If you're new to the world of Ordinals, some of the initial terminology can be slightly confusing, potentially detracting from the simplicity of purchasing within the current infrastructure. In this article, we'll cover basics of ordinals and guide you on how to get started when buying your first Inscription (NFT on Bitcoin).
<h3 id="basics-of-ordinals">Basics of Ordinals</h3>
The system that makes up the Ordinals protocol is comprised of two main parts: Ordinal Theory, the numbering of individual Satoshis (0.00000001 of Bitcoin), and Inscriptions, the process of attaching data to these Ordinals. The Ordinals protocol to the Bitcoin network is simply bitcoin being sent from one wallet to another as a typical transaction, it’s only through the use of indexers that collect, parse, and store information from transactions, we can determine which jpg belongs with which satoshi.
<h3 id="wallets--marketplaces">Wallets &#x26; Marketplaces</h3>
With the advancement in wallets and indexers, we can now comfortably store and purchase ordinals with wallets deemed 'Ordinal Aware' such as Xverse and Leather. In both cases, these wallets store the Ordinal separate from your 'spending' bitcoin, minimizing the risk of accidentally sending an ordinal unintentionally. When connecting your wallet to a marketplace, it will scan that address and determine which assets you own.
<h3 id="how-to-purchase-your-first-ordinal">How to purchase your first Ordinal?</h3>
<h3 id="1-download-your-wallet">1. Download Your Wallet</h3>
<a href="https://www.xverse.app/">Visit Xverse App</a>
In this example, we'll be using the Xverse wallet to purchase and store our ordinal. Always confirm that you are downloading from the official Xverse website. Xverse is compatible with Chrome and also offers a mobile version.
<img src="/images/how-to-buy-your-first-ordinal/image1.png" alt="xverse">
<h3 id="2-fund-your-wallet">2. Fund Your Wallet</h3>
Your Xverse wallet will have three different receiving addresses. For funding your wallet, always send BTC to your 'Bitcoin' address. The ‘Ordinals’ address will be where the ordinal will be sent when purchasing your inscription.
<img src="/images/how-to-buy-your-first-ordinal/image2.png" alt="Screenshot 2023-10-23 130940.png">
<h3 id="3-connect-to-a-marketplace">3. Connect to a Marketplace</h3>
https://magiceden.io/ordinals/
In this example, we’ll be using Magic Eden to complete the purchase process. In the top right corner, select 'Connect Wallet.' If this is your first time connecting, you will be prompted to sign and prepare your wallet. Always ensure that you are connecting to the official website.
<img src="/images/how-to-buy-your-first-ordinal/image3.png" alt="Untitled">
<h3 id="4-make-your-purchase">4. Make Your Purchase</h3>
Once you've found the Ordinal you like, select 'Buy Now.' At this point your Xverse wallet will pop-up and prompt you to confirm the transaction. Always double check the items being transferred and received. Once you select ‘Buy Now’ and the transaction is pending, and no one else can purchase that item.
<img src="/images/how-to-buy-your-first-ordinal/image4.png" alt="Untitled">
<img src="/images/how-to-buy-your-first-ordinal/image5.png" alt="Untitled">
<h3 id="5-confirm-transaction-has-completed">5. Confirm Transaction Has Completed</h3>
Transactions, including transfers and purchases, typically take around 10 minutes to finalize on Bitcoin. However, this duration isn't always consistent and can vary significantly.
<img src="/images/how-to-buy-your-first-ordinal/image6.png" alt="Untitled">
You can track the progress of your transaction on <a href="http://mempool.space">mempool.space</a>.
The arrow indicates where your transaction is in the ‘queue.’ Once approved, the red ‘Unconfirmed’ will turn to a green ‘Confirmed.’
<img src="/images/how-to-buy-your-first-ordinal/image7.png" alt="Untitled">
Congratulations! You’ve now purchased your first Inscribed Ordinal!
<h3 id="6-view-your-ordinals">6. View Your Ordinal/s</h3>
You have several ways to view your recently purchased ordinals. The first method is within the Xverse wallet using the second tab. The second is through the connected marketplace; for Magic Eden, select your address in the top right corner and then choose 'My Items.' Lastly, you can use websites like <a href="http://ord.io/">ord.io</a> and paste your address to see the items you hold.
<img src="/images/how-to-buy-your-first-ordinal/image8.png" alt="Untitled">
<img src="/images/how-to-buy-your-first-ordinal/image9.png" alt="Untitled">
Thanks for reading, and we hope that this has made your purchasing experience a little less daunting.

Step-by-step guide on buying your first Ordinal. Unravel the world of Bitcoin NFTs from understanding Ordinal Theory to successfully purchasing inscriptions using Xverse and marketplaces like Magic Eden. Dive into the future of digital ownership on Bitcoin.

