1Sat Ordinals

PROJECT OVERVIEW

• Product: 1Sat Ordinals Protocol, a protocol built on the BSV blockchain, enabling the inscription of data onto individual satoshis, the smallest unit of Bitcoin. This allows for the creation of unique, scarce digital assets, essentially NFTs, at the most fundamental level of the Bitcoin blockchain.

• Organisation Name: 1Sat Ordinals

• Website URL: https://1satordinals.com/

• Protocol specifications: https://docs.1satordinals.com/

• Industry: Blockchain Infrastructure / Tokenization / Smart Contracts

• Geographic Reach: Global (with active developer community)

• BSV Integration Start Date: 2022 (early conceptual work), with accelerating development from 2023 onward

BUSINESS CHALLENGE

Inefficiencies or risks in token protocols:

• Earlier token systems on BSV and other blockchains encountered issues related to complexity, cost, limited programmability, and reliance on centralized indexers.

• Traditional token protocols often struggled with scalability and tracking, requiring resource-intensive indexing of transaction histories.

Limitations of traditional systems:

• High fees, slow transaction times, and dust limits on other chains made experimentation and micropayment-based innovation costly and restrictive.

• Other blockchains lack the native scalability and script-level programmability that BSV offers for custom token logic and contracts.

WHY BSV?

Ideal blockchain due to:

• Ultra-low fees: Enabling transactions using just a single satoshi (1/100,000,000 of a Bitcoin).

• Scalability: High throughput and ability to support mass tokenization and complex contract execution at low cost.

• Script capabilities: Native support for advanced logic, such as time locks and atomic swaps.

• SPV integration: Enables true peer-to-peer transactions without centralized infrastructure.

Comparison to other chains:

• On BTC and ETH, similar ordinal/token implementations rely on external indexing and are limited by block size and gas costs.

• BSV’s architecture avoids these pitfalls, enabling fully on-chain, scalable, and programmable solutions.

SOLUTION ARCHITECTURE

Overview:

• 1Sat Ordinals introduces a protocol for tokenizing individual satoshis, treating them as unique, traceable units ("colored coins").

• Tokens are inscribed directly on-chain, with ownership tracked via satoshi movement rather than off-chain indexing.

Key Components:

• Inscription Protocol: Marks satoshis with unique metadata (e.g., for NFTs or smart contracts).

• Smart Contracts: Developers can encode custom logic (e.g., sales contracts, transfers) directly into Bitcoin Script.

• SPV Wallet Support: In development to enable lightweight peer-to-peer token transfers.

Tooling & Partners:

• Integrations with sCrypt tooling and the Yours Wallet open-source ecosystem.

• Developer community actively building demonstration projects and contract libraries.

IMPLEMENTATION PROCESS

Phases of rollout:

• Initial protocol design and experimentation with satoshi inscriptions.

• Demonstrations of advanced script usage (e.g., atomic swaps).

• Current focus on expanding tools, documentation, and wallet support (SPV).

Developer onboarding:

• Extensive documentation and tutorials provided via 1satordinals.com and docs.1satordinals.com.

OUTCOMES & BUSINESS IMPACT

Quantifiable improvements:

• Transaction costs reduced to a fraction of a cent per token transfer.

• Enabled development of truly scalable and programmable NFTs and micropayment tools.

• Drastic reduction in system complexity (no need for centralized indexers).

Before vs. After:

• Previous token models on BSV required heavier infrastructure; 1Sat Ordinals simplifies deployment and tracking.

• Opens up novel use cases like single-satoshi collectibles, gaming assets, and smart-logic tokens.

Stakeholder feedback:

• Developers report rapid prototyping and low-friction experimentation.

• Ecosystem partners like sCrypt have adopted support for Ordinals in their tools.

CHALLENGES & MITIGATIONS

Technical challenges:

• Establishing a token protocol that remains lightweight and scalable without relying on external databases.

• Building developer tools and community adoption from the ground up.

Mitigations:

• Leveraging Bitcoin Script and BSV’s existing scalability to sidestep many architectural bottlenecks.

• Focused on open-source development and tool reuse (e.g., extending Yours wallet for SPV).

FUTURE VISION

Expansion plans:

• Widen adoption across wallets and platforms to support ordinal tokens natively.

• Extend protocol use cases into art, gaming, collectibles, digital ID, and beyond.

Planned innovations:

• Full SPV wallet integration for token transfers.

• More robust tooling for dynamic contracts and on-chain token applications.

TESTIMONIAL HIGHLIGHTS

“BSV is unique because we can actually do transactions with a single satoshi… This allows for an entirely new class of micropayment applications, collectibles, and programmable assets.”

— Luke Rohenaz, Developer and Co-Creator of 1Sat Ordinals

“It’s not just about NFTs—we’re creating a foundation for programmable digital assets that scale. With 1Sat Ordinals, we’re finally unlocking what Bitcoin was always meant to do.”

— David Case, Developer and Smart Contract Engineer