Chapter 6: The Procedure for Inscribing a Satoshi with Ordinals

Introduction

Inscribing a satoshi with a unique identifier and associated metadata through ordinals involves a sequence of technical steps. This process, which leverages the capabilities of the Qtum blockchain, requires users to interact with a specialized wallet and understand the mechanics of commit-and-reveal transactions.

Step 1: Establishing a Qtum Address

The initial step involves using a wallet, preferably one designed for ordinals like the ord wallet, to generate a new Qtum address. This address will serve as the destination for the satoshis that are to be inscribed. Creating a new address ensures isolation of the inscription process from other Qtum transactions and funds.

Step 2: Funding the Address

Once the address is created, the user must transfer the required number of satoshis to it. This step is crucial as it determines the quantity of satoshis that will be inscribed. Users should take into account the transaction fees for both the funding and the inscription processes.

Step 3: Crafting the Inscription

With the address funded, the next step is to create the inscription using the ordinal wallet. This involves selecting the satoshis to be inscribed and attaching the desired metadata or content. The wallet then prepares a commit transaction that encodes the inscription in a way that is not immediately visible on the blockchain.

Step 4: Executing the Commit-and-Reveal Transactions

The final step is to confirm the commit-and-reveal transactions on the blockchain. The commit transaction, which initially conceals the inscription, is broadcast first. Once confirmed, it is followed by the reveal transaction. The reveal transaction spends the output of the commit transaction in a way that exposes the inscription data within the transaction's witness data. This dual-transaction mechanism ensures both the immutability and the public visibility of the inscription on the blockchain.

Technical Considerations

Understanding the nuances of Qtum transactions is crucial in this process. The commit transaction must be crafted in a way that correctly commits to the inscription, while the reveal transaction must be executed in a manner that successfully uncovers the inscription without errors. Moreover, users should be aware of the potential variations in transaction fees and network congestion, which can impact the timing and cost of the inscription process.