# SATS (Ordinals)

> SATS is a token based on the BRC-20 standard using Bitcoin's Ordinals protocol for token creation and management, introduced in March 2023.

- Canonical URL: https://iq.wiki/wiki/sats-ordinals
- Categories: Cryptoassets
- Created: 2024-07-21T08:56:59.377Z
- Last updated: 2024-08-12T18:56:18.478Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

---

**SATS** is a token based on the [BRC-20](https://iq.wiki/wiki/brc-20) standard, which uses the [Ordinals](https://iq.wiki/wiki/bitcoin-ordinal) protocol on the [Bitcoin](https://iq.wiki/wiki/bitcoin) network to facilitate token creation and management.[\[1\]](#cite-id-wumvci1bfxc)[\[2\]](#cite-id-2vjzczgk3ku)  
  
# Overview  
  
SATS, introduced in March 2023, is a token developed under the [BRC-20](https://iq.wiki/wiki/brc-20) standard and utilizes the [ordinals](https://iq.wiki/wiki/bitcoin-ordinal) protocol on the [Bitcoin](https://iq.wiki/wiki/bitcoin) network. This protocol assigns unique IDs to satoshis, enabling the creation of interchangeable tokens.  
  
The [BRC-20](https://iq.wiki/wiki/brc-20) standard facilitates the processes of deploying, minting, and transferring these tokens, with network fees that vary based on [Bitcoin’s](https://iq.wiki/wiki/bitcoin) fee rate. Unlike [ERC-20](https://iq.wiki/wiki/erc-20) tokens, [BRC-20 ](https://iq.wiki/wiki/brc-20)tokens, including SATS, do not support [smart contracts](https://iq.wiki/wiki/smart-contract). However, they are being explored for uses such as microtransactions and decentralized finance. SATS are derived from "Satoshis," the smallest unit of Bitcoin.[\[1\]](#cite-id-wumvci1bfxc)[\[2\]](#cite-id-2vjzczgk3ku)[\[3\]](#cite-id-u33m1a77jtp)  
  
## Deploying and Minting SATS  
  
Deploying SATS [BRC-20](https://iq.wiki/wiki/brc-20) tokens involves recording their metadata onto the [Bitcoin](https://iq.wiki/wiki/bitcoin) [blockchain](https://iq.wiki/wiki/blockchain) in JSON format. This metadata typically includes details such as the protocol type, operational functions, token symbol, supply limits, minting limits, and decimal places.  
  
The [minting](https://iq.wiki/wiki/minting) process aims to generate a specified number of tokens through JSON inscriptions. Once the network verifies these inscriptions, the tokens are assigned to the creator's address, similar to how transactions are processed.[\[2\]](#cite-id-2vjzczgk3ku)  
  
## Transferring SATS  
  
Transferring SATS tokens requires generating a new inscription with the 'transfer' operation and specifying the amount to be sent. This inscription is processed as a standard Bitcoin transaction, which moves the tokens from one address to another. The [Bitcoin](https://iq.wiki/wiki/bitcoin) network treats this as a regular transaction and does not interpret the embedded [BRC-20](https://iq.wiki/wiki/brc-20) token data.  
  
The introduction of SATS [BRC-20](https://iq.wiki/wiki/brc-20) tokens has prompted discussions regarding increased transaction fees and concerns about deviations from [Bitcoin's](https://iq.wiki/wiki/bitcoin) original peer-to-peer purpose, reflecting both the new functionalities and challenges associated with these tokens.[\[2\]](#cite-id-2vjzczgk3ku)