With the rise of Ordinals, the crypto community has discovered a new way to interact with Bitcoin. “Inscribing” Satoshis presents a novel way of transaction and data attribution to the network. So-called “Bitcoin NFTs” have taken Web3 by storm. Today, over 120,000 inscriptions exist on Bitcoin using Ordinals.

The cryptocurrency space stems directly from early contributions to the Bitcoin codebase. Decentralized networks tokenize and secure real-world assets with smart contracts. Blockchain networks like Ethereum have increased exposure to Web3 asset ownership, and innovation continues daily. However, progress doesn’t solely occur on smart contract chains. Ordinals have brought NFTs to Bitcoin permanently, utilizing core Bitcoin concepts (UTXOs) to allow for proper transaction and transmission of Bitcoin NFTs on a chain created for decentralized peer-to-peer currency.

Yet, the accessibility of inscription should not be contained solely on the Bitcoin chain. Similarly to wBTC, a solution for greater adoption of Bitcoin — the ability to loan, collateralize, fractionalize, and batch currency needs to exist for financial adoption. Bitcoin will continue as the king and pioneer of currencies. Mainstream adoption will advance this.

The Basis of Innovation

On October 20, 2020, Jeff Garzik, Co-founder, and CEO of Bloq finalized “nft-wrap-sol,” open-source code that allowed any user to “wrap” their digital assets inside a unique, on-chain container. The article written after, “Open-Source DeFi components for Developers,” spoke to its potential:

“The next component is the NFT Wrapper. With this wrapper, users can “bundle” any number or amount of ERC-20 tokens into a single NFT. In essence, this represents a verifiable “portfolio” of financial products. While wrapped as a non-fungible token, this enables users to sell or auction multi-token positions on existing NFT marketplaces. There are controls in place that ensure the underlying tokens cannot be sold or moved for a certain period of time, or as long as the NFT is on sale.” — Jeff Garzik

Jeff Garzik’s prolific career began before his major contributions to Bitcoin. He previously pioneered open-source solutions at Linux with significant experience writing and maintaining large code-bases. He worked directly with Satoshi, implementing many core updates to Bitcoin’s node software until Satoshi’s departure in 2011, and continued doing so until 2016.

“Open source is key to rapid innovation, and this has been true of both the early days of Linux and cryptocurrency.” — Jeff Garzik

And it was from “nft-wrap-sol” that current-day company Capsule was born. Capsule is a secure, decentralized infrastructure protocol dedicated to facilitating composability within Web3. Capsule features a completely open API abstractable by any developer and allows for anyone to easily create a “wrapped” asset for use with any protocol on the Ethereum network. Jeff currently serves as Chairman and Advisor for Capsule.

Ordinary Oranges

It only took the Capsule team a day and a half to connect the dots. Ordinals live passively on the Bitcoin blockchain. Ethereum NFTs are traded, loaned, and even collateralized daily. To properly commercialize Bitcoin NFTs, “wrapping” was necessary. And thanks to Garzik’s early contribution, the Capsule team was in the best position to solve it.

Thus, Ordinary Oranges was born: a collection of 256 Bitcoin inscriptions numbering from 67,060 to 78,860, accessible on the Ethereum Blockchain. Each Ordinary Orange contains traits pertaining to that inscribed to the individual satoshi: address, ID, satoshi number, and more. The owner of an Ordinary Orange has the ability to permanently burn their asset on the Ethereum blockchain to obtain their unique satoshi on the Bitcoin blockchain.

With this collection, users can integrate a historic Bitcoin inscription alongside any Web3 development. Lend, bridge, fractionalize, wrap, collateralize, and more, all under the widely adopted ERC-721 standard. Innovation has allowed us to map individual satoshi data content to the wider ecosystem. The implications of such are monumentous, and the expansion of Bitcoin and smart contracts are clear. It’s quite literally the future of finance. And Ordinary Oranges will be inscribed in that, too.

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Co-Founder & CEO

Capsule