For Beginners

What Are Inscriptions in Crypto?

Various types of data like text, images, videos, or even code added to Bitcoin

  • mizu.jpg

Inscriptions in cryptocurrency refer to metadata including various types of data, such as text, images, videos, or even code added to Bitcoin satoshis (sats), which are the smallest units of Bitcoin. 


Inscriptions in cryptocurrency refer to metadata added to Bitcoin satoshis (sats), the smallest units of Bitcoin. This metadata can include various types of data, such as text, images, videos, or even code, which can include information attached to transactions. Stored permanently on the Bitcoin blockchain, these inscriptions are immutable, meaning they cannot be altered or removed once added.

Usage/Use Cases:

Storing Data: 
Inscriptions can store various data forms, making them useful transaction contexts for tracking a satoshi's history, storing ownership details, or creating unique digital assets.

Non-Fungible Tokens (NFTs): 
They can be used to create non-replicable NFTs, unique digital assets that can represent items ranging from art to real estate.

Decentralized Applications (DApps): 
Inscriptions facilitate the development of DApps, which operate on the blockchain and are independent of any central authority.

Future Outlook

Inscriptions are a burgeoning technology in the cryptocurrency space, expected to transform how digital assets are created, tracked, and traded. Bitcoin inscriptions can store a wide range of data on the blockchain, they enable the creation of unique digital assets, the building of DApps, and secure data storage. The introduction of ordinal inscriptions has expanded the utility of Bitcoin beyond just financial transactions, now encompassing the storage of digital artifacts like books and video games. As this technology evolves, it's likely to find more innovative applications on Bitcoin.

Sushi’s development on Bitcoin blockchain

Sushi has been deployed on several blockchain networks that are actively working to expand their utility beyond just processing transactions on the Bitcoin blockchain. These networks include Core and Zetachain, with the latter gearing up for its mainnet launch in the coming weeks. Let's explore what these developments are and the implications they hold for Sushi.

Native BTC Swap
Sushi is set to offer direct Bitcoin swapping, thanks to its integration with Zetachain. This integration of Bitcoin into standard DeFi protocols, which have been traditionally dominated by Ethereum, will influence the role of Bitcoin in DeFi. This move opens up new possibilities for handling Bitcoin transactions on Sushi, making it the first DEX to offer native BTC swaps in DeFi.

Addressing Liquidity Fragmentation
This integration strategy aims to reduce the fragmentation of Bitcoin liquidity in DeFi. Moving away from Wrapped Bitcoin (WBTC) and all other derived BTCs, Sushi is set to create Bitcoin liquidity pools, improving the efficiency of DeFi transactions.

Cross-Chain Swap with Omni-Chain Connectivity via Zetachain
Zetachain enables the fluid integration and migration of Bitcoin-backed financial instruments across various EVM-compatible chains. Together with Sushi's unique cross-chain swap UI, users will be able to perform Bitcoin cross-chain swaps on Sushi, making it easier than ever to trade BTC across different chains.

Future opportunities for inscriptions

Zetachain’s Omnichain Smart Contract (OSC) can be called directly from a non-smart contract chain like Bitcoin and trigger a mint or trade on ZetaChain EVM. On ZetaChain’s roadmap is direct support of Bitcoin Ordinals inputs and the ability for OSCs to directly custody and manage foreign NFTs, including Bitcoin Ordinals. Also, expect the support of BRC20 fungible tokens based on the ordinal tech stack.

Sushi is keeping a close eye on these developments in order to be the first to support use cases, such as enabling users to send Ordinals on the Bitcoin network to invoke the OSC on ZetaChain. With ZetaChain, Sushi could support native trading of inscriptions and other non-fungible tokens on many chains, including from the Bitcoin network itself.

Relevant Terms

Bitcoin: The Bitcoin blockchain

bitcoin: The bitcoin cryptocurrencyBIP (Bitcoin Improvement Proposal): Proposals for changes to the Bitcoin protocol.

Ordinals: The end result of inscribed digital artifacts on Bitcoin satoshis.

Ordinal Theory: A system assigning numismatic value to satoshis, allowing their collection and trade like NFTs.

Digital Artifacts: Essentially inscriptions, which can be NFTs, stored immutably on the blockchain.

Satoshis (sats): The smallest unit of Bitcoin, used for measurement and transactions.


Trust Machines: