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BRC-20 is an experimental token standard for the Bitcoin blockchain, similar to the ERC-20 standard used by Ethereum and other EVM-compatible networks. The main purpose of BRC-20 tokens is to enable the creation, minting, and transfer of fungible tokens on the Bitcoin blockchain. Unlike ERC-20, BRC-20 does not utilize smart contracts; instead, it operates using the Ordinals protocol, which allows for the inscription of JSON data on the Bitcoin base chain for deploying token contracts and managing transactions. This deviation from the traditional smart contract-based approach enables every token to be fungible, meaning each token is interchangeable with another of the same type【6†source】【10†source】.
As of the information available, the BRC-20 token market is quite significant, with a valuation exceeding $600 million and a daily trading volume over $200 million, contributed by over 14,000 BRC-20 tokens. This has led to the development of necessary tools in Bitcoin wallets to support this new class of tokens【7†source】. The BRC-20 standard has been gaining popularity, especially during the first half of 2023, and it has brought a variety of advantages to users and developers, such as the fungibility of tokens【8†source】【9†source】.
The first conceptualization of BRC-20 occurred in March 2023, with its tokens having no utility and being largely influenced by social media and community sentiment. Despite this, they have caught significant attention in the crypto community, with the market cap of all BRC-20 tokens reaching approximately $750 million as of May 2023【11†source】【13†source】. These tokens can be tracked and traded on platforms like BRC-20.io and Ordswap, though it is advised to exercise caution and conduct thorough research before engaging in trading due to the experimental nature of this token standard
BRC-20 stands as a groundbreaking experimental token standard introduced for the Bitcoin blockchain, inspired by the popular ERC-20 standard from the Ethereum network. Its emergence has enabled the Bitcoin community to mint, transfer, and engage with fungible tokens, a functionality previously limited to Ethereum and other smart contract-enabled blockchains.
Conceived in March 2023 and utilizing the innovative Ordinals protocol, BRC-20 deviates from the norm by forgoing smart contracts in favor of inscribing JSON data directly onto the Bitcoin base chain. This novel approach has allowed for the proliferation of over 14,000 BRC-20 tokens, contributing to a vibrant market with a valuation in excess of $600 million and substantial daily trading volumes.
Despite being influenced by community sentiment and social media buzz, the BRC-20 standard has amassed a significant following in the crypto community, drawing attention for its unique blend of Bitcoin’s robustness with the versatility of token creation and transfer. The market cap of BRC-20 tokens, as of May 2023, stood at roughly $750 million, signaling the crypto community’s growing interest in this innovative technology.
Investors and enthusiasts can monitor and trade these tokens on dedicated platforms like BRC-20.io and Ordswap. However, given the experimental nature of BRC-20, due diligence and cautious engagement are recommended for those looking to dive into this nascent yet promising segment of the cryptocurrency landscape.
