Bitcoin Ordinals & NFTs: Complete Guide 2026

Published February 27, 2026 · by SpunkArt · 20 min read

Table of Contents

1. What Are Bitcoin Ordinals?

Bitcoin Ordinals are a system for numbering individual satoshis (the smallest unit of Bitcoin, 1 sat = 0.00000001 BTC) and attaching data to them. Created by Casey Rodarmor and launched in January 2023, the Ordinals protocol assigns a sequential number to every satoshi ever mined based on the order in which it was created.

This numbering system creates what Rodarmor calls "digital artifacts" -- essentially NFTs native to Bitcoin. By attaching data (images, text, HTML, audio, video, or any file type) to a numbered satoshi, you create an "inscription" that lives permanently on the Bitcoin blockchain.

The term "ordinal" refers to the sequential numbering: the first satoshi ever mined is ordinal 0, the second is ordinal 1, and so on. There are approximately 2.1 quadrillion satoshis in Bitcoin's total supply (21 million BTC x 100 million sats per BTC), each with a unique ordinal number.

Unlike Ethereum NFTs, which use smart contracts to point to off-chain data (usually stored on IPFS or centralized servers), Bitcoin inscriptions store the actual data on-chain in the witness portion of a Bitcoin transaction. The image, text, or file is literally embedded in the Bitcoin blockchain forever. No external dependencies. No IPFS links that might break. The data is as permanent as Bitcoin itself.

2. How Inscriptions Work (Technical Deep Dive)

Inscriptions leverage two Bitcoin upgrades: SegWit (2017) and Taproot (2021). Here's how they work at a technical level.

Witness Data and SegWit

SegWit (Segregated Witness) separated transaction signature data from the main transaction, placing it in a "witness" section. This witness data has a 75% fee discount compared to regular transaction data. Taproot extended this by allowing arbitrary data in witness scripts using a construct called script-path spending.

The Inscription Envelope

An inscription is created using a two-phase commit/reveal scheme:

Phase 1: Commit Transaction

A transaction is created that commits to a Taproot output containing the inscription data. This transaction doesn't reveal the data yet -- it just locks BTC to an address whose spending conditions include the inscription.

Phase 2: Reveal Transaction

A second transaction spends the commit output, revealing the inscription data in the witness. The data is structured as:

OP_FALSE OP_IF OP_PUSH "ord" OP_PUSH 1 OP_PUSH [content-type] OP_PUSH 0 OP_PUSH [data] OP_ENDIF

The OP_FALSE OP_IF ... OP_ENDIF block means Bitcoin nodes never actually execute the inscription data -- it's stored but ignored by consensus rules. The "ord" tag identifies it as an Ordinals inscription.

Size Limits

Because inscription data lives in the witness, it's subject to Bitcoin's block weight limit of 4 MB (4,000,000 weight units). In practice, a single inscription can be up to about 400 KB, though theoretical limits approach the full block size. Larger inscriptions cost proportionally more in transaction fees.

Immutability

Once inscribed, the data cannot be modified, deleted, or censored. It exists in a confirmed Bitcoin block that is secured by the entire Bitcoin mining network. As long as Bitcoin exists, the inscription exists. This is the strongest permanence guarantee available in all of digital technology.

3. Ordinals vs Ethereum NFTs

FeatureBitcoin OrdinalsEthereum NFTs (ERC-721)
Data StorageOn-chain (witness data)Usually off-chain (IPFS, Arweave, centralized servers)
Smart ContractsNone -- pure data inscriptionRequired (Solidity contracts)
PermanenceAs permanent as BitcoinDepends on storage provider
RoyaltiesNot enforced by protocolPartially enforced (marketplace dependent)
TradingPSBT-based (trustless)Smart contract calls
Collection StructureNo native collections -- community definedNative (each contract is a collection)
Gas/Fee CostVaries with BTC fees and data sizeVaries with ETH gas price
Ecosystem MaturityGrowing rapidly (launched 2023)Mature (launched 2017)
Network SecurityBitcoin hashrate (highest in crypto)Ethereum proof-of-stake

The fundamental philosophical difference: Ethereum NFTs are about programmability (royalties, access control, composability). Bitcoin Ordinals are about permanence and simplicity. An Ordinal inscription is just data on the most secure blockchain. No moving parts. No contract upgrades. No admin keys. Pure digital artifact.

