What Are BRC-20 Tokens? Explaining the Bitcoin Memecoin Hype

In the same way, as the BRC-20 token standard enjoys the benefits of the Bitcoin network, they are still going to be affected in the areas where Bitcoin lags behind. This is because Bitcoin is not as scalable as some other blockchains like Ethereum. As BRC-20 tokens keep gaining popularity and awareness there are concerns about congestion, which could lead to potential higher gas or transaction fee issues. Cryptocurrency exchanges such as Gate.io are already adapting and listing BRC-20 tokens.

Top BRC20 Tokens on Bitcoin Blockchain in 2024

According to Coingecko, the total market cap of BRC20 tokens is over $400 million. Inspired by Ethereum’s ERC-20 token standard, which has revolutionized the world of tokenization, BRC-20 tokens have made their mark by leveraging the capabilities of the Bitcoin blockchain. Unlike ERC-20 tokens, BRC-20 tokens operate independently of smart contracts and offer a simplified feature set. They offer users the ability to mint and trade tokens by inscribing data, like a string of words or pictures, onto satoshis, the smallest unit of Bitcoin. JSON data specifies the features of the token, such as its name, symbol, supply, and distribution. The BRC-20 token standard is still in its infancy and was created as a “fun experimental standard” to demonstrate that you can mint digital tokens on Bitcoin.

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1. Although ERC-20 tokens inspired the creation of BRC-20 tokens, there are differences in their design.
2. BRC-20 has taken the Bitcoin community by storm since @Domodata created it on March 8, 2023.
3. BRC-20 is an experimental token standard – somewhat similar to ERC-20 on Ethereum – that enables the minting and transferring of fungible digital currencies on the Bitcoin blockchain.
4. Like stablecoins representing fiat currencies, BRC-20 tokens can be utilized to tokenize real assets like gold, logistics, or real estate.
5. Social media platforms like Twitter can also be a great way to stay up-to-date with the latest trends and news in the world of BRC-20.

The fact that BRC-20 tokens are built on the most secure blockchain in the crypto space Bitcoin, should help you understand these tokens are going benefit from the security that the Bitcoin Blockchain provides. As much as Ethereum’s ERC-20 tokens inspired the creation of BRC-20 tokens, they operate differently from smart contracts. They leverage the capabilities of the Bitcoin blockchain and coexist alongside Bitcoin, opening up new possibilities https://cryptolisting.org/ beyond NFTs. In the future, BRC-20 tokens might lead to the creation of decentralized applications (dApps) for making payments on commercial platforms with flexible payment solutions. For example, if you wanted to create a collection of 100 hypothetical $RANDO  BRC-20 tokens, you’d mint the collection by inscribing one sat with the relevant JSON data. JSON data can be used to define the token name, symbol, supply and other properties.

Best Web3 Wallets in 2024: A Complete Guide

This also allowed users to break down complex transactions into simpler forms, making layer two scalability solutions like lightning more efficient. PEPE gained popularity with the success of the Ethereum-based PEPE meme token. The token had a surge in value in the early stages of its launch, which provided an ROI of 38,900% for early adopters, stimulating enthusiasm for the BRC-20 standard it was built on. The fame around PEPE sparked a considerable rise in the amount of memecoins working with the BRC-20 standard.

Funding Your Wallet

This network standard is a promising development for the Bitcoin ecosystem, as they offer new possibilities for tokenization, DeFi, NFTs, and more. It is one of the many BRC20 tokens that emerged after the Bitcoin Taproot upgrade, which enabled users to add data to satoshis, the smallest unit of Bitcoin. It uses a technique called Ordinal inscriptions to create and manage token contracts, as well as to send and receive tokens. Moreover, BRC-20 tokens leverage the Ordinals protocols while SRC-20 tokens are created using the STAMPS (Secure Tradeable Art Maintained Securely) protocol. BRC-20 prioritizes fast transaction speed and affordability, while SRC-20 is more resource-intensive and more secure when it comes to immutability.

Ordinals Wallet

As BRC-20 tokens progress, more significant use cases will likely emerge, expanding their role within the crypto space. Due to the fact that all transactions on the blockchain are scripts available to the public, it is easy to analyze and follow the signature of each Bitcoin transaction. The Taproot upgrade also allowed every transaction to appear basically the same on the blockchain which made it difficult to track one transaction separate from the other.

As of December 2023, over 55,000 distinct BRC-20 tokens have been created, indicating a robust and growing ecosystem. At its peak, almost 400k BRC-20 transactions took place on the Bitcoin blockchain in May 2023, while a total of almost 40 million BRC-20 transactions have occurred since launch. The total market cap of BRC-20 tokens exceeds $451 million, and they enjoy a trading volume of over $145 million as per data on Coinmarketcap at the time of writing. BRC20 is a new token standard that allows developers to create fungible tokens on the Bitcoin blockchain.

BRC-20 tokens are a form of fungible assets that exploit a loophole in Bitcoin’s 2021 Taproot upgrade. The Taproot upgrade was created to solve two problems on Bitcoin’s blockchain, which are privacy and speed, by increasing transaction capacity and reducing transaction size. ORDI was the first BRC-20 token released, with a limited supply of 21 million. These tokens were all created in 18 hours, but there were attempts to mint 1.5 million more than what was made.

BRC-20 tokens are fungible digital tokens minted on the Bitcoin blockchain, enabled by the emergence of the Ordinals protocol. Operating on the Bitcoin blockchain and adhering to the BRC-20 standard, these tokens bring the concept of fungibility, familiar with Ethereum’s ERC-20 tokens, into the Bitcoin sphere. BRC-20 tokens allow the creation, minting, trading, and transfer of fungible tokens or assets on the Bitcoin blockchain through the Ordinals protocol. The Bitcoin Ordinals protocol is a numbering system that allows users to attach extra data to satoshis, the smallest unit of Bitcoin.

