Inscriptions: Writing Data to Blockchain Units
Inscriptions are data attached to cryptocurrency units or transaction outputs. Bitcoin Ordinals protocol enables users to assign numbers to satoshis and inscribe text, images, or code, thereby creating digital collectibles and supporting BRC-20 and other experimental applications.
How Inscriptions Work
In Bitcoin, inscriptions are additional data written alongside transactions, such as text, images, or code. This information is attached to transaction outputs and recorded in the blockchain's public ledger. Once written, it becomes part of the transaction data, making it publicly verifiable and difficult to alter.
The Relationship Between Inscriptions and Ordinals
Ordinals The protocol uses “Ordinal Theory” to assign a number to each satoshi according to its mining order and allows data to be inscribed on satoshis. An inscription refers to the data added, while an ordinal generally refers to a numbered and inscribed satoshi; the two respectively emphasize the data content and the numbered unit that carries it.
BRC-20
BRC-20 is an experimental token standard built on Ordinals protocol for minting and transferring fungible tokens on the Bitcoin blockchain. It uses inscriptions for token records and is therefore different from Bitcoin digital collectibles, which primarily feature unique content.
Uses and Controversies
Inscriptions expand Bitcoin's uses and can be applied to digital art, collectibles, and token records. The controversy is that inscription transactions compete with ordinary transfers for limited block space, potentially increasing network fees; supporters believe this mechanism brings more functionality to Bitcoin.
Original Tutorial
https://www.binance.com/zh-CN/academy/glossary/inscription
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