4. Types of Inscriptions

Image Inscriptions

The most common type. JPEG, PNG, WebP, GIF, and SVG images inscribed directly on Bitcoin. The SpunkArt ME collection on Magic Eden is an example -- art inscribed permanently on Bitcoin's base layer. Popular formats include pixel art (small file sizes, low fees) and generative art (SVG/HTML-based, infinitely scalable).

Text Inscriptions

Plain text, JSON, and Markdown inscribed on-chain. BRC-20 tokens use JSON text inscriptions to deploy, mint, and transfer tokens. Text inscriptions are the cheapest to create because they're small.

HTML/Interactive Inscriptions

Full HTML pages with embedded CSS and JavaScript, creating interactive experiences that run entirely on-chain. Games, generative art, and interactive tools have been inscribed on Bitcoin. The HTML is rendered in the browser, but the source code is stored on Bitcoin.

Audio and Video

MP3, WAV, MP4, and WebM files can be inscribed, though the file size limit (~400 KB) constrains quality and duration. Short audio clips and compressed video loops are common.

Recursive Inscriptions

A powerful feature where one inscription references another using the /content/[inscription_id] syntax. This allows on-chain composability: a single artwork can reference shared libraries, fonts, or assets inscribed separately. This dramatically reduces the cost of collections by sharing common code across multiple inscriptions.

5. Ordinals Marketplaces in 2026

Magic Eden

The dominant Ordinals marketplace by volume and user base. Originally an Ethereum and Solana NFT platform, Magic Eden expanded to Bitcoin Ordinals and quickly became the market leader. Features include collection pages, rarity tools, activity feeds, and PSBT-based trustless trading. Magic Eden also supports Runes trading.

OrdinalsBot

Originally an inscription service, OrdinalsBot has expanded into a full marketplace. Their core strength is the inscription pipeline: they offer a user-friendly interface for creating inscriptions with options for file type, fee level, and batch processing. They handle the commit/reveal transaction process automatically.

Gamma.io

A Bitcoin-native marketplace focused on creator tools. Gamma offers no-code inscription creation, collection launches, and a curated marketplace. Particularly popular with artists who want a streamlined onboarding experience.

UniSat Marketplace

UniSat combines wallet functionality with an integrated marketplace for both Ordinals and BRC-20/Runes tokens. Strong among power users who want a single tool for all Bitcoin token activities.

OKX NFT Marketplace

OKX's multi-chain NFT marketplace includes Bitcoin Ordinals. Benefits from OKX's massive exchange user base, providing liquidity and visibility that smaller platforms can't match.

Win Free Ordinals at SPUNK BET

Play provably fair games with free SPUNK tokens and win real Bitcoin Ordinal inscriptions. 10,000 free SPUNK daily. No deposit needed.

Claim Free SPUNK & Win Ordinals

6. How to Create an Inscription

Creating your own Bitcoin inscription is more accessible than ever in 2026. Here is a step-by-step guide.

Step 1: Prepare Your File

Choose what you want to inscribe. Images should be optimized for size: 100-200 KB is ideal. Larger files cost more in fees. Supported formats include PNG, JPEG, WebP, GIF, SVG, HTML, plain text, JSON, MP3, and MP4. For pixel art, PNG at low resolution keeps costs minimal.

Step 2: Choose an Inscription Service

OrdinalsBot -- The most popular. Upload your file, choose your fee rate, and they handle everything. Supports batch inscriptions for collections.
Gamma.io -- Clean UI, creator-friendly. Good for first-time inscribers.
UniSat -- Integrated with the UniSat wallet. Inscription + wallet in one tool.
ord CLI -- For technical users. Run your own Bitcoin node with the ord indexer and inscribe via command line. Full control.

