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.

Transcript

1. U-Zyn Chua · Birthday Research Ordinals & SADO Protocol FOSSASIA Summit 2023
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.
4. Let's talk about Bitcoin Ordinals
7. What are Bitcoin Ordinals?
8. Ordering of satoshis 1st satoshi to 21e(6 + 8)th satoshi 21 quadrillion
9. Ordering of satoshis It's arbitrary, but let's 
 set a rule: 
 First-in First-out 
 (FIFO)
10. Rarity
11. 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.
12. 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.
13. 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
14. Trading & Marketplace
15. 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.
16. 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.
17. Marketplace • Problem: How do seller or buyer make the intent known?
18. SADO Protocol Introducing https://sado.space
19. SADO Self-Authenticating Decentralized Ordinalbook
21. 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.
22. Ordzaar Decentralized Ordinals Bazaar
23. • 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.
25. 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