What is BRC-20? Top BRC-20 tokens in the market

BRC-20 is a fungible token standard created for testing on the Bitcoin network. Tokens created according to this extremely special standard are recorded directly into satosh, the smallest unit of Bitcoin.

If you want to know more information about the BRC-20 token standard, stay tuned for upcoming content from AZCoin now!

What is BRC-20?

BRC-20 can be understood as a fungible token standard created for testing on the Bitcoin network. According to research, this standard was created in early March 2023 by Domo, a relatively mysterious blockchain analyst.

BRC-20 tokens are special because they all possess the same internal function and value, meaning they can also be interchangeable if desired. Another unique feature of the BRC-20 standard is the implementation of attaching token information to satoshi, the smallest unit of Bitcoin.

With the advent of the BRC-20 standard, great opportunities have opened up for the development of decentralized finance (DeFi) applications, thereby creating more development opportunities for new applications on the platform. Bitcoin.

How does the BRC-20 token work?

BRC-20 token is created from the combination of Ordinals and Inscriptions protocols, whereby users are allowed to attach data to satoshi to form Ordinal NFT or BRC20 token. There are no restrictions on the data attached whether it is text, code, audio, or images.

The above process of attaching data is called inscribing, but not all tokens created from this method are BRC-20 tokens. They can only be created using JavaScript Object Notation (JSON) code, a format used to define all token information such as supply, limit,…

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What are the advantages and limitations of the BRC-20 token?

Advantage

• Ease of use: The BRC-20 tokens eliminate complex smart contracts, allowing for easier minting and transfer of new tokens even for novices without much experience.
• High security: The BRC-20 token has very strong security capabilities by taking advantage of the inherent security features of Bitcoin, one of the safest blockchains on the market.
• Potential: The BRC-20 token is currently being applied by many projects according to this standard, thereby attracting the attention of investors and new users.

Limitation

• No smart contract functionality: The BRC-20 token does not support smart contracts, which may significantly impact some token features and use cases under this standard.
• Dependence on the Bitcoin blockchain: The BRC-20 tokens rely heavily on the Bitcoin blockchain, thereby directly affecting the scalability, speed, and transaction costs of these tokens.
• Limited interaction: The BRC-20 tokens are specifically designed to operate within the Bitcoin ecosystem, which creates significant difficulties when users want to use alternative blockchain systems.

Top BRC-20 tokens in the market

Ordinals (ORDI)

Ordinals (ORDI) was the first token to introduce the BRC-20 standard and is also the most popular token to date under this standard.

Since its launch, ORDI has quickly become the center of attention. At one point, the value of this token increased by more than 850% in just one month.

SATS

SATS is the first BRC20 standard memecoin on the Bitcoin blockchain, this token operates mainly in the UniSat ecosystem.

This is also one of the BRC-20 tokens that are of great interest to the community, being the 3rd most held token currently.

PEPE

PEPE is also a meme coin project according to BRC20 standards, whereby the inspiration to form this token comes from the extremely famous image of Pepe the frog.

Perhaps because of its humor, this is one of the most popular meme coins in the world with a very large user community.

Conclusion

We have finally come to an end to all content related to the BRC-20 standard. Hope you like it. Besides, if you are interested in cryptocurrency, please take a look at the best crypto exchanges here.