Introducing the Bitcoin Ordinals DID Method

Hello CCG,

I have created *Yet Another DID Method*. This method uses Bitcoin
transactions directly on L1 to manage DID Document state. The full
specification can be found on github
<https://github.com/ordinalsreserve/btco/blob/main/spec.md>. I welcome your
feedback, questions, and suggestions as this method is developed and
refined. Please don't hesitate to send me questions about the method or
ordinals directly.

The Bitcoin Ordinals DID method is a decentralized identifiers (DIDs)
solution that leverages the Bitcoin blockchain and ordinal theory. By
uniquely identifying individual satoshis, this method enables creating,
resolving, updating, and deactivating DIDs without altering the Bitcoin
network or requiring additional sidechains or tokens.


*DID Syntax and DID Document*DIDs in this method have a specific syntax,
which includes a method-specific identifier derived from the Bitcoin
address and the ordinal position of a satoshi. The syntax can be
represented as did:btco:<satoshi>.

A DID Document contains a DID's public key, authentication information, and
service endpoints. The data model follows the W3C DID Core Specification,
using JSON or JSON-LD as the serialization format.


*Creating a DID Document*Select a unique identifier using ordinal theory to
determine a specific satoshi within the Bitcoin blockchain.

   1. Create a public/private key pair for cryptographic operations and
   authentication.
   2. Define any necessary service endpoints for communication or
   interaction with the DID.
   3. Create a DID Document with the required properties following the DID
   Core Specification.
   4. Inscribe this document (long form json or short form text) onto the
   satoshi with the ordinal number mentioned in the identifier.


*Resolving a DID Document*

   1. Retrieve the inscription data from the satoshi associated with the
   method-specific identifier.
   2. If this utxo has been spent, look for the next DID Document by
   finding another inscription in the spending transaction.


*Updating a DID Document*

   1. Perform a Bitcoin transaction that sends the inscription to the
   control of a new public key (burns the current DID Document). In the same
   transaction, inscribe the new DID Document. The control will effectively
   transfer to this new DID.



*Deactivating a DID*

   1. Perform a Bitcoin transaction that updates the DID but does not
   transfer control to a new DID.


In summary, the Bitcoin Ordinals DID method provides a practical and secure
solution for managing digital identities within the decentralized identity
ecosystem. By leveraging the existing Bitcoin blockchain and ordinal theory,
this method enables a range of innovative use cases and applications.

Best regards,

Brian Richter
Founder / CEO
Aviary Tech / Ordinals Reserve
brian@aviary.tech