How is Ownership Established in Ordinals and BRC-20 Tokens? 🤔

How can we verify ownership of inscribed digital assets on the Bitcoin blockchain?The ownership of Ordinals is established through a social contract among several individuals agreeing on a numbering system for the satoshis sent in each transaction, and assigning arbitrary data (such as images or files) for each individual sat.

In #Bitcoin, satoshies cannot be distinguished from each other because they are lumped together in an unspent transaction known as a UTXO (chunk of bitcoin). You can imagine them as Lego bricks assembled to make a certain shape 🧱

When a transaction is sent, the bricks are disassembled and reconfigured into another UTXO. During this process, the bricks are shuffled randomly and assembled into a completely different shape.

However, if there is a numbering system for the Satoshis, such as assigning the first Lego brick on the top right as 0, the next piece as 1, and so on, and all users, wallets, and markets agree to adopt this system of numbering, then it is possible to "pretend" that there is a consistent order for the Satoshis during any transfer of the chunks of bitcoin from one address to another, thereby ensuring the transfer of ownership of the assets attached to them.

Keep in mind that ownership depends on the survival of the numbering system. If, for example, other numbering systems start competing for adoption (such as famous wallets and exchanges counting the satoshi bricks starting from the bottom left), you will not be able to prove ownership of the sats and the digital assets under these new systems.

Thus, this is only a fantasy circus based on social recognition of a numbering system. If the numbering system is changed, all the assets will lose their connection to their owners. The whole thing is based on a collective hallucination 🤣

Moreover, it is important to note that unlike bitcoin and the individual sats, these digital assets are not scarce because they are easily printed and manipulated. Therefore, investing in them is not recommended 🚩