Ever since it was created, blockchain technology has brought about a revolution in the world of finance and cryptocurrency. With the advent of various blockchain-based projects, new tokens and standards are continuously being developed to facilitate a smoother and more secure cryptocurrency ecosystem.
One such token standard that has been trending off late is the BRC-20 token.
In this blog, we will explore what a BRC-20 token is and how it differs from other more popular token standards like the ERC-20.
- BRC-20 is a new token standard that is based on the Bitcoin blockchain.
- It uses Ordinals to write JSON data that is used to deploy, mint, and transfer tokens.
- The benefits of this token standard are immense. From increased security to reduced costs.
- A lot of different tokens have been created using this token standard including a lot of meme coins like $PEPE, $MEME, $PIZA.
- Overall, the trend is only increasing as more and more people are adopting this new token standard and building on top of it.
What is a BRC-20 token?
A BRC-20 token is a standard for tokens on the Bitcoin blockchain that enables the creation of smart contracts. It is similar to Ethereum’s ERC-20 token standard, but unlike ERC-20 tokens, which are based on the Ethereum blockchain, BRC-20 tokens are based on the Bitcoin blockchain.
The BRC-20 token was created by Twitter user @domodata on March 8th, 2023.
BRC-20 tokens are highly versatile and can be used to create a wide range of tokens, including utility tokens, security tokens, and even meme coins. So many meme coins have been created in the past few weeks, using this new BRC-20 token standard. The collective market cap of these tokens hit $1 billion at its peak.
One of the most significant advantages of the BRC-20 token standard is that it allows for the creation of smart contracts on the Bitcoin blockchain, which enables developers to create more complex and innovative blockchain-based applications.
How does it work exactly?
The creation of the BRC-20 token standard was made possible with the creation of Ordinals, or as they are more popularly known Bitcoin NFTs. Ordinals allow users to explore, transfer, and receive individual satoshis, which may include unique inscribed data such as videos and images.
BRC-20 uses Ordinals to write JSON data into Satoshis. It is this JSON data that is used to deploy, mint, and transfer tokens.
After deploying a BRC20 token, users can mint or transfer this token. However, the process does not work like on Ethereum. There is no “smart contract” on Bitcoin like there is on Ethereum. All of the data must be integrated and shared in JSON files. So it’s not as simple and intuitive as it is on Ethereum. At least not yet.
If it’s not as intuitive then how exactly are they useful? Let’s understand that in detail.
What are the benefits of BRC-20 tokens?
The BRC-20 token standard offers several benefits, including:
- Increased security: BRC-20 tokens are based on the Bitcoin blockchain, which is considered to be one of the most secure blockchains in existence. This provides an additional layer of security for BRC-20 tokens, making them less susceptible to hacks and attacks.
- Interoperability: BRC-20 tokens are designed to be interoperable with other Bitcoin-based tokens and platforms. This means that BRC-20 tokens can be easily integrated with other blockchain-based applications and platforms, allowing for more seamless transactions and interactions.
- Flexibility: BRC-20 tokens are highly flexible and can be used to create a wide range of tokens, including utility tokens, security tokens, and even meme tokens. This versatility makes BRC-20 tokens an attractive option for developers looking to create innovative blockchain-based applications.
- Reduced costs: BRC-20 tokens are based on the Bitcoin blockchain, which is a well-established and widely used blockchain. This means that the cost of developing and deploying BRC-20 tokens is lower than developing and deploying tokens on a new or less-established blockchain.
These benefits are part of the reason why this new token standard has been trending higher and higher every day since its creation. The total number of transactions of all these tokens has reached close to 350k and it’s only set to go higher from here.
Top BRC-20 Tokens and Where to Buy Them
This is the first-ever token created using the BRC-20 token standard. Similar to Bitcoin, ORDI also has a total supply of 21 million ORDI. Most of it has already been airdropped to the community and the market cap had already reached close to $500 million.
This is a meme coin based on the popular internet meme- Pepe The Frog. This token is not the same as the other $PEPE token that has been taking the internet by storm with a billion dollars in market cap. The $PEPE on BRC-20 is a token with a market cap of $5 million currently.
PIZA is a meme coin based on the BRC20 standard. It was created in March 2023 and holds no intrinsic value. It also has no expected financial return and was created mainly for entertainment purposes, like most meme coins.
As the name already suggests, this is yet another meme coin created using the BRC-20 standard. Unlike the other two popular BRC-20 tokens, MEME only has a total supply of 99,999 MEME. Most of it is held by just a few wallets.
Given the reduced supply, the current price of the token is quite high compared to the rest of the meme coins. This token can also be bought on Gate.io and other centralised exchanges like BitGet.
Which Wallets Can Hold BRC-20 Tokens?
Currently, the BRC-20 tokens can be held in two types of wallets:
- Exchange Wallets
- Ordinals or Bitcoin Wallets
If these tokens are listed on any of the centralized crypto exchanges then, the BRC-20 tokens can be held in the respective exchange’s wallet. Some of the notable centralized exchanges that have these tokens listed are:
Ordinals or Bitcoin Wallets
Since the BRC-20 is a token standard created on the Bitcoin blockchain, most of these tokens can be held on a Bitcoin wallet as well.
Apart from this, the recently made Ordinals Wallet which was created to hold Ordinals (a.k.a Bitcoin NFTs) can also hold the BRC-20 tokens because both are created for the Bitcoin Network.
In conclusion, the BRC-20 token standard is a versatile and secure token standard that is based on the Bitcoin blockchain.
- It enables the creation of “smart contracts” using JSON files and allows for the creation of a wide range of tokens, including utility tokens, security tokens, and even meme tokens.
- The benefits of the BRC-20 token standard include increased security, interoperability, flexibility, and reduced costs.
- Some of the top tokens created using the BRC-20 standard include $PIZA, $ORDI and $MEME.
- As blockchain technology continues to evolve, the BRC-20 token standard is likely to play an increasingly important role in the cryptocurrency ecosystem.
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