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Digital Artifacts

There are several interpretations of digital artifacts. In information science, a digital artifact is an undesired or unintended alteration of data introduced in a digital process by an involved technique. Alternatively, a digital artifact refers to any visual piece of media that enhances a representation. 

Digital artifacts in the context of cryptocurrencies and, more specifically, Bitcoin, refers to digital records and data inscribed to an individual satoshi on the Bitcoin block space as a transaction on the Bitcoin network. This means that digital artifacts or inscriptions are immutable, on-chain, decentralized, and secure on the Bitcoin blockchain. 

Digital artifacts provide additional context and information about bitcoin transactions, such as through inscriptions or metadata associated with individual transactions. This data can be used for a myriad of purposes, like tracking the movement of Bitcoin over time, identifying patterns or trends in transactions, or verifying the authenticity of Bitcoin transactions or user holdings.

Digital artifacts on Bitcoin are important as they provide a means for bitcoin transactions to be securely recorded and verified on the digital ledger. Bitcoin functions as a decentralized and transparent currency with all bitcoin transactions publicly recorded on the blockchain and viewable by anyone. Digital artifacts are yet another form of transaction that is publicly viewable by anyone on the ledger.

BIP - Bitcoin Improvement Proposal

Ordinals - The end result of a paired identifier inscribed along with a digital artifact on a Bitcoin Satoshi.

Inscriptions - Arbitrary content added to Bitcoin satoshis (sats) to create bitcoin-native digital artifacts or NFTs.

Ordinal Theory - Assigns sats with a numismatic value, allowing them to be collected and traded as objects like non-fungible tokens (NFTs).

Satoshis (sats) - Smallest unit used in measuring Bitcoin, named after the anonymous creator of Bitcoin.

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