Ordinals start from a simple idea: since we know the final quantity of bitcoins and their issuance rate, we can number satoshis in the order they are mined.

What is a satoshi? It is the smallest divisible unit of a bitcoin. One bitcoin equals 100 million satoshis. With 21 million bitcoins, there are 2.1 quadrillion satoshis.

Numbering these satoshis enables two things: identifying and tracking each satoshi across transactions, as each one has a unique identifier comparable to a serial number.

This makes each satoshi non-fungible, meaning it is not interchangeable. While its face value remains the same, certain characteristics can make it rarer and therefore more valuable—similar to a collectible coin in numismatics.

Let's see what these characteristics are linked to.

• Characteristics related to mining events: The first satoshi of a bitcoin, of a block, or of a new mining difficulty adjustment.
• Characteristics related to Bitcoin's history: Satoshis mined by Nakamoto, satoshis used in the first commercial transaction of 10,000 bitcoins that paid for the legendary two pizzas in 2010.
• Characteristics related to the identifier: Such as palindromic numbers or two- or three-digit numbers, for example.

When these characteristics are combined, they become extremely rare, often referred to as digital gemstones or internet diamonds.

As a result, there are rare sats hunters, and tools exist to identify them.

Others, which exist in vast quantities—such as the Pizza Sats (1 trillion satoshis)—have led to the creation of a token on Bitcoin, somewhat like a memecoin.

Thanks to rare sats, we are witnessing the emergence of an ecosystem that resembles both Bitcoin-native tokens and numismatics.

They come at all prices!

Some rare sats have been sold by Sotheby’s for tens of thousands of dollars.

And one satoshi was recently sold for 33 bitcoins!