What is SATS (Ordinals) (SATS)?

Deep Dive

1. Purpose & value proposition

SATS leverages Bitcoin’s security to tokenize satoshis, enabling two core functions:
- Microtransactions: Makes Bitcoin practical for small-value exchanges (e.g., tipping, pay-per-use services).
- Digital artifacts: Inscriptions turn satoshis into unique collectibles or data carriers (CoinMarketCap).

2. Technology & architecture

Built on the Ordinals protocol, SATS assigns serial numbers to satoshis, letting users attach metadata (like NFTs) without sidechains. Key mechanics:
- BRC-20 standard: Tokenizes satoshis using JSON-based inscriptions, similar to Ethereum’s ERC-20 but native to Bitcoin.
- Decentralized ledger: Inherits Bitcoin’s Proof-of-Work security, with inscriptions stored directly on-chain.

3. Key differentiators

• Bitcoin-native: Avoids Layer-2 networks, reducing reliance on external protocols.
• Fixed supply: 2.1 quadrillion SATS mirrors Bitcoin’s 21M cap, ensuring scarcity alignment.

Conclusion

SATS reimagines Bitcoin’s smallest unit as a programmable asset, merging fractional BTC utility with on-chain data storage. While its BRC-20 framework simplifies tokenization, can it scale without congesting Bitcoin’s base layer?