If you're involved in the crypto world, you've likely heard of ERC-20 tokens on Ethereum. They've made transactions and digital assets more accessible. But have you heard of BRC-20? It's a new experimental token standard inspired by ERC-20 tokens that aim to improve the fungible token experience. BRC 20 allows developers to build and transact with tokens seamlessly and efficiently using the Ordinals platform.
What makes BRC 20 different is that it stores tokens on the Bitcoin base chain, making it versatile. Using ordinal inscriptions of JSON data, developers can easily deploy, mint, and transfer BRC-20 tokens with the help of Ordinals and Inscriptions.
What Is a BRC 20 Token?
BRC-20 is an experimental token standard on Bitcoin that uses ordinal inscriptions.
Should Bitcoin only be digital gold, or should it support more advanced features? The emergence of ordinal NFTs sparked curiosity in leveraging the Bitcoin network for storing unchangeable data.
An interesting experiment in this realm is the development of BRC-20, which aims to create fungible tokens directly on Bitcoin. BRC-20 tokens offer a clever workaround for Bitcoin's limited programmability by utilizing ordinal inscriptions.
In this article, we will explore BRC 20 tokens, understand how they function, and assess their potential as a token standard on Bitcoin.
Related: Pi Coin Value in 2030: Predictions and Analysis
What Can BRC 20 Tokens Be Used For?
BRC 20 tokens can be freely spent like any other cryptocurrency. While further applications are being explored, here are the current use cases for BRC-20 tokens.
P2P Transfers:
You can easily transfer BRC-20 tokens to others as a form of value. These tokens operate on the Bitcoin network, allowing seamless movement between wallets, regardless of their location. Similar to Bitcoin, BRC-20 tokens are decentralized digital cash that can be exchanged between individuals. Transactions occur efficiently on the Bitcoin network, with fees charged in Bitcoin.
In the future, BRC-20 tokens may be utilized for making payments on commercial platforms and by service providers seeking flexible payment solutions.
Decentralized Finance:
DeFi on the Bitcoin blockchain is still in its early stages, not yet reaching the same level as DeFi on Ethereum. However, BRC-20 tokens could pave the way for a decentralized financial system on Bitcoin. Unlike Bitcoin, which has limited flexibility, BRC-20 tokens can integrate with DeFi protocols.
There are numerous potential use cases for BRC-20 tokens in DeFi protocols built on the Bitcoin network. These tokens can be incorporated into decentralized exchanges, lending protocols, and yield farming systems if successful integration is achieved.
For instance, Ordinalswallet.com has already developed a platform for decentralized minting and trading of BRC-20 tokens and ordinals NFTs. Similar platforms are expected to increase as BRC-20 tokens gain relevance.
Another potential use case involves the development of a BRC-20 Bitcoin peg and bridge, facilitating the introduction of Bitcoin into DeFi systems and connecting other blockchains to the Bitcoin network.
Tokenization:
Tether and other projects have used asset creation systems to create decentralized representations of fiat currencies and real-world assets like gold and real estate. BRC-20 tokens can serve a similar purpose and may become a favored choice for tokenizing real assets due to their structure.
Through JSON code, the properties of a BRC-20 token can be defined based on what is being tokenized, including supply and minting limits. The decentralized issuance process of BRC-20 tokens offers advantages in tokenization that are not easily achievable using smart contracts.
Top BRC20 Tokens List in 2023
Some of the top BRC-20 tokens in 2023 are as follows,
1. Ordi
2. Pepe
3. Meme
4. Shib
5. Moon
Ordi:
Ordi is currently the most expensive BRC 20 coin, priced at $9.46 per token. It holds a significant market capitalization lead of over 71% in the BRC20 token market, amounting to $200 million. Originally developed for amusement, Ordi's popularity and the hype surrounding meme tokens have recently caused its value to surge.
Pepe:
Pepe, another BRC 20 coin, has a market capitalization of approximately $17.6 million. With Pepe, investors now have the opportunity to diversify their portfolios and participate in the exciting world of DeFi. It is a unique token featuring a funny frog picture and related information. People can create different amounts of Pepe and share them by sending a message along with the desired number of Pepe tokens and a new picture.
Meme:
Meme coins are gaining prominence on the Bitcoin network, with a recent surge in popularity. Due to congestion on Ethereum, these new meme currencies are now being created using the BRC-20 standard. The Bitcoin network is currently witnessing a rise in BRC-20 meme coin fervor, as indicated by trends.
Shib:
Shiba Inu has greatly benefited from its transfer to the BRC20 blockchain in two ways. Firstly, SHIB holders can avoid paying high gas fees during transactions. Secondly, crypto investors holding SHIB can carry out more transactions thanks to the minimal transaction fees. This increased activity and large transactions involving the Shiba Inu coin will give a significant boost to the project.
Moon:
Moon is another BRC-20 token available for trading. Its aim is to enhance and expand an established blockchain to create an environment that fosters social and academic connections. The Moon ecosystem serves as a hub for fast and reliable financial transactions, facilitating the implementation of groundbreaking businesses. Any two parties with MOON tokens in their personal wallets can instantly send them to each other without any additional procedures.
Advantages of BRC-20 Tokens:
Interchangeability:
BRC-20 tokens offer simplicity and interchangeability, allowing for easy trading on exchanges. These tokens are fungible and can be traded for other assets. They provide a user-friendly way to participate in the blockchain ecosystem, even for those who may be hesitant about using regular Bitcoin.
Security:
BRC-20 tokens benefit from the strong security of the Bitcoin system, known for its resilience against hacking attempts. These tokens employ robust proof-of-work techniques to safeguard them from potential attackers. It's like having a special lock that ensures everything remains secure.
Adaptability:
BRC-20 tokens seamlessly integrate with Bitcoin and can be used together without major issues. Individuals looking to innovate and create new possibilities with Bitcoin face minimal obstacles when utilizing BRC-20 tokens.
Read more... BRC-20 Tokens