Basics of Ordinals

Wallets & Marketplaces

How to purchase your first Ordinal?

1. Download Your Wallet

2. Fund Your Wallet

3. Connect to a Marketplace

4. Make Your Purchase

5. Confirm Transaction Has Completed

6. View Your Ordinal/s

How to Buy Your First Ordinal!

Ordinal Theory is the scheme for serializing individual satoshis, the smallest denomination of Bitcoin (0.00000001 Bitcoin). This process assigns ‘ordinal numbers’ giving us the ability to track and trace individual satoshis from their time of creation.
Before we go into the weeds of Ordinal Theory, it’s important to know two things about bitcoin.
<ol>
<li>Every successful transaction is recorded in blocks and written to an immutable ledger called the blockchain. Typically this chain of records is updated every 10m with new transactions.</li>
<li>There are no account balances on Bitcoin, instead it uses unspent transaction output (UTXO) model for keeping track of funds. In short, bitcoin doesn’t keep track of your ‘account’ balance, but instead you have UTXOs that are ‘permission slips’ to spend the bitcoin sent to you.</li>
</ol>
<h3 id="understanding-ordinal-numbers">Understanding Ordinal Numbers</h3>
The primary purpose of ordinal numbers stems from the creator's goal of storing digital assets (NFTs) on Bitcoin. While Bitcoin inherently treats all bitcoins as identical, fungible assets without serialization, the creation of Ordinal Theory introduced a method to track and trace satoshis using a first-in, first-out model based on transaction history. ordinal numbers offer a reference point to what is stored on-chain, streamlining the tracking of ownership and facilitating transfers.
Whenever a Bitcoin transaction occurs, it comprises a set of inputs and outputs. Ownership of an Ordinal Number is tracked from the inputs to the outputs of the transaction. The Ord client, software that underpins the Ordinal Protocol, indexes these transactions and monitors network activity. Your inscriptions (the data stored on-chain), remains stationary at their original creation point; only their creation reference point (the ordinal number) is tracked from input to output. For example, if you create an Inscription stored on-chain on Jan 1, 2023, that Inscription's data will always reside in the transaction from that date.
Drawing an analogy, it's akin to owning land (your inscription). Title papers (Ordinal Number) validate ownership, and with your consent, the title can be transferred (outputs), granting someone else ownership of the land. Yet, the land remains stationary.
Ordinal numbers are searchable on <a href="http://ordinals.com/">Ordinals.com</a> and presented in five formats: Integer notation based on mining order (ordinal number), Decimal notation displaying block height (referring to the position or the number of a specific block within a blockchain) and satoshi offset, Degree notation representing an ordinal numbers rarity at a glance, Percentile notation indicating a satoshi's position relative to Bitcoin's supply, and Name, encoded using characters a-z. The introduction of numbering and naming establishes rarity, as each number and name is unique.
<img src="/images/what-is-ordinal-theory/satnumnbers.png" alt="Sat Number Example">
<h3 id="rarity">Rarity</h3>
With the creation of Ordinal Theory, Casey Rodarmor not only conceptualized numbering but also suggested a collector's guide in sync with Bitcoin's periodic events.
These events, and their corresponding rarity levels, are:
New Block (Uncommon): Though a new block is mined roughly every 10 minutes, the first satoshi of each block is deemed ‘Uncommon’. Total supply: 6,929,999
Difficulty Adjustments (Rare): Approximately every two weeks, or after 2016 blocks, the Bitcoin network modifies its difficulty target. The first satoshi of each adjustment period is labeled ‘Rare’. Total supply: 3437
Halvings (Epic): Roughly every four years, or after 210,000 blocks, the quantity of new sats in each block is halved. The first satoshi of each halving is labeled ‘Epic’. Total supply: 32
Cycles and Conjunctions (Legendary): Every six halvings, a conjunction event synchronizes the halving with the difficulty adjustment. The first satoshi of each conjunction event is labeled ‘Legendary’. Total supply: 5
Genesis Block (Mythic): The pinnacle of rarity is the genesis block's first satoshi, classified as Mythic. The term ‘Mythic’ is symbolic, as it remains unattainable. Satoshi Nakamoto's original Bitcoin code design renders the 50 BTC from the genesis block unspendable due to the absence of a preceding transaction to reference. This unique trait ensures the reward is eternally locked. Total supply: 1
Outside these events, all other satoshis are labeled ‘Common.’ Total supply: 2.1 quadrillion.
While this widely accepted rarity scheme appeals to collectors, there's also the introduction of "Exotics." These are satoshis with subjective rarity beyond Rodarmor's original classification, such as unique numbering or naming patterns.
Exotic satoshi examples include:
Block 9: Sats from Bitcoin's inaugural transaction
Pizza Transaction: Sats from the notorious 10,000 BTC pizza transaction.
Palindrome: Numbers identical when read forwards and backward.
*Note: Rarity is subjective, and alternative rarity forms can emerge.
<h3 id="satoshi-names">Satoshi Names</h3>
Satoshi names are derived from Ordinal Numbers through a Base26 (alphabet) conversion. While Base10, our standard numbering system, uses digits (0-9), Base26 employs letters, where A=1, B=2, ... Z=26. It's crucial to understand that sat names, unlike Ordinal Numbers, are assigned in reverse creation order. This reverse naming was chosen because sequential naming would have limited names from 'a' to 'pdulurh' to the unspendable genesis block, making shorter names unattainable.
Sat number 0 (first) = 'nvtdijuwxlp'
Sat number 2099999997689999 (last) = 'a'
The name 'a' is projected as the final creation, anticipated for 2140-02-09 21:02:48 UTC, coinciding with the last bitcoin's issuance.
<h3 id="the-specification">The Specification</h3>
To understand how the process of assigning and tracking ordinal numbers is completed we can divide the specification code for Ordinal Theory into five sections, each representing a step in the process required for this scheme to work. This spec can be found in the <a href="https://github.com/ordinals/ord/blob/master/bip.mediawiki">Bitcoin Improvement Proposal (BIP)</a> as written by the creator Casey Rodarmor.
<img src="/images/what-is-ordinal-theory/Ordinal-number-assignment-light.png" alt="Ordinal number assignment representation">
Visual representation of Ordinal Number assignment specification.
<ol>
<li>Bitcoin Subsidy</li>
</ol>
Bitcoin miners receive rewards known as "subsidies" for validating transactions and securing the network. The <code>subsidy</code> function calculates this reward, which decreases over time (approximately every four years) in an event known as "halving." This function determines the current reward based on the total number of blocks already on the blockchain (the block height).
<pre><code class="language-jsx">def subsidy(height):
return 50 * 100_000_000 >> height // 210_000
</code></pre>
<ol>
<li>First Ordinal</li>
</ol>
The <code>first_ordinal</code> function calculates the ordinal number for the first satoshi in a new block's subsidy. It adds up all subsidies from previous blocks to determine where the numbering should start for the newly mined satoshis. Essentially, it's saying, "Given all the Bitcoins mined so far, the numbering for the new satoshis in this block starts at X."
<pre><code class="language-jsx">def first_ordinal(height):
 start = 0
 for height in range(height):
 start += subsidy(height)
 return start
</code></pre>
<ol>
<li>Assigning Ordinal Numbers In Each Block</li>
</ol>
With the starting ordinal number known, the <code>assign_ordinals</code> function begins numbering the new satoshis in the block's subsidy. These ordinal numbers are specific to the block's "coinbase" transaction, which is the transaction containing the miner's reward.
<pre><code class="language-jsx">def assign_ordinals(block):
 first = first_ordinal(block.height)
 last = first + subsidy(block.height)
 coinbase_ordinals = list(range(first, last))
</code></pre>
<ol>
<li>Tracking Transactions</li>
</ol>
Blocks contain many transactions. These transactions represent the transfer of Bitcoin between parties. The code assigns ordinal numbers to the satoshis in each transaction, ensuring each unit of Bitcoin can be uniquely identified and tracked. It's like giving each dollar bill a unique serial number.
<pre><code class="language-jsx">for transaction in block.transactions[1:]:
 ordinals = []
 for input in transaction.inputs:
 ordinals.extend(input.ordinals)

