Crypto Terms:
Letter I
What are Inscriptions on Bitcoin?
Meaning:
Inscriptions on Bitcoin -
digital entries that come in the form of metadata encoded on a satoshi, the smallest Bitcoin unit.
Let's find out Inscriptions on Bitcoin meaning, definition in crypto, what are Inscriptions on Bitcoin, and all other detailed facts.
An inscription is something that is inscribed on an item, for example, a drawing inscribed on stone. When it comes to inscriptions on Bitcoin, it kind of is the same, as it refers to arbitrary content inscribed on a satoshi. It can be any type of digital content, including text, images, and so on.
Inscriptions reside on the Bitcoin network as individual digital entries, or so-called digital artifacts. They are an extension of the network because they do not require a sidechain or a creation of a new token. However, do note that the block space limitation for each satoshi places a 4 MB size limit on inscriptions.
The Ordinals protocol, a satoshi numbering system, makes it possible to employ inscriptions. It assigns a sequential number to each satoshi as it is mined and moved from transaction inputs to transaction outputs. These numbers act as satoshi identifiers.
Now, why would one wish to inscribe something on a satoshi? Well, there are many reasons. An inscription can be used to add information to a transaction, such as a note for the recipient or even the attachment of a file.
Moreover, since inscriptions on Bitcoin act as unique digital artifacts that can be collected or traded, they can also be used to create Bitcoin-based NFTs. Though, inscriptions are essentially Bitcoin transactions, which makes them more immutable and decentralized compared to traditional NFTs that require a separate infrastructure and tokens.
However, their usage doesn't end here. In March 2023, a Twitter user that goes by the name domo (@domodata) proposed a new experimental token standard that allows the creation of fungible tokens on the Bitcoin network - BRC-20. The inscription of JSON (JavaScript Object Notation) data is used to create these tokens.
cryptocurrency world as well but it is less heavily regulated than it is with the stock market. If a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-whale/">whale announces his intention to <strong>sell a large number of his holdings<\/strong>, for example, it can be interpreted as an indication that the token's price would decrease. Though it is not likely that he’ll be accused of insider trading.<\/p>","definition":"buying or selling stocks while possessing undisclosed private information about the stock.","status":"published","meta_title":"What is Insider Trading? Definition & Meaning | Crypto Wiki","meta_description":"Insider Trading meaning: Insider Trading - buying or selling stocks while possessing undisclosed private information about the stock.","meta_keywords":null}"
:prev-section="{"id":927,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Charles_Hoskinson#IOHK_&_Cardano","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2023-12-13T05:19:13.000000Z","slug":"what-is-input-output-hong-kong-iohk","title":"What is Input-Output Hong Kong (IOHK)?","section":"I","keyword":"Input-Output Hong Kong (IOHK)","content":"<p><strong>Input-Output Hong Kong (IOHK)<\/strong>, now referred to as Input-Output Global, is an engineering and research company that deals in software development. Its main purpose is to help companies create digital infrastructures and systems that are based on blockchain technology.<\/p>\n<p>IOHK provides services for anyone who wants to implement <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-distributed-ledger/">distributed ledgers<\/strong><\/a> or <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrencies into their organization. Their main clients are government agencies, educational institutions, and businesses.<\/p>\n<p>Charles Hoskinson and Jeremy Wood, the same men who were part of the developer team behind <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum, co-founded IOHK. The company began its work in 2015 and currently has over 400 employees from around the world. IOHK prides itself on its culturally diverse and skilled teams working at the company.<\/p>\n<p>Developers at IOHK believe that blockchains and cryptocurrencies can and should be used by everyone. Therefore, their projects and tools are <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-open-source/">open source<\/strong><\/a>. <\/p>\n<p>IOHK team built their own blockchain platform called Cardano. However, most of the credit for developing this cryptocurrency goes to Charles Hoskinson. <\/p>\n<p>In essence, Cardano is a platform based on layered blockchain technology that provides a foundation for anyone who wants to utilize their research and engineering capabilities to bring forward innovation. Cardano offers a variety of tools and programs to make the process easier. It’s also easy to scale due to the technology behind it.<\/p>\n<p><strong>Cardano is considered to be a part of third-generation cryptocurrencies since it offers solutions that are greater than the previous protocols<\/strong>. The team of developers behind Cardano took great care to build the platform in accordance with the standards of the academic and commercial software development fields. <\/p>\n<p>What makes Cardano stand out from other platforms is that it was developed by applying a research and science first approach.