Bitcoin Inscription is a technique for adding additional information to Bitcoin transactions that can be used to create Bitcoin-native digital assets such as homogenized tokens (FT) and non-homogenized tokens (NFT). The principle of Bitcoin Inscription is to use the note field or witness field of a Bitcoin transaction to store some customized data such as text, images, videos, etc. The advantage of Bitcoin Inscription is that it can utilize the security, scarcity, and immutability of Bitcoin to provide higher value and security for digital assets. Limitations of bitcoin inscriptions are the need for client-side verification to recognize and maintain the validity of the inscription, and the need to pay higher transaction fees to compete for block space. Representative projects for bitcoin inscriptions are the Ordinals protocol and the BRC-20 protocol, which are used to issue bitcoins NFT and FT, respectively.
