What is SATS (Ordinals) (SATS)?

By CMC AI
30 September 2025 03:29AM (UTC+0)

TLDR

SATS (Ordinals) is a Bitcoin-native token standard enabling fractional ownership and data inscription on individual satoshis (1 SATS = 0.00000001 BTC).

  1. Bitcoin micro-unit – Represents the smallest divisible unit of Bitcoin, facilitating microtransactions.

  2. Ordinals protocol integration – Allows embedding data (text, images) directly onto satoshis via Bitcoin’s blockchain.

  3. BRC-20 standard – Operates as a fungible token within Bitcoin’s ecosystem, distinct from Ethereum’s ERC-20.

Deep Dive

1. Purpose & Value Proposition

SATS leverages Bitcoin’s security to enable granular transactions (e.g., micropayments) and digital artifact creation. By inscribing data onto individual satoshis via the Ordinals protocol, it transforms Bitcoin’s base layer into a platform for unique assets, merging monetary utility with NFT-like functionality.

2. Technology & Architecture

Built on Bitcoin’s BRC-20 standard, SATS uses the Ordinals protocol to assign serial numbers to satoshis, making each traceable and programmable. Unlike Ethereum’s smart contracts, BRC-20 relies on Bitcoin’s decentralized ledger for token management, prioritizing security over Turing-complete flexibility. Recent upgrades like UniSat Wallet’s single-step transfers (July 2025) streamlined SATS transactions, reducing network strain.

3. Tokenomics & Governance

SATS has a fixed supply of 2.1 quadrillion tokens, mirroring Bitcoin’s 21 million cap. No inflation mechanism exists, aligning with Bitcoin’s scarcity model. Governance is community-driven, with protocol upgrades (e.g., BRC-20 efficiency improvements) proposed by developers and adopted via network consensus.

Conclusion

SATS reimagines Bitcoin’s foundational units as programmable assets, blending microtransactions with data storage. Its success hinges on balancing innovation with Bitcoin’s core principles—can it scale without compromising the network’s efficiency?

CMC AI can make mistakes. Not financial advice.