Bitcoin Inscriptions are the process of embedding data like images, texts, or videos onto individual Satoshis, enabling the creation of Bitcoin-native digital assets with the blockchain’s inherent security and immutability.

Understanding Bitcoin Inscriptions

Imagine a tiny mark, a digital signature of sorts, etched forever into the very fabric of a Bitcoin Satoshi. This is the essence of a Bitcoin Inscription. It’s a process that embeds data—be it text, images, or even videos—onto the smallest unit of Bitcoin. But how does this magic happen? Let’s uncover the layers.

What Are Bitcoin Ordinal Inscriptions?

Ordinary items bear inscriptions as a mark of identity or ownership. Similarly, in the crypto realm, inscriptions serve as a digital watermark. Bitcoin Inscriptions, or Ordinal Inscriptions, are unique identifiers written onto the blockchain. They transform each Satoshi into a canvas for digital artifacts.

How Do Ordinal Inscriptions Work?

Bitcoin’s core was not designed for such complexity. Yet, with the taproot upgrade, the game changed. Now, data can flow freely, attaching to transactions like a note to a pigeon’s leg. Each Satoshi, numbered from its birth in a block, can carry a payload of information. This is done through an ‘envelope’, a non-executing Bitcoin script, and the SegWit and Taproot innovations. Up to 4MB of data can ride along with each transaction, enjoying Bitcoin’s robust security and scarcity.

Through this innovation, the Bitcoin blockchain becomes more than a ledger. It’s a vault of digital treasures, each Satoshi a potential masterpiece or a message in a bottle, cast into the digital sea of blockchain.