Introduction to Ordinals and SADO Protocol

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U-Zyn Chua · Birthday Research Ordinals & SADO Protocol FOSSASIA Summit 2023

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Hi, I'm U-Zyn Chua • CTO & Co-Founder of Cake DeFi • In Bitcoin since 2010. • Active in the Bitcoin, Ethereum and Dash ecosystem. • Chief architect of Sand Dollar   - The world's fi rst retail CBDC for Bahamas. • Presented in FOSSASIA 2016.

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Let's talk about Bitcoin Ordinals

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What are Bitcoin Ordinals?

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Ordering of satoshis 1st satoshi to 21e(6 + 8)th satoshi 21 quadrillion

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Ordering of satoshis It's arbitrary, but let's   set a rule:   First-in First-out   (FIFO)

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Rarity

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Bitcoin Ordinals • It's a digital artifact. • Non-fungibility. • Why is it not NFT? • Content is fully on-chain • No external link • Immutable • Ethereum NFT (ERC 721) often does not contain any actual artifact. • Inscription is an added feature.

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Inscriptions • Further feature to make Ordinals more interesting. • Ordinal (satoshi) can be inscribed with data, commonly image. • Any binaries are fi ne. • Text, audio, image, movie. • Theoretical max size: 4MB. • Fully on-chain.

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How? • Encoding of data (plain/binary) into Bitcoin witness space via Taproot. • Includes MIME type OP_FALSE OP_IF OP_PUSH "ord" OP_1 OP_PUSH "text/plain;charset=utf-8" OP_0 OP_PUSH "Hello, world!" OP_ENDIF

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Trading & Marketplace

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Trading • Trading (exchanging) of a speci fi c satoshis, for more satoshis. • Exchanging of Ordinals (non-fungible) with Cardinals (fungible). • The beauty of UTXO model of Bitcoin allows it to happen trustlessly.

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Trading 1. Either buyer or seller (usu. buyer) can craft a partially signed transaction. 2. Transmits the partially signed tx to the other party. 3. Agreeable, complete the signature.

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Marketplace • Problem: How do seller or buyer make the intent known?

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SADO Protocol Introducing https://sado.space

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SADO Self-Authenticating Decentralized Ordinalbook

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SADO Self-Authenticating Decentralized Ordinalbook • Free & open source. • Self authenticating: all signatures are validated. • Has a default global order book. • Also supports alternative order book, allowing other SADO users to operate their own private order book if required.

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Ordzaar Decentralized Ordinals Bazaar

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• Utilizes SADO Protocol. • Non-custodial. You own your Bitcoin, Ordinals and Cardinals. • UX Challenges: • Bitcoin ecosystem is not DAPP-ready. • No de facto wallet. • Ordinals support are still limited on Bitcoin wallets.

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Thank you. U-Zyn Chua @uzyn uzyn@cakede fi .com Reach me at Learn more about Birthday Research at https://birthday.dev Learn more about SADO Protocol at https://sado.space