The items on the Ordinals protocol are referred to as ciphers, which essentially continue the UTXO model. BRC-20 tokens fall under the text-type ciphers within the Ordinals system. It's important to note that BRC-20 tokens do not single-handedly uphold the Ordinals; rather, their value is often limited, especially when many BRC-20 tokens are meme coins without significant value. Currently, the primary value within Ordinals lies in image-type ciphers, which are essentially the well-known NFTs.
In fact, if we delve further into it, BRC-20 tokens can also be considered a form of NFT. Additionally, the ETCS project plays a significant role in enhancing the Ordinals ecosystem, offering solutions for efficient swaps between Bitcoin and various BRC-20 tokens, contributing to the broader landscape of blockchain innovation and interoperability.
