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Introduction to Ordinals and SADO Protocol

Introduction to Ordinals and SADO Protocol

Introducing Ordinals at FOSSASIA Summit 2023 in Singapore on 13 April 2023.

Also introducing SADO Protocol. The first protocol allowing decentralized and trustless trading of Ordinals. SADO is Self-Authenticating Decentralized Ordinalbook.

U-Zyn Chua

April 17, 2023
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  1. U-Zyn Chua · Birthday Research
    Ordinals


    & SADO Protocol
    FOSSASIA Summit 2023

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  2. 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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  3. Let's talk about


    Bitcoin Ordinals

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  4. What are Bitcoin Ordinals?

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


    21 quadrillion

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  6. Ordering of satoshis
    It's arbitrary, but let's

    set a rule:

    First-in First-out

    (FIFO)

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  7. 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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  8. 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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  9. 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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  10. Trading &
    Marketplace

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  11. 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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  12. 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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  13. Marketplace
    • Problem: How do seller or buyer make the intent known?

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  14. SADO Protocol
    Introducing
    https://sado.space

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  15. SADO
    Self-Authenticating Decentralized Ordinalbook

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  16. 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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  17. Ordzaar
    Decentralized Ordinals Bazaar

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  18. • 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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  19. 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

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