Step 3: Fund Your Wallet

You need BTC to pay for inscription fees. The cost depends on two factors: file size (more data = more block space = higher fee) and current network fee rate (sats/vByte). During low-fee periods, a small image inscription might cost $1-5. During high-fee periods, the same inscription could cost $20-100+.

Step 4: Inscribe

Submit your file through your chosen service. They'll create the commit transaction, wait for confirmation, then create the reveal transaction. The entire process takes 20-60 minutes depending on network conditions and the fee rate you selected.

Step 5: Verify

After both transactions confirm, your inscription is live on Bitcoin. You can view it on ordinals.com, Magic Eden, or any Ordinals explorer using its inscription ID. The data is now permanently on Bitcoin.

7. Wallet Setup for Ordinals

You need a wallet that understands Bitcoin Ordinals -- standard Bitcoin wallets will see the satoshi but not the inscription attached to it. Using a non-Ordinals wallet risks accidentally spending an inscribed satoshi as transaction fee.

Recommended Wallets

WalletTypeOrdinalsRunesBRC-20Best For
XverseMobile + ExtensionYesYesYesAll-around Bitcoin wallet
LeatherBrowser ExtensionYesYesYesStacks ecosystem + Bitcoin
UniSatBrowser ExtensionYesYesYesPower traders
Magic Eden WalletBrowser ExtensionYesYesNoMarketplace integration
OKX Web3Multi-platformYesYesYesMulti-chain users

Critical Safety Rules

8. BRC-20 vs Runes: The Token Standards

Bitcoin now has two competing fungible token standards. Both were born from the Ordinals ecosystem but work very differently.

BRC-20 (March 2023)

BRC-20 tokens use JSON text inscriptions to create and transfer fungible tokens. A deploy inscription defines the token (name, supply, limit per mint). Mint inscriptions create new tokens. Transfer inscriptions move tokens between addresses. Every operation requires a new inscription, making BRC-20 expensive and slow.

The key problem: each BRC-20 operation creates a new UTXO in Bitcoin's state. Millions of BRC-20 operations have created millions of tiny, economically useless UTXOs that bloat Bitcoin's UTXO set. This degrades network performance for everyone.

Runes (April 2024)

Runes use OP_RETURN outputs to encode fungible token data directly into Bitcoin transactions. No inscriptions needed. No junk UTXOs. Token balances attach to real UTXOs and move with standard Bitcoin transactions. Multiple rune transfers can occur in a single transaction.

Runes are technically superior: cheaper to transfer, cleaner chain state, and more efficient encoding. The SPUNK•BET rune is an example -- a gaming token that lives on Bitcoin's base layer with minimal chain impact.

Which Standard Wins?

New projects overwhelmingly choose Runes for fungible tokens. BRC-20 retains value in legacy tokens (ORDI, SATS) but the technical advantages of Runes make it the clear standard going forward. For ordinals (NFTs/inscriptions), the original Ordinals protocol remains the only option -- Runes are only for fungible tokens.

9. Understanding Ordinal Rarity

Casey Rodarmor defined a rarity system based on Bitcoin's periodic events. Not all satoshis are created equal.

Rarity Levels

RarityDefinitionFrequencyTotal Supply
CommonAny satoshi that isn't first in its blockEvery sat except firsts~2.1 quadrillion
UncommonFirst satoshi of each blockEvery ~10 minutes~6,929,999
RareFirst satoshi of each difficulty adjustment periodEvery ~2 weeks~3,437
EpicFirst satoshi of each halving epochEvery ~4 years~32
LegendaryFirst satoshi of each cycle (halving + difficulty adjustment coincide)Every ~24 years~5
MythicThe very first satoshi of the genesis blockOnce1

Rarity affects the value of the satoshi itself, independent of any inscription. An "uncommon" satoshi is worth more than a "common" one. Inscribing on a rare satoshi creates a doubly valuable artifact: the inscription content plus the satoshi's inherent rarity.

