OXBT (Ordinals)OXBT to ETH

What Are Ordinals?

It is a way of creating non-fungible tokens commonly known as NFTs on top of Bitcoin. It is a protocol that allows users to add various information like text, images, audio or videos to satoshi which is the smallest group of Bitcoin. It can be used to generate tokens with special features which can be exchanged on the Bitcoin network. It is the modern way of creating NFTs, meme coins and other digital assets on the Bitcoin network. Even though the main aim of this protocol is to create NFTs, it can also be used for many different applications. ORDI is the native token of this protocol that is used for governance and by using NFT’s potentials this coin can have a wide range of use cases.

How Do Bitcoin Ordinals Work?

It is a system, a protocol that is used to attach additional data to a single satoshi. This protocol has transformed the way digital assets are observed on the Bitcoin blockchain . When the Satoshi gets analyzed by this protocol, it enables users to inscribe on at satoshi or commonly known as sat. The users can inscribe the sat with arbitrary data to give it its special features known as digital artifact. When the process of inscription takes place it is connected to a unique type of taproot code known as script-path. To build and communicate with inscriptions, it needs an ordinal-enabled wallet and a full running Bitcoin node. BRC-20 token is used by this protocol to enable users to create fungible tokens.

What Are the Potential Use Cases for Ordinals?

This protocol has a wide range of use cases which are spread across various industries. This is mainly because of its potential to inscribe information on a single satoshi and change it into a digital asset same as NFT.  This also helps in opening some new events for digital ownership and asset transfer into the cryptocurrency ecosystem.  This protocol is capable of creating digital tokens without the need of any different blockchain or token system. 

Apart from this this protocol can also be used for some other use cases which are as follows: .

• Supply Chain Management 

In supply chain management this protocol can be used for tracking the location of the goods.

• Identity Verification 

Due to its permanent Immutable records it can be used for verifying identities. 

What Are the Advantages of Ordinal Coins?

Users can enjoy many different kinds of benefits using this token. Some of these rewards are detailed below:

• NFT and Token Modification 

It can change the data like text or images found on the Bitcoin network into NFTs and tokens. This helps in digital representation of different types of assets. 

• Different Use of Bitcoin 

This protocol enhances the usage areas of Bitcoin by the ability of NFTs that can add basic structure of Bitcoin. 

• Special Cryptocurrency 

This coin has gained traction from users because of its unique developed protocol. This development has proved to be an fascinating advantage from the  investors and users point of view.

What Are the Disadvantages and Risks Associated With Ordinals Coins?

Just as it had some unique advantages, this coin even have to face certain unavoidable risks which are a part and parcel of every digital coin in the cryptoworld. These demerits of this digital coin are as follows: . 

• Competition 

Competition is present in every form of investment. However, it is more prominent in the cryptoworld. This is because new digital coins are introduced every other day. Not only that, there are also some vintage coins who have made a stable place in the crypto ecosystem. Every coin has to lock horns with every digital currency in the cryptocurrency market to prove its worth and stay stable which affect the fate of the coin. 

• Volatility

Uncertainty of prices is a hallmark of the cryptocurrency market. As time goes by, a digital coin's value may see a commendable rise or a degrading fall. It is very difficult to predict such price fluctuation. This makes crypto coins a risky investment

• Regulatory Uncertainty 

The regulatory environment surrounding cryptocurrencies and non-fiat currencies is going through a continuous process of change. Every country has a completely different view of the cryptoworld. On the top of it, there is not a single and uniform regulatory body for these coins. So the rules and regulations keep changing. In light of this shifting environment, it is difficult for cryptocurrencies to adjust to the new circumstances.

Future Plans of Ordinal Coin

This coin has some unique goals to achieve. It can prove to be a good advantage for Bitcoin in the future. It has the potential to achieve success in the future. There are many use cases and the development team is working continuously to diversify its use cases to many different industries. This coin has a very promising future.

Conclusion 

We have tried to sum up everything about Ordinal coin in this article. However, It is necessary to consider the risks involved with cryptocurrencies before investments. As discussed above, this coin has a bright future. It has a number of potential use cases. It has the ability to change the NFTs and blockchain technology. Overall this can prove to be a good investment decision.