Ordinal Inscriptions vs NFTs: How Are They Different?

How much would you pay to own an NFT immutably and permanently recorded on the world’s largest and probably most secure blockchain — the Bitcoin (BTC) network? This question might force many NFT enthusiasts to pause and think a bit. But one person didn’t hesitate much before shelling out $450,000 in bitcoins in December 2023 for the right to own an Ordinal inscription — a unique digital artifact based on Bitcoin’s own implementation of NFT functionality. As of mid-February 2024, this stands as the most expensive Ordinal inscription sale in the brief history of Bitcoin NFTs.

Ordinal inscriptions, which allow you to attach pieces of data or media to individual satoshis, the smallest units in a BTC coin, have made it possible for creators to own unique, non-fungible assets on the Bitcoin chain. And unlike standard NFTs, which are typically based on blockchains like Ethereum (ETH), Solana (SOL) and Avalanche (AVAX), Ordinal inscriptions/Bitcoin NFTs don’t require any smart contracts to operate. 

Since their introduction in early 2023, Ordinal inscriptions have attracted both considerable interest and controversy in the Bitcoin community. However, one thing is certain — this niche is growing by leaps and bounds, and it may soon become a serious rival to the standard, smart contract–powered NFT ecosystem. 

What attracts people to Ordinal inscriptions on Bitcoin? And how are they different from NFTs on other blockchains? In this article, we’ll take a look at both Ordinal inscription technology and standard NFTs, and detail their key differences.

Key Takeaways: