How Did BRC-20 Come About? What Does BRC-20 Do? – Metaverseplanet.net

A new token has joined the list of token standards in the cryptocurrency world: BRC-20. Inspired by the ERC-20 token standard of the Ethereum (ETH) blockchain, BRC-20 offers a wide range of functions. Thanks to the Ordinals protocol, BRC-20 makes it possible to mint tokens on the Bitcoin (BTC) blockchain.

In this article, we will take a closer look at what the BRC-20 standard does and discuss its origins.

What is BRC-20?

BRC-20 is a token standard based on the Ordinals protocol that enables the creation of NFTs on the Bitcoin network. Although it is inspired by the ERC-20 standard, BRC-20 does not use smart contracts like ERC-20 or other Ethereum standards. Instead, BRC-20 allows users to store a script on the Bitcoin blockchain and bind tokens to individual satoshis.

Each satoshi is then assigned a unique number, turning them into non-fungible tokens similar to NFTs. These uniquely numbered satoshis are referred to as ordinals. In the BRC-20 system, ordinals replace the smart contracts found in ERC-20 and its derivatives.

What Does BRC-20 Do?

So, what exactly does BRC-20 do, and why is it important? The answer lies in the inherent security of the Bitcoin blockchain. Many blockchain experts agree that Bitcoin is the most secure network, and its track record speaks for itself—Bitcoin has never been hacked.

With its unique structure, BRC-20 paves the way for developers to create fungible tokens on the Bitcoin blockchain. Already, many BRC-20 tokens have been created, with a significant number of them being meme tokens.

How is BRC-20 Different from ERC-20?

The main difference between BRC-20 and ERC-20 is that, unlike ERC-20, the BRC-20 standard does not rely on smart contract technology. Instead, it operates based on the Bitcoin Ordinals protocol, which makes it less complex but also more limited compared to standards that utilize smart contracts.

How Did BRC-20 Come About?

The BRC-20 token standard was created and published on March 8, 2023, by a programmer using the pseudonym Domo. Initially, it was conceived as an experiment to enable the issuance of fungible tokens on Bitcoin.

The first BRC-20 token was Ordinals (ORDI), which, like BTC, has a maximum supply of 21 million. The ORDI token quickly gained popularity, achieving a market cap of over $180 million at the time of writing.

Domo, the creator of BRC-20, remains active on Twitter under the handle @domodata. As both a blockchain analyst and a key figure in the Bitcoin and BRC-20 community, Domo continues to engage with enthusiasts and developers alike.

By leveraging the robust security of the Bitcoin blockchain and the innovative Ordinals protocol, BRC-20 has opened new avenues for creating and trading fungible tokens. Whether you are a developer or an enthusiast in the cryptocurrency space, understanding BRC-20 is essential as it continues to shape the future of digital tokens.

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