## Bitcoin Inscriptions: From Small Data to Digital Revolution

In 2023, the Ordinals protocol changed the way people view Bitcoin. Inscription is metadata—a piece of information in the form of text, images, or code—that is added directly to Bitcoin transactions and permanently stored on the blockchain. This simple concept turns out to open up great opportunities to create digital assets on a network that was originally focused solely on value transfer.

## How Does Inscription Work in Bitcoin?

When users send Bitcoin transactions, they can attach inscriptions to satoshi—the smallest unit of Bitcoin. This data becomes an integral part of the decentralized ledger. A numbering system called Ordinal Theory allows each satoshi to be uniquely numbered based on the order of mining, creating "digital artifacts" that are non-fungible.

The result is ordinal: satoshis that have been numbered and have inscriptions. It's not just about metadata, but about the ability to create something truly unique and inseparable from the Bitcoin blockchain.

## BRC-20: New Token Standard for Bitcoin

From the inscription was born BRC-20—a token standard that uses the Ordinals protocol to create and transfer fungible tokens on Bitcoin. Each BRC-20 token is essentially an inscription on satoshi. This standard leverages the simplicity, permanence, and security that are the main advantages of Bitcoin.

## Distinguishing Three Key Concepts

These three terms are often confusing, but they have different roles:

- **Inscription is** the foundation: metadata added to the Bitcoin unit
- **Ordinals** is a protocol that assigns numbers to satoshis using Ordinal Theory.
- **BRC-20** is a practical application of inscriptions—standards for creating transferable tokens.

In other words, inscriptions are the raw materials, ordinals are the system that organizes them, and BRC-20 is the finished product that is created.

## Opportunities and Challenges in the Field

Inscription has opened the door for NFTs, digital art, and collectibles on Bitcoin—enriching an ecosystem that was previously limited to financial transactions. However, not everyone agrees. Some in the Bitcoin community are concerned that this feature strays from its original philosophy as a simple payment system. They worry about competition for block space leading to increased network fees.

On the other hand, supporters see this as a natural evolution—Bitcoin is not only for value transfer but also a medium for expression and a digital asset.

## Inscription Beyond Bitcoin

This trend does not stop at Bitcoin. Ethereum, Avalanche, and other blockchains have already adopted the concept of inscription to enhance their network flexibility.

## Conclusion

Inscriptions are an innovation that transforms the way we view blockchain. Through Ordinals and BRC-20, Bitcoin has evolved from merely a payment tool into a platform for unique and valuable digital assets. Although controversy still exists, its positive impact on the blockchain ecosystem cannot be denied.