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Bitcoin STAMPS

Bitcoin STAMPS (also called SRC-20 tokens) are a new class of Bitcoin-native NFTs that store tiny images directly in spendable transaction outputs on the Bitcoin blockchain. Because the image data is encoded as base64 and split across transaction outputs, STAMPS are designed to be immutable and resistant to pruning, distinguishing them from other inscription methods that rely on witnesses or external databases. Technical constraints limit STAMPS to very small graphics (24×24 pixels) and only a few file types (PNG, GIF, SVG), which reduces storage overhead but also constrains creative possibilities. The protocol is still early-stage: initial implementations used Counterparty broadcasts, while updated SRC-20 encoding writes directly to Bitcoin transactions, and ecosystem integration with wallets and marketplaces is ongoing. Reception is mixed—some criticize the network cost and limited utility, while others view STAMPS as a way to spur Bitcoin infrastructure and collector interest.

Introduction

Overview

Bitcoin STAMPS (often called SRC-20 tokens) are an emerging NFT format built directly on the Bitcoin blockchain. Their goal is to provide a permanent, on-chain way to represent tiny digital artworks or collectibles by embedding encoded image data into spendable transaction outputs. STAMPS aim for long-term immutability by making their data part of the transaction outputs that every full node downloads, rather than relying on off-chain storage or witness data that could be pruned.

Core Capabilities
  • 1. Permanent on-chain storage: STAMPS encode image data into transaction outputs so that the data is propagated to and stored by all full nodes, making pruning infeasible.

  • 2. Simple tokenized identifiers: Each STAMP receives a unique identifier recorded on-chain, enabling provenance and ownership tracking like other NFTs.

  • 3. Compact image support: STAMPS target extremely small images (24×24 pixels) and support a limited set of file formats (PNG, GIF, SVG), prioritizing permanence over large media capability.

  • 4. Direct blockchain encoding (SRC-20): The protocol encodes data directly into Bitcoin transactions (the SRC-20 specification), eliminating the need for earlier broadcast methods such as Counterparty.

  • 5. Tradeability via external platforms: While native marketplace support is limited at launch, developers plan or have discussed integrations with wallets and marketplaces to enable minting, discovery, and trading.

How They Work

SRC-20 STAMPS convert a small image file into a base64 string and chunk that string across transaction outputs. Because the data is placed inside spendable outputs instead of in a witness or off-chain pointer, every full node that downloads and stores the Bitcoin ledger will retain the bytes that constitute the image. Developers and indexers (for example, stampchain.io) decode the base64 payload to reconstruct the artwork and provide interfaces for collectors to view and trade STAMPS.

The encoding process limits file size and complexity, so STAMPS intentionally restrict supported formats to PNG, GIF, and SVG and impose a strict pixel dimension cap. Those constraints reduce storage costs per STAMP but also create deliberate trade-offs around artistic freedom and utility.

Differences from Ordinal Inscriptions

STAMPS and Ordinal inscriptions are both attempts to create Bitcoin-native digital assets, but they diverge in design and trade-offs. Immutability is emphasized for STAMPS because outputs are downloaded by all nodes, whereas Ordinals often depend on witness data that—while generally preserved—could theoretically be pruned. Size limitations favor Ordinals for richer content (Ordinals can leverage larger block payloads), while STAMPS enforce tiny images to keep global storage burdens lower. STAMPS are narrower in file type support, whereas Ordinals can host a wide array of data types including apps, videos, and audio via taproot workaround techniques.

Industry Reaction and Adoption

Reactions to STAMPS have been mixed. Critics worry about putting even small, non-fungible media onto Bitcoin, citing potential network congestion and limited use cases given the tiny image size. Proponents counter that STAMPS can help grow Bitcoin tooling and collector interest, and that the SRC-20 approach may encourage further development of wallets, indexers, and marketplaces. As of the article’s posting, integrations with major NFT marketplaces were not yet standard, but conversations with platforms and wallet teams were underway.

Why Watch STAMPS

STAMPS are a useful case study in balancing permanence, cost, and usability on Bitcoin. They highlight how design constraints (like 24×24 images and restricted formats) reflect a deliberate choice to preserve decentralization and ensure on-chain retention. For collectors, developers, and infrastructure providers, SRC-20 tokens may influence future experiments in Bitcoin-native assets and integration strategies. Observing adoption, marketplace support, and developer tooling will be key to judging whether STAMPS become a lasting niche or an experimental footnote.

Conclusion

Bitcoin STAMPS represent a pragmatic, permanence-focused approach to NFTs on Bitcoin: intentionally constrained, technically novel, and still early in adoption. Their emphasis on embedding data in spendable outputs differentiates them from other inscription techniques, creating both unique benefits (strong immutability) and clear limitations (tiny images and limited formats). As tooling and marketplace support evolve, STAMPS are worth watching for anyone interested in on-chain collectibles and the long-term growth of Bitcoin-based digital assets.

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