bitcoin block. Since these are stored on-chain, data in the ordinals cannot be modified, firmly establishing Web3’s core ethos.
Ordinals Marketplace: What Does It Present?
An ordinals marketplace is a platform that lets people create and trade digital artifacts on the Bitcoin network. These platforms are essentially similar to any other NFT marketplace, except they operate on the Bitcoin network. They ease the process of creating ordinal inscriptions, which involves downloading a full Bitcoin node and using special open-source software.
These platforms need users to have a Bitcoin wallet compatible with the Taproot upgrade to create and sell ordinals. Some of them even offer no-code ordinal creation tools, where it is enough to pay for transactions without coding.
Talk about the Prospects of Running a Feature-rich Ordinals Marketplace Now!
Popular Ordinals Marketplaces
- Ordinals Market is the largest marketplace in the current Bitcoin ecosystem. The platform allows people to trade ordinals through Bitcoin wallets and verified Ethereum vaults. Such extended support appeals to the broader community, resulting in numerous derivative projects gaining a foothold.
- Ordswap is an entirely Bitcoin-native ordinals marketplace that allows people to create and trade ordinals similar to erstwhile NFT ventures. It also provides a branded wallet that comes with support for ordinal inscriptions that have made the platform. Surprisingly, it allows MetaMask wallets to be connected for trades, appealing to the broader community.
- Magic Eden was the first NFT marketplace to provide support to ordinals. The platform offers its prominent elements to the Bitcoin network, including Launchpad and MagicDAO. The platform supports significant ordinals wallets, which we will see later.
- Gamma is another Bitcoin-native ordinals marketplace that also supports Stacks, a Layer-2 network on Bitcoin. The platform enables users to create and mint ordinal inscriptions on the Bitcoin network. Gamma also provides a no-code launchpad for creating ordinals on the Bitcoin blockchain.
Looking Into a Wallet Built on Bitcoin
While looking at ordinals, knowing how one can store them is essential. Regular Bitcoin wallets cannot store ordinals, and only ones built with the Taproot upgrade can be used for them. These wallets have arisen as an alternative to custom wallets that involve a complex creation process.
Most of these wallets have launched very recently, and their developers are busy adding more functionality to their apps. While some wallets allow people to hold and transact Bitcoin ($BTC) and ordinal inscriptions, others offer limited functionality.
Popular Wallets Built on Bitcoin
- Ordinals Wallet is the first application that enabled users to hold Bitcoin-native digital artifacts. Initially, it allowed people can receive, store, and view ordinals. Later, it upgraded to allow purchasing and listing ordinals, enhancing its functional range.
- The XVerse Wallet is another famous ordinals wallet that eliminates users’ need to download entire Bitcoin nodes. It is only enough for a user to pay a fee in Bitcoin ($BTC) after uploading the data to be inscribed. The actual inscription is undertaken by Gamma, the marketplace we had seen earlier.
- Hiro Wallet is functionally similar to the XVerse Wallet, with inscriptions being minted by Gamma. The application additionally supports Stacks, a popular Layer-2 network in the Bitcoin ecosystem.
- Sparrow Wallet is the initial wallet that came alongside the Ordinals upgrade. Initiating the application is a tad harder since it involves coding to make it compatible with storing ordinals. As of now, the Sparrow Wallet is primarily “Recieve Only,” meaning one can only receive and store ordinals on it.
Benefits of an Ordinals Marketplace and Wallet Built on Bitcoin
- Ordinal marketplaces and wallets built on the Bitcoin network expand its ecosystem to new heights. Now, one can do almost anything possible in other networks with ordinals, removing the “Digital Gold” tag from Bitcoin.
- These applications could be game-changers, as they tend to diversify the Bitcoin community. Creators, collectors, traders, and business owners can be part of the world’s largest blockchain ecosystem.
- These ordinals-based platforms also support the notion of on-chain data storage that has been absent in most networks. Using these eliminates the need for external decentralized storage systems like IPFS, eliminating risks that arise with external storage.
Why Choose Blockchain App Factory to Develop Ordinals Marketplaces and Wallets?
At Blockchain App Factory, we support game-changing innovations, and Bitcoin ordinals surprised us with its fast rise to fame. Our seasoned campaigners can assist you in creating an ordinals marketplace and wallet built on Bitcoin. We focus on all aspects, including features, functionality, and security elements, that make our client ventures run effectively. Our commendable expertise working with the Bitcoin network allows you to build a seamless business application catering to the globe’s biggest blockchain community.
Interested in our Bitcoin-native business provisions? Fill out the form below to strike up a conversation with one of us to plan your new venture!