Bitcoin Ordinals Guide 2026: NFTs on Bitcoin and the Runes Protocol
Bitcoin Ordinals allow inscribing arbitrary data on individual satoshis, creating Bitcoin-native NFTs. This guide covers how Ordinals work, the Runes fungible token protocol, and the ecosystem.
Bitcoin Ordinals, launched by Casey Rodarmor in January 2023, enable inscribing arbitrary data on individual satoshis using Bitcoin's Taproot transaction capacity. This created Bitcoin-native digital artifacts (effectively NFTs) without smart contracts — using Bitcoin's existing capabilities.
How Ordinals Work
- Ordinal theory: each satoshi is numbered in order of mining (ordinal number)
- Inscriptions: data (image, text, code) stored in transaction witness data
- No smart contract: just Bitcoin transactions using existing Taproot capabilities
- Wallets: Ord, Sparrow Wallet, Xverse support Ordinal inscription viewing and trading
Runes: Fungible Tokens on Bitcoin
Runes is the fungible token protocol launched by Casey Rodarmor in April 2024 (coinciding with the Bitcoin halving). Unlike BRC-20 (which used inefficient Ordinal inscriptions for tokens), Runes uses an efficient UTXO model native to Bitcoin. Runes created the first wave of viable fungible token issuance on Bitcoin without wrapping.
The Bitcoin NFT and Token Ecosystem
- Magic Eden: dominant NFT marketplace for Ordinals (Bitcoin + Solana)
- Unisat: Bitcoin-native wallet and marketplace for Ordinals and Runes
- OKX Wallet: major CEX-backed wallet with Ordinals trading
- Note: the ecosystem is early and less liquid than Ethereum or Solana NFT markets