The BRC-20 is an experimental token standard used for the creation of fungible assets on the Bitcoin mainnet. It was created by an anonymous on-chain analyst named Domo in March 2023². The standard works by utilizing the Ordinals protocol to inscribe code into individual satoshis, marking them as standalone assets¹. The BRC-20 token standard utilises Ordinals inscriptions of JSON data to deploy, mint, and transfer tokens². So far the main use case has been the creation of memecoins¹.
The issuance of the BRC-20 token has several implications for the Bitcoin blockchain. These impacts include increased transaction costs, controversy, and a growing need for scaling solutions¹. The share of Ordinals (including BRC-20) in transactions on Bitcoin increased from 10% in January 2023 to 60% in May 2023¹.
Source: Conversation with Bing, 24/05/2023
(1) What Is the BRC-20 Token Standard for Bitcoin? – Crypto.com. https://crypto.com/university/brc-20-token-standard-bitcoin.
(2) What is the BRC-20? Bitcoin s Standard Explained Simply. https://coinbrain.com/dictionary/what-is-the-brc-20-bitcoin-s-standard-explained-simply.
(3) BRC-20 Explained: How Bitcoin Tokens Work and the … – CoinDesk. https://www.coindesk.com/learn/brc-20-explained-how-tokens-on-bitcoin-work-and-why-they-are-controversial/.
Source: Conversation with Bing, 24/05/2023
(1) What is BRC-20?Possibilities and Challenges of Bitcoin Token Standard. https://ourbitcoinnews.com/what-is-brc-20possibilities-and-challenges-of-bitcoin-token-standard/.
(2) BRC-20 Explained: How Bitcoin Tokens Work and the … – CoinDesk. https://www.coindesk.com/learn/brc-20-explained-how-tokens-on-bitcoin-work-and-why-they-are-controversial/.
(3) BRC-20 Tokens: The Transformation of the Bitcoin Ecosystem. https://maddevs.io/blog/role-of-brc-20-in-shaping-the-future-of-digital-assets/.