We have provided two alternatives here – one option is to fund through a centralised exchange and another in a decentralised manner. For the purposes of this article we have chosen the OKX wallet, but other wallets should have similar user experiences. Please note that BRC20 tokens are still experimental and involve risks like volatility, hacking, regulatory uncertainty, and technical issues. It wants to mix memes’ fun and humorous side with blockchain technology’s severe and innovative side.

When it comes to BRC-20 token transactions, it’s important to know all the fees you’ll encounter to avoid any surprises. BRC-20 tokens have caused a legitimate storm in the Bitcoin community book value of equity per share bvps and beyond. BRC-20 tokens are gaining traction within the DeFi ecosystem, underscored by the late 2023 memecoin rally led by PEPE, with most BRC-20 tokens being memecoins.

If you want to explore the world of native Bitcoin L1 assets, Xverse is your go-to wallet. In conclusion, BRC-20 tokens provide a novel avenue for tokenization within the Bitcoin blockchain, expanding its utility beyond traditional cryptocurrency transactions. They offer a seamless integration of additional data onto satoshis, enabling a broader range of use cases and applications. To buy, sell, and trade BRC-20 tokens you need Bitcoin in your wallet for gas fees and Bitcoin to buy the BRC-20 token. So go to any centralized exchange of your choice like Binance, OKX, or ByBit to buy your Bitcoin, copy your UniSat wallet, paste it into the recipient address on the centralized exchange, and send the Bitcoin.

Like ERC-20 tokens, users who intend to sell their acquired BRC-20 assets can either send them to a crypto exchange and conduct a P2P transaction or auction the assets in a decentralized pool. The BRC-20 token standard also doesn’t support smart contracts, a feature that’s made ERC-20 tokens popular in the DeFi community. Smart contracts enable developers to produce programmable money, automating various financial processes and creating new types of financial products. However, BRC-20 tokens like ORDI, PEPE, PUNK, and MEME are taking the market cap to new heights. BRC-20 tokens represent a noteworthy exploration into expanding the functionality of the Bitcoin blockchain. The Ordinals protocol, coupled with the Taproot upgrade, has paved the way for fungible tokens on Bitcoin, challenging conventional narratives surrounding the network’s capabilities.

Made possible by the Ordinals protocol, BRC-20 tokens can be created, transferred, and traded on Bitcoin, birthing in a new class of Bitcoin-native L1 assets. Afterward, the user can determine where to purchase the tokens, either through a centralized exchange or a decentralized platform like Ordswap. The integration of Unisat with BRC-20 and Bitcoin’s taproot made it easier for users to create, manage and trade these tokens with ease. In another innovative twist in the crypto space, BRC-20 tokens are currently the trend on the Bitcoin network.

By understanding these trends and how to participate in them, you will find the promising gems with more confidence. However, while it’s an exciting journey, it’s wise to tread carefully and manage risks as you explore these new trends. BANK BRC Token is another meme token based on the Bitcoin base chain that uses the Ordinals protocol to create and trade fungible assets. Piza tokens have a maximum supply of 21m and a market cap of about $3.56 million. Piza tokens are among the many BRC20 tokens created as an experimental way to make and transfer tokens on the Bitcoin network.

This is a supply-and-demand issue; as nodes are a fixed resource and demand for their time is fluctuating, fees will rise alongside demand. The nodes are essential for keeping Bitcoin’s blockchain running, and they are incentivized by block rewards and transaction fees to do their work. Currently, the BRC-20 protocol has very limited functionality compared to ERC-20. Right now users are limited to only minting, deploying and transferring tokens. The emergence of standards like BRC-20 introduces the concept of tokenization to the Bitcoin network, extending its capabilities beyond being a decentralized digital currency.

Since ORDI was established, several startups have created applications that enable people to generate BRC-20 tokens and store them in their wallets. BRC-20 tokens don’t incorporate smart contracts, which sets them apart from the ERC-20 token standard running on the Ethereum network. As a result, the capabilities of BRC-20 tokens may be limited, making them less desirable for some applications when compared to those built on the Ethereum network. BRC-20 has taken the Bitcoin community by storm since @Domodata created it on March 8, 2023. BRC-20 is a fungible token standard made explicitly for the Bitcoin blockchain. Although highly experimental, the simplicity of the BRC-20 standard, without the need for complex smart contracts, allows for easier tokenization of assets on the Bitcoin network.

This uncertainty could deter developers and users from adopting BRC-20 tokens until the standard is more established and reliable. BRC-20 takes a page out of this book, made possible because of Bitcoin’s November 2021 Taproot upgrade, which enabled ordinal inscriptions, the behind-the-scenes tech plumbing that make BRC-20 tokens work. While the standard is still in the experimental phase, its growing acceptance and utilization indicate potential growth in the medium and long term. The growing number of projects adopting BRC-20 tokens highlights their potential to reshape the Bitcoin blockchain with new use cases and innovative products. Based on our research, some of the best BRC20 projects are PEPE, ORDI, and VMPX.

ERC-20 tokens inspired the concept, and it gives users the ability to inscribe data onto Satoshis. With the introduction of Ordinals and the BRC-20 token standard, the potential for new and exciting possibilities has been opened up even further. BRC-20 tokens offer a simple yet powerful way to create and manage tokens on the Bitcoin blockchain. It allows each satoshi within the Bitcoin network to carry a distinct identity or file — a process known as inscription. Many believe these issues will need to be addressed for BRC-20 to gain broader adoption and compete with established token standards like ERC-20. These transaction fees go to the nodes on the blockchain, usually miners, to facilitate the transaction.