What is SATS (Ordinals) (SATS)?

Deep Dive

1. Purpose & value proposition

SATS leverages Bitcoin’s security to tokenize satoshis, transforming them into programmable digital artifacts. Unlike ERC-20 tokens on Ethereum, SATS inherits Bitcoin’s decentralized architecture while enabling use cases like NFT-like collectibles (“digital artifacts”) and microtransactions. The Ordinals protocol 1 allows users to inscribe unique data (e.g., text, images) onto individual satoshis, creating scarcity and tradability for otherwise fungible units.

2. Technology & architecture

Built on Bitcoin’s BRC-20 standard, SATS uses the Ordinals protocol to assign serial numbers to satoshis, making each identifiable. Inscriptions (data files up to 4MB) are stored in Bitcoin’s witness data field, avoiding main chain bloat. Recent upgrades like UniSat Wallet’s single-step BRC-20 transfers 2 have streamlined transactions, addressing early inefficiencies in moving inscribed satoshis.

3. Tokenomics & governance

SATS has a fixed supply of 2.1 quadrillion tokens (mirroring Bitcoin’s 21M BTC cap in satoshi terms). No inflation mechanism exists, aligning with Bitcoin’s scarcity model. Governance is decentralized, relying on Bitcoin’s proof-of-work consensus and BRC-20 community standards for protocol upgrades.

Conclusion

SATS fundamentally reimagines Bitcoin’s base layer by adding programmable data layers to satoshis—could this innovation balance Bitcoin’s store-of-value ethos with new utility without compromising network efficiency?