Collectors track "sat hunting" -- scanning their UTXOs for uncommon or rare satoshis that might have ended up in their wallet through normal Bitcoin transactions.

10. Earning Free Ordinals

You don't have to buy ordinals. Several platforms give them away as prizes, rewards, or promotional items.

Gaming Prizes

At spunk.bet, top players win real Bitcoin Ordinal inscriptions as prizes. These are genuine on-chain inscriptions from the SpunkArt collection, sent directly to your Bitcoin wallet. The process is simple:

  1. Claim 10,000 free SPUNK tokens from the daily faucet
  2. Play any of the 10 provably fair games (Crash, Dice, Mines, Plinko, HiLo, Coinflip, Keno, Tower, Wheel, Limbo)
  3. Qualify for ordinal prizes through tournaments, leaderboards, and special events
  4. Receive your ordinal directly to your Bitcoin wallet

No deposit required. No KYC. No wallet connection needed to play. When you win an ordinal, you provide your Bitcoin address and it's sent to you on-chain.

Community Airdrops

Many Ordinals projects airdrop inscriptions to holders, active community members, or social media participants. Follow collections on X, join Discord servers, and participate in community events to qualify.

Inscription Giveaways

Artists and projects regularly give away inscriptions to build community and awareness. These often require simple tasks: following on X, retweeting, joining a Discord, or minting a free companion piece.

Win Real Bitcoin Ordinals for Free

Play 10 provably fair games with free SPUNK tokens. Win actual on-chain ordinal inscriptions. No deposit. No KYC. Just play and win.

Play Now at SPUNK BET

11. Frequently Asked Questions

Can ordinals be deleted or censored?

No. Once an inscription is confirmed in a Bitcoin block, it is permanently part of the blockchain. No entity can delete, modify, or censor it. The data is replicated across thousands of Bitcoin nodes worldwide. As long as Bitcoin exists, the inscription exists. This is the strongest permanence guarantee in digital technology.

How much does it cost to inscribe an ordinal?

The cost depends on file size and current Bitcoin fee rates. A small image (50 KB) during low-fee periods might cost $2-5. The same image during high-fee periods could cost $30-50. Large files (300+ KB) during high-fee periods can cost $100+. Text inscriptions are the cheapest, often under $1 during low-fee periods. Use a fee estimator before inscribing.

What's the difference between ordinals and runes?

Ordinals are for non-fungible inscriptions (unique digital artifacts -- like NFTs). Runes are for fungible tokens (identical, interchangeable units -- like coins). They were created by the same developer but serve completely different purposes. You can't create a fungible token with ordinals, and you can't inscribe unique art with runes.

Can I view ordinals in any Bitcoin wallet?

No. Standard Bitcoin wallets see the satoshi value but not the inscription. You need an Ordinals-aware wallet (Xverse, Leather, UniSat, Magic Eden Wallet) to view, manage, and safely transfer inscriptions. Using a non-aware wallet risks accidentally spending inscribed satoshis as transaction fees.

Are Bitcoin Ordinals better than Ethereum NFTs?

They're different, not objectively better or worse. Ordinals offer superior permanence (fully on-chain data) and security (Bitcoin's hashrate). Ethereum NFTs offer better programmability (royalties, access control, smart contract composability). If you value permanence and decentralization, Ordinals win. If you need complex functionality, Ethereum NFTs are more capable.

Can I earn ordinals without buying them?

Yes. SPUNK BET at spunk.bet gives away real Bitcoin Ordinal inscriptions as prizes. Claim free SPUNK tokens daily and play to qualify. No purchase or deposit required. Community airdrops, giveaways, and social media contests from various Ordinals projects also distribute free inscriptions regularly.

What happens to my ordinals if the marketplace shuts down?

Nothing. Your ordinals live on the Bitcoin blockchain, not on any marketplace. Marketplaces are just interfaces for viewing and trading. If Magic Eden disappeared tomorrow, your inscriptions would still exist on-chain and be accessible through any other Ordinals explorer or marketplace. Your wallet's private key is the only thing that controls your ordinals.

Share on X