Blockchain technologies and Cryptocurrencies have been the talk of the town that are rising our current economic system. Cryptocurrencies provide various advantages to the world like effortless transactions, fewer transaction fees, simplified transfer of digital assets, secure transactions, and easy access to funds. It is one of the most booming technologies in the world and it has become popular among tech giants and investors, influencing many people to invest in cryptocurrencies.
One such area for crypto businesses to explore is BRC20 tokens. We are all aware that Bitcoin, the first ever issued cryptocurrency, has ruled the crypto industry since its launch in 2009, with a recent market value of around 550 billion USD. Despite the crypto bear market and current disagreements, the BRC-20, a Bitcoin network token standard, has taken the crypto world by storm since its inception. It has grown rapidly since its birth, with a total market valuation of more than $991 million as of May 9, 2023.
What Are BRC-20 Tokens?
In the crypto market, the recent emerging trend is the BRC20 token standard, especially after the current introduction of meme coins such as Memetic (MEME) and Pepe (PEPE).
BRC20 tokens are tokens that are constructed on the Bitcoin Blockchain Network. The BRC20 token is an experimental token created for Bitcoin Network using the Ordinal protocol. Bitcoin is a public blockchain platform that permits users to construct and exchange digital assets. The BRC20 token is similar to the ERC20 token standard where the BRC20 is used on Bitcoin whereas the ERC20 is used on the Ethereum Network. BRC20 tokens can be utilized for several purposes, including payment, fundraising, and trading.
How Are BRC-20 Tokens Created?
Following the development of the Bitcoin Ordinals protocol in January 2023, which allowed non-fungible tokens (NFTs) to be inscribed on satoshis (sats), there has been speculation regarding whether fungible tokens may be developed on Bitcoin. BRC-20 token standards were created in March 2023 by an anonymous programmer named Domo to facilitate the minting of fungible tokens on Bitcoin.
The first BRC-20 token to be released was called "ordi." Bitcoin wallets immediately added BRC-20 token support. Several new BRC-20 coins, many of which are meme tokens, were released in the months that followed. Some BRC-20 tokens have had spectacular price gains and substantial market caps as of May 2023. The demand for BRC-20 tokens increased Bitcoin transaction costs and generated substantial congestion on the Bitcoin network.
How Do BRC-20 Tokens Work?
There has never been a cryptocurrency supported on the Bitcoin network but Bitcoin itself. BRC-20 tokens have been a help to those who sought to use the blockchain in novel ways. It is critical to understand how BRC-20 tokens function.
It is necessary to understand how Bitcoin ordinals function to comprehend BRC-20 tokens properly. The ordinal protocol is a technique for numbering satoshis and enables the users to attach additional data to satoshis in a process called “inscription”.
BRC20 tokens utilize Ordinals inscriptions of JavaScript Object Notation (JSON) data to install token contracts, mint, and transfer tokens. Recently, the BRC-20 token standard provides for the creation of a BRC-20 token with the deploy function, the minting of an amount of BRC20 tokens with the mint function, and the transfer of an amount of BRC-20 tokens with the transfer function.
The working process of BRC20 tokens is similar to Ethereum’s ERC20 tokens. Each token in this network has the same value due to its fungible property and also it is interchangeable with the same type of other tokens. BRC20 tokens utilize the ordinal protocol to enable the development and token transfer on the Bitcoin Blockchain.
Difference Between BRC20 & ERC20 Token Standard
- Apart from the similarity in their names, there are some differences between these two tokens.
The BRC20 and ERC20 token standards are developed on two different blockchain networks, Bitcoin and Ethereum according to the respective consensus algorithm. - The proof-of-stake mechanism is used by Ethereum to validate all ERC20 token transitions whereas Bitcoin utilizes the older PoW (proof-of-work) mechanism, where the miners validate transactions by solving complex computational problems.
- ERC-20 and BRC-20 differ significantly in another important way: the former makes use of smart contracts, whilst the latter does not. Ethereum is well-known for its use of smart contracts, which are programs that autonomously execute transactions depending on predetermined circumstances. Inscriptions in the Ordinals protocol are used by BRC-20 tokens to behave as fungible assets rather than smart contracts.
Benefits Of BRC-20 Token
Although the BRC-20 token standard is still in its early stages, its potential benefits are becoming more widely recognized. Some of the benefits of utilizing BRC-20 are as follows:
- Security: Bitcoin blockchain network is utilized to operate BRC20 tokens and incorporates the security features of the Bitcoin protocol. Bitcoin is one of the safest and most secure blockchains with its extensive miners and its Proof-of-work (PoW) mechanism.
- Compatibility: BRC-20 tokens are natively interoperable with the Bitcoin network, which simplifies their entry into the Bitcoin ecosystem. Furthermore, Bitcoin developers may simply include and design BRC-20 tokens.
- Fungibility: BRC-20 tokens are deemed fungible, allowing for easy trading across several platforms and providing a clear alternative to Bitcoin for newbies.
What Makes Clarisco - The Best Choice For Developing The BRC20 Token
Grasp the advantages of a rising trend in the crypto market and develop your own token utilizing the BRC20 token standard to establish a name for yourself in the industry. At Clarisco, we have vast knowledge and expertise in blockchain networks, and we are always on the lookout for new technological breakthroughs that will help us better serve our clients.
Meanwhile, our main services are Dapp creation, cryptocurrency development, and decentralized platform development, we also provide BRC20 token development services. Our qualified professional teams offer you personalized and effective outcomes that meet your business needs and expectations.
With the help of token development expertise, you can launch your BRC20 token on time prioritizing security and safe transactions. Get in touch with us instantly and learn more about the BRC20 tokens.
