💥OVERVIEW OF THE BRC-20 SYSTEM (FINAL PART)💥
🚀Difference between BRC-20 and ERC-20
👉As we shared in the previous section, BRC-20 is inspired by Ethereum's ERC-20 token standard. Of course, the most fundamental difference between these two standards is their blockchain. BRC-20 tokens exist on the Bitcoin blockchain while ERC-20 tokens exist on the Ethereum blockchain. That means some practical differences also appear.
✨Functions: BRC-20 token is not a smart contract. Meaning they cannot interact with other protocols or applications on the Bitcoin network. That gives them much less functionality than ERC-20 tokens, which can indirectly allow users to borrow crypto, lend…
✨Storage: These BRC-20 tokens use Ordinals and Inscriptions to create a data storage solution on satoshi while ERC-20 tokens are native to the Ethereum protocol. It is possible that any future updates to Bitcoin could cause BRC-20 tokens to become untradeable or even disappear altogether. How to buy/sell BRC-20 tokens? To buy or sell BRC-20 tokens we will need a Bitcoin wallet that supports Taproot and connect it to a supporting exchange. Some centralized exchanges include UniSat and Ordinals Wallet.
Additionally, some decentralized exchanges such as Ordswap also allow P2P exchange of BRC-20 tokens, but the liquidity is much lower. However, you need to have Bitcoin in your wallet to pay any transaction fees.
So we have ended the series about the BRC-20 system. If you like this series, please give us a like and follow so we can be motivated to continue.
