Simply, ordinals are a way of distinguishing each litoshi created from it's minting block based on which order they sit in the blockchain. They can be treated as fungible or non-fungible and the highly experimental and risky test standard, LTC-20, defines a way to manage transferring the ordinal.
As stated by the development team, LitecoinLabs: "These (NFTs) will be worthless." (https://bit.ly/42ySa4a)
But, there is more to the story!
The crypto community has a long history of testing and experimentation. And those with the technical prowess do so with the notion that they may lose Litecoin in the process! This new standard and ordinals are not at all like NFTs found on Ethereum or other blockchains. Here, the receiving wallet can easily eat the ordinal!
Where did my ordinal go?
Realize you can mint and create an Litecoin Ordinal, but you take a major risk. The risk is because not all wallets recognize ordinals. You can send the ordinal and in the end it could turn into a regular Litecoin because the receiving wallet may not properly recognize the metadata or it could improperly parse the data. As the LTC-20 is just an idea under test, no one can really say what might happen.
In the Bitcoin world, ordinals are very popular. But, the risk is the same.
BRC-20 Minting (https://unisat.io/brc20)
While inscriptions onto the Litecoin blockchain are possible and popular, the architecture is vastly different than smart contracts where the NFT is an entity recognized by the wallets by design. So, new technology is exciting, but there is always a risk. Don't forget!
While Litewallet is an integral part of the Litecoin ecosystem, there are other more critical features to add (MWEB, full Segwit, better sync) as part of the roadmap. Meanwhile, we watch the LTC-20 ordinal experiment with anticipation!
And, please follow us in our social media to learn more. Or, signup to our mailing list at litewallet.io!