### What is SATS (Ordinals)?

SATS (Ordinals) is a digital asset utilizing the BRC-20 token standard on the Bitcoin network. It functions through the Ordinals protocol, which allows for the inscription of data directly onto the Bitcoin blockchain. This enables the creation of digital artifacts by utilizing individual satoshis, the smallest unit of Bitcoin, and extending Bitcoin's functionality beyond simple transactions.

### How does SATS (Ordinals) work?

SATS (Ordinals) operates using the Bitcoin blockchain through the Ordinals protocol. Each satoshi is assigned a unique serial number based on its mining and transaction order. This allows for the tracking and transferring of individual sats, making it possible to create and manage digital assets like NFTs directly on Bitcoin. The protocol is compatible with and can be integrated with smart contracts, expanding the potential use cases and controlled functionality.

### What are the potential use cases for SATS (Ordinals)?

SATS (Ordinals) has several use cases, including:

- **Digital Art and Collectibles:** Artists can create unique digital artifacts inscribed on satoshis.
- **On-Chain Token Issuance:** Through the BRC-20 standard, projects can issue tokens entirely on-chain.
- **Gaming:** Utilised for in-game items in a decentralised manner.
- **Data Storage:** Records diverse data types like scientific information using Bitcoin’s immutability.
- **Financial Applications:** Facilitates global transactions and gold trading with the Gold on Sats token.
- **Payment Systems and Intellectual Property:** Used for efficient payment systems and tracking rights.

### What is the history of SATS (Ordinals)?

The SATS (Ordinals) protocol was conceptualised from various early discussions and fully launched on the Bitcoin mainnet by Casey Rodarmor in January 2023. It stemmed from earlier ideas of numbering satoshis, which evolved with major Bitcoin updates like SegWit and Taproot. These developments enabled data inscription on the Bitcoin blockchain, impacting the creation of NFTs and tokens within the Bitcoin network. Major milestones include the BRC-20 token standard introduction in March 2023 and widespread exchange listings, marking the protocol's significant adoption and growth within the crypto ecosystem.

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