People talk about Ordinals a lot, and fair enough, they shook things up. But there is another lane that keeps showing up in collector chats and dev threads. Bitcoin Stamps. They take a different path and, in a very literal sense, make data stick. You know what? That stickiness is the whole point.
What are Bitcoin Stamps, really?
Bitcoin Stamps describe a technique for embedding metadata inside Bitcoin transaction outputs. In plain English, a creator takes image data or text, encodes it, and tucks it into the part of a transaction that lives in the unspent transaction outputs, also known as the UTXO set. Because nodes must keep the UTXO set to validate transactions, that data is carried forward by every full node that tracks those coins. This is why people call Stamps more “durable.” The data is not just written on-chain, it is parked in a place nodes cannot ignore.
The STAMPS idea arrived as a response to short-term storage worries. When your art lives in the UTXO set, it is harder to prune away. That does not make it perfect or cheap. It makes it stubborn. And for collectors who want permanence, stubborn is good.
How the protocol embeds metadata
Let me explain how the sausage gets made, without getting too deep into jargon. Creators take an image, often PNG or GIF, and convert it to a base64 string. That string is split into chunks and inserted into a transaction output script. Many Stamps use a multi-signature style output where the 'public keys' are actually carrying pieces of the encoded data. Indexers then reassemble those chunks later, check the STAMP: tag that signals valid content, and render the original image or text.
Because the data sits in outputs that are left unspent, it remains part of the UTXO set. As long as those outputs are not spent, every node that maintains the UTXO set carries that payload. If someone spends the output, the data leaves the UTXO set, but it still remains in the historical blocks. So yes, it is complicated. Permanence is strongest while the Stamp remains unspent, yet the chain history still holds the record either way. That is the mild contradiction that trips people up at first, and it is worth understanding.
Stamps versus Ordinals, without the tribalism
Ordinals and Stamps both put extra data on Bitcoin, but they use different hooks and come with different tradeoffs.
- Where the data lives: Stamps store payloads in UTXO outputs. Ordinals store content in witness data inside Taproot transactions.
- Permanence profile: UTXO data is carried by all full nodes that track unspent coins, which makes Stamps sticky. Ordinals data sits in block data and can be pruned by nodes that run in pruned mode, though archives and indexers keep it alive.
- Cost and size: Stamps are usually more expensive per byte and push creators toward smaller images. Ordinals allow much larger files at lower cost, which is attractive for media-heavy drops.
- Network impact: Stamps add to UTXO set size if not managed thoughtfully. Ordinals add to block space usage and rely on witness discounts, which keeps fees lower but can still crowd blocks during hype cycles.
Neither approach is 'better' in all cases. If your north star is maximum staying power inside the UTXO set, Stamps will feel right. If you want large files and cheaper fees, Ordinals might fit your project.
SRC-20, the token flavor of Stamps
Once images and metadata found a home, the community did what crypto always does. Tokens. SRC-20 is a simple text standard built on top of Stamps that defines mint, deploy, and transfer actions for fungible tokens. Think of it as a cousin to BRC-20, tuned for the Stamps ecosystem. Creators publish small JSON-like payloads through the Stamp mechanism and indexers interpret the rules to track balances.
It is fun, a little chaotic, and very crypto. Liquidity can be thin, tickers can be confusing, and the market mood swings like summer weather. If you participate, use sensible risk sizing and treat shiny new tickers with healthy skepticism.
Why permanence matters to collectors
There is a cultural thread here. Bitcoin is about persistence and finality. Collectors who prefer Stamps often say they want their art in the same logical backyard as unspent coins. It feels closer to the money. Is that emotional? Maybe. But collecting is emotional. The tech choice sends a signal about values, about wanting pieces that keep their footing when tools change or servers vanish.
Drawbacks you should consider
- Fees: Embedding data inside outputs costs more sats than many Ordinals inscriptions, especially during busy mempools.
- UTXO bloat: Stamps that remain unspent increase the UTXO set. Some developers dislike this and say it raises validation overhead for everyone.
- Size limits: Because costs rise with data, creators keep files small. Crisp pixel art and minimal palettes shine here; giant 4K animations do not.
- Tooling gaps: Wallet support is better than it was, but still spotty. You will rely on a handful of niche indexers and marketplaces.
None of these are deal breakers for true believers. They are tradeoffs, and tradeoffs are normal in Bitcoin land.
Wallets, marketplaces, and hardware security
You can mint and trade Stamps through platforms that understand the format, including communities that grew from Counterparty culture. Marketplaces like Magic Eden have listed curated Stamp collections, and dedicated hubs such as Stampchain showcase minting tools and galleries. The scene moves fast, so check current support before you press send.
What about wallets? Some Stamps-aware wallets integrate with Counterparty-style flows and custom indexers, letting you view and manage your pieces. If you care about key security, pair that software with a hardware wallet. Ledger and Trezor devices can hold your keys while you sign transactions through a connected interface, so your private keys never touch the browser. It is the classic split, convenience up front with a locked vault behind it. That simple move reduces risk more than any buzzword ever will.
Minting a Stamp, step by step
Here is the thing. The minting process sounds mysterious, but the flow is simple when you break it down.
- Prepare the asset: Use a small, clean image or a compact text payload. Convert it to base64 with a reliable tool.
- Choose a Stamp-aware platform: Pick a service that tags your content with the required STAMP marker and builds the transaction correctly.
- Set fees with care: During busy periods, underpaying fees can leave your transaction hanging. Overpaying wastes sats. Check current mempool conditions.
- Confirm and verify: After mining, use an indexer or your wallet’s viewer to confirm the Stamp renders properly.
- Decide on spending: If permanence in the UTXO set is your priority, leave that output unspent. If you later spend it, the historical record remains on-chain, but you lose the live UTXO presence.
That last step is the quiet lever. The choice to keep a Stamp output unspent is what makes it linger where nodes cannot ignore it.
Use cases that actually make sense
Small-format art. Scarce collectibles. Project badges that need long shelf life. On-chain certificates for physical items. Even tiny zines or poems. The format nudges creators toward restraint, which often improves the final piece. Constraints can spark creativity, and Stamps lean into that constraint with a nod to early internet aesthetics.
Seasonally, you see waves. During fee spikes, minting slows and curation gets thoughtful. In quieter months, artists experiment with new palettes and micro-animations. The rhythm mirrors Bitcoin’s own cycles, a little loud, then a little patient.
Security tips, because pain is expensive
- Use hardware signing: Keep private keys on a Ledger or Trezor and sign through a trusted interface.
- Verify targets: Double-check destination addresses and fee settings. One typo can ruin a week.
- Back up seeds: Store recovery phrases offline, not in screenshots or cloud notes.
- Test with small amounts: Send a tiny transaction first, especially with new platforms.
Honestly, these habits sound boring. Boring is good. Boring keeps art where it belongs.
Final thoughts
Bitcoin Stamps are opinionated. They value durability in the UTXO set, accept higher costs, and celebrate small, sharp visuals. Ordinals aim for more media, lower fees, and broad adoption. Both are valid ways to publish culture on Bitcoin. If permanence is your north star, Stamps feel like an heirloom. If flexibility and size matter most, Ordinals will keep your canvas wide.
One more thought before you go. Collect what you enjoy looking at a year from now. Technology shifts, indexers change, hype fades. The pieces that still make you smile on a quiet morning, those are the ones worth stamping into stone.
