How Did BRC-20 Come About? What Does BRC-20 Do?

A brand new token has joined the checklist of token requirements within the cryptocurrency world: BRC-20. Impressed by the ERC-20 token commonplace of the Ethereum (ETH) blockchain, BRC-20 affords a variety of capabilities. Due to the Ordinals protocol, BRC-20 makes it doable to mint tokens on the Bitcoin (BTC) blockchain.

On this article, we’ll take a more in-depth take a look at what the BRC-20 commonplace does and focus on its origins.

What’s BRC-20?

BRC-20 is a token commonplace based mostly on the Ordinals protocol that permits the creation of NFTs on the Bitcoin community. Though it’s impressed by the ERC-20 commonplace, BRC-20 doesn’t use good contracts like ERC-20 or different Ethereum requirements. As an alternative, BRC-20 permits customers to retailer a script on the Bitcoin blockchain and bind tokens to particular person satoshis.

Every satoshi is then assigned a novel quantity, turning them into non-fungible tokens just like NFTs. These uniquely numbered satoshis are known as ordinals. Within the BRC-20 system, ordinals change the good contracts present in ERC-20 and its derivatives.

What Does BRC-20 Do?

So, what precisely does BRC-20 do, and why is it necessary? The reply lies within the inherent safety of the Bitcoin blockchain. Many blockchain specialists agree that Bitcoin is essentially the most safe community, and its observe report speaks for itself—Bitcoin has by no means been hacked.

With its distinctive construction, BRC-20 paves the way in which for builders to create fungible tokens on the Bitcoin blockchain. Already, many BRC-20 tokens have been created, with a big variety of them being meme tokens.

How is BRC-20 Totally different from ERC-20?

The principle distinction between BRC-20 and ERC-20 is that, in contrast to ERC-20, the BRC-20 commonplace doesn’t depend on good contract expertise. As an alternative, it operates based mostly on the Bitcoin Ordinals protocol, which makes it much less advanced but in addition extra restricted in comparison with requirements that make the most of good contracts.

How Did BRC-20 Come About?

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

The primary BRC-20 token was Ordinals (ORDI), which, like BTC, has a most provide of 21 million. The ORDI token rapidly gained recognition, reaching a market cap of over $180 million on the time of writing.

Domo, the creator of BRC-20, stays energetic on Twitter beneath the deal with @domodata. As each a blockchain analyst and a key determine within the Bitcoin and BRC-20 neighborhood, Domo continues to interact with lovers and builders alike.

By leveraging the strong safety of the Bitcoin blockchain and the modern Ordinals protocol, BRC-20 has opened new avenues for creating and buying and selling fungible tokens. Whether or not you’re a developer or an fanatic within the cryptocurrency house, understanding BRC-20 is crucial because it continues to form the way forward for digital tokens.