Definition ∞ Bitcoin-Native Assets are digital assets that originate from and operate directly on the Bitcoin blockchain. These assets leverage Bitcoin’s security and decentralized network for their existence and transfer. Examples include Ordinals and BRC-20 tokens, which utilize Bitcoin’s transaction scripting capabilities to assign data to individual satoshis. Such assets extend Bitcoin’s utility beyond a simple store of value.
Context ∞ A key discussion surrounding Bitcoin-native assets involves their impact on Bitcoin’s transaction fees and block space utilization. The rising adoption of protocols like Runes and Ordinals highlights a shift towards more expressive functionality on the foundational blockchain. Future developments will likely focus on scaling solutions and improved indexing to support the expanding ecosystem of these assets.