 for output in transaction.outputs:
 output.ordinals = ordinals[:output.value]
 del ordinals[:output.value]
</code></pre>
<ol>
<li>Handling the Coinbase Transaction</li>
</ol>
Finally, the code ensures that every satoshi in the coinbase transaction is accounted for. It assigns the remaining ordinal numbers to these satoshis. This process is crucial for maintaining the complete accountability and traceability of every single satoshi generated.
<pre><code class="language-jsx">coinbase_ordinals.extend(ordinals)

 for output in block.transaction[0].outputs:
 output.ordinals = coinbase_ordinals[:output.value]
 del coinbase_ordinals[:output.value]
</code></pre>
<h3 id="summary">Summary</h3>
The essence of Ordinal Theory is to bring a new dimension to Bitcoin, allowing for the serialization of its smallest unit, a satoshi. This serialization not only enhances the traceability of transactions but also introduces a unique aspect of rarity and collectibility to the Bitcoin ecosystem - are you holding any ‘rare’ sats in your wallet? What was once fungible has now been imbued with a non-fungible characteristic.

Ordinal Theory is the scheme for serializing individual satoshis, the smallest denomination of Bitcoin (0.00000001 Bitcoin). This process assigns ‘ordinal numbers’ giving us the ability to track and trace individual satoshis from their time of creation.

Bitcoin Ordinals

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