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- 1 Bitcoin ordinals and BRC-20 token standards are revolutionizing the Bitcoin blockchain network
- 2 Renewal of people’s interest for investing in Bitcoins
Since the introduction of Bitcoin ordinals, fungible tokens have become quite popular. This simultaneously led to the discovery of the BRC-20 token standard across the Bitcoin blockchain. The interchangeability and equal worthiness of fungible tokens alongside cryptocurrencies has skyrocketed their importance. Domo, an anonymous on-chain analyst, created the BRC-20 token after getting inspired by the ERC-20 token of the Ethereum blockchain. Even though both sound similar, the BRC-20 token doesn’t use the feature of smart contracts, unlike ERC-20.
A detailed analysis of the BRC-20 token standard
Using this BRC-20 token standard, you can create or transfer any fungible token based on the Bitcoin ordinal protocol. From Jan 21, 2023, the BRC-20 token standard was first implemented across the network. A software engineer named Casey Rodarmor was the one who supervised the integration of this protocol.
Once the upgradation of the Bitcoin network was announced, users were allowed to inscribe images or text on Satoshi tokens. Java Script object Notation was the name given to such inscriptions as 100 million satoshis make up one BTC. The non-fungibility feature of these tokens meant they were unique, and at the very least, with contrasting attributes.
As per different reports, it has been found that until now, 14,200 plus tokens have been inscribed using the BRC-20 standard. However, this number could rise even higher as its popularity has surged astonishingly.
How come the BRC-20 standard touched such heights this quickly?
Several factors can be associated with BRC-20’s captivating rise to prominence. Here are some of those factors which have been summarised in the points below:
- Adaptability to the Bitcoin network
One of the prime reasons behind the BRC-20 standard gaining such popularity can be linked to its adaptability to the Bitcoin network. This quality allowed Bitcoin ordinals and BRC-20 tokens to incorporate themselves across the blockchain smoothly. Meanwhile, users can also use the infrastructure within the Bitcoin blockchain to increase these BRC-20 tokens’ adaptability with the community.
- Easy to use
Unlike ERC-20 or other token standards, smart contracts are used for multiple purposes. Here in the BRC-20 token standard, you wouldn’t have to learn the configuration behind smart contracts. BRC-20 token standard follows a simple tokenization protocol that allows people to mint their tokens without possessing technical expertise.
- Enhanced security
Regarding security inside the blockchain network, none of the other mechanisms can come even close to it. The integrity on which the BRC-20 token conducts its operations can always be safeguarded using blockchain security features.
Conclusion
Blockchain technology is rapidly evolving in front of our eyes. Thus, the future of the BRC-20 token standard looks quite bright. People are flocking to the Bitcoin blockchain network after its initial down period during the last year. Many people had lost hope in the Bitcoin blockchain network at the time. However, everything changed after the introduction of Bitcoin ordinals and BRC-20 tokens.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