<\/p>\n<p>One of the key properties of this platform is that it’s able to evolve along a consensus achieved by a democratic governance system.<\/p>\n<p>Additionally, the treasury system implemented within Cardano allows funding the platform in sustainable ways. This allows the company to take big steps forward when it comes to bettering the platform.<\/p>","definition":"is a company that develops platforms based on blockchain technology.","status":"published","meta_title":"What is Input-Output Hong Kong (IOHK)? Definition & Meaning | Crypto Wiki","meta_description":"Input-Output Hong Kong (IOHK) meaning: Input-Output Hong Kong (IOHK) - is a company that develops platforms based on blockchain technology.","meta_keywords":null}"
:model="{"id":9196,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Bitcoin","level":"easy","author_id":4,"created_at":"2023-07-18T13:35:35.000000Z","updated_at":"2023-12-04T08:16:10.000000Z","slug":"what-are-inscriptions-on-bitcoin","title":"What are Inscriptions on Bitcoin?","section":"I","keyword":"Inscriptions on Bitcoin","content":"<p>An inscription is something that is inscribed on an item, for example, a drawing inscribed on stone. When it comes to inscriptions on <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin, it kind of is the same, as it refers to <strong>arbitrary content inscribed on a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-satoshi-sats/">satoshi. It can be any type of digital content, including text, images, and so on.<\/p>\n<p>Inscriptions reside on the Bitcoin network as <strong>individual digital entries, or so-called digital artifacts<\/strong>. They are an extension of the network because they do not require a sidechain or a creation of a new token. However, do note that the block space limitation for each satoshi places a <strong>4 MB size limit on inscriptions<\/strong>.<\/p>\n<p><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-are-ordinals/">The Ordinals protocol<\/strong><\/a>, a satoshi numbering system, makes it possible to employ inscriptions. It assigns a sequential number to each satoshi as it is mined and moved from transaction inputs to transaction outputs. These numbers act as satoshi identifiers.<\/p>\n<p>Now, why would one wish to inscribe something on a satoshi? Well, there are many reasons. An inscription can be used to <strong>add information to a transaction<\/strong>, such as a note for the recipient or even the attachment of a file.<\/p>\n<p>Moreover, since inscriptions on Bitcoin act as unique digital artifacts that can be collected or traded, they can also be used to <strong>create Bitcoin-based NFTs<\/strong>. Though, inscriptions are essentially Bitcoin transactions, which makes them more immutable and decentralized compared to traditional <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFTs that require a separate infrastructure and tokens.<\/p>\n<p>However, their usage doesn't end here. In March 2023, a Twitter user that goes by the name domo (@domodata) proposed a <strong>new experimental<\/strong> <strong>token standard that allows the creation of fungible tokens on the Bitcoin network<\/strong> - <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-brc-20/">BRC-20. The inscription of JSON (JavaScript Object Notation) data is used to create these tokens.<\/p>","definition":"digital entries that come in the form of metadata encoded on a satoshi, the smallest Bitcoin unit.","status":"published","meta_title":"What are Inscriptions on Bitcoin? Definition & Meaning | Crypto Wiki","meta_description":"Inscriptions on Bitcoin meaning: Inscriptions on Bitcoin - digital entries that come in the form of metadata encoded on a satoshi, the smallest Bitcoin unit.","meta_keywords":null,"author":{"id":4,"user_id":5,"created_at":"2023-05-10T11:56:23.000000Z","updated_at":"2023-05-11T07:19:57.000000Z","title":"Lead Crypto Researcher","slug":"ain-n-lead-crypto-researcher","description":"<p>Ain is the Lead Crypto Researcher. Her vast experience with crypto and blockchain tech-related content allows her to identify the key pieces of information that should be presented to the learner, and ensure the validity of the gathered data.<\/p>\n<p>With a degree in New Media studies, she has developed an extensive list of techniques to educate people via new, research-proven study models based on deduction and long-term human memory.<\/p>\n<p>Ain approaches everything with unequivocal attention to detail. Her main goals are to erase the ambiguity surrounding many Web3 concepts, and to guide content writers in presenting difficult crypto-related concepts in an easy-to-understand manner.<\/p>\n<p>Even though content strategy is her main passion, Ain also enjoys reading high-fantasy books and watching superhero movies.<\/p>","user":{"id":5,"first_name":"Ain","last_name":"N.","email":"ain@bitdegree.org","email_sanitized":"ain@bitdegree.org","email_verified_at":null,"must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2642,"referral_token":"qjnrnAiacl3sNs9U","referred_by":null,"created_at":"2023-05-04T10:07:43.000000Z","updated_at":"2023-12-11T09:14:14.000000Z","full_name":"Ain N."}}}"
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current-chapter="I"
current-section="what-are-inscriptions-on-bitcoin">
