Exploring BRC-20 Token Standard: A Glimpse into Bitcoin's Token Revolution. 🟠🟧🔶
In the dynamic landscape of blockchain technology, BRC-20 has emerged as a noteworthy topic, representing an experimental token standard designed for the Bitcoin blockchain. Drawing inspiration from Ethereum's ERC-20, BRC-20 introduces unique mechanisms and functions.
Creation of BRC-20 Tokens:
The journey began with the initiation of the Bitcoin Ordinals protocol in January 2023, allowing the encoding of NFTs in satoshis. By March 2023, a programmer named Domo introduced the BRC-20 token standards, enabling the creation of interchangeable tokens on the Bitcoin network. The inaugural BRC-20 token, "Ordi," quickly garnered attention, marking the onset of a new era.
How BRC-20 Tokens Work:
At the core of BRC-20 tokens lies the intricate functioning of Bitcoin Ordinals. Leveraging a systematic approach to numbering satoshis, users can incorporate additional data through a process known as "inscription." BRC-20 tokens harness JSON (JavaScript Object Notation) data in Ordinals inscriptions, facilitating the distribution, minting, and transfer of tokens.
Differences Between BRC-20 and ERC-20:
Despite the similarity in names, BRC-20 tokens inhabit the Bitcoin network, while ERC-20 is an Ethereum-based token standard. A key distinction lies in the absence of smart contracts in BRC-20 tokens, limiting their functionality compared to ERC-20 counterparts.
Future of BRC-20 Tokens:
While BRC-20 tokens currently lack interaction with smart contracts, their future evolution holds promise with increasing attention and functionality. Integration with projects like Stacks, aiming to bring DeFi, NFTs, and smart contract functions to the Bitcoin blockchain, could propel BRC-20 tokens into new realms.
Popular BRC-20 Tokens by Market Cap:
- OrdI (ORDI)
- TRAC (TRAC)
- DFUK (DFUK)
- DOMO (DOMO)
- MOON (MOON)
- NALS (NALS)
- PIZA (PIZA)
- Comsats (CSAS)
- PEPE (PEPE)
- ALEX $B20 ($B20)
