# Inscriptions

### Ordinals and Inscriptions

* The Ordinals protocol introduced a method to identify and track individual satoshis on the Bitcoin blockchain. It does this by assigning a sequential number, called an ordinal number, to every satoshi based on its position in the order of all satoshis ever mined. This makes each satoshi uniquely identifiable.
* **Inscription Process**: An inscription is created when data is added to a transaction that transfers or mints a satoshi with a specific ordinal number. This data is embedded in the witness part of a transaction output and becomes a permanent part of the blockchain once the transaction is confirmed. The satoshi carrying this data is then considered "inscribed."

### Characteristics of Inscriptions

* **Permanence**: Once data is inscribed onto a satoshi, it becomes an immutable part of the Bitcoin blockchain. This ensures the longevity and tamper-proof nature of the inscribed data, similar to any other transaction on the blockchain.
* **Uniqueness**: Each inscribed satoshi is unique, thanks to its ordinal number. This allows for the creation and ownership of digital artifacts that can be as unique and valuable as physical collectibles.
* **Versatility**: The type of data that can be inscribed is highly versatile. It can range from simple text messages to complex images or even executable code such as generative art.&#x20;

### Implications and Uses

* **Digital Art**: One of the most popular uses of Bitcoin inscriptions is the creation of digital collectibles. These can be anything from digital artwork to unique texts, creating a new form of collectible that leverages the security and immutability of the Bitcoin blockchain.
* **Ownership and Transfer**: Just like any other Bitcoin transaction, the ownership of an inscribed satoshi can be transferred from one person to another. This allows for the buying, selling, and trading of digital artifacts.


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