"Inscriptions" as part of the Bitcoin Ordinals update are unique entries or marks that can be added to the smallest unit of Bitcoin, called a satoshi (or sats). Inscriptions can contain text, an image or other digital data, making each Satoshi unique and giving it the same status as the underlying non-fungible tokens (NFTs). It is important to note that thanks to this, using the Ordinals protocol, users can embed information and content into Satoshi, which opens up new opportunities for creating unique digital data on the oldest blockchain network in the Bitcoin world.

Inscriptions are a sort of “buyer of last resort” for cheap space on the blockchain and are likely sensitive to the absolute fee paid per transaction. This means that the instructions respond to the size of the fixed commission (absolute commission) that users are willing to pay to carry out a transaction. That is, if the fee is too high, the instructions may be less active or wait longer to complete the transaction, and if the fee is low, they may be more active. Inscriptions can be thought of as a kind of block filler that fills the remaining space after more valuable money transfers have already been included in the block. When analyzing fees and volume, it must be taken into account that instructions may have a higher perceived “value” than the volume of BTC transferred and stored. Despite the noticeable increase in fee income for miners, the halving (halving of the reward) will lead to serious financial difficulties for many of them unless BTC prices increase significantly.