BRC-20
Web3 / cryptocurrency types
BRC-20 is an experimental token standard that enables the creation of fungible tokens on the Bitcoin blockchain using the Ordinals protocol. Unlike traditional tokens built on smart contract platforms, BRC-20 tokens are created by inscribing JSON data directly onto individual satoshis (the smallest Bitcoin units). This approach leverages Bitcoin's immutability and security while allowing developers to deploy tokens without modifying Bitcoin's core protocol. However, BRC-20 remains experimental and faces scalability limitations due to Bitcoin's block size constraints and transaction throughput. Example: Ordinals launched the first BRC-20 token called "ordi" in March 2023, which quickly became one of the most traded Bitcoin-native tokens and demonstrated significant market demand for Bitcoin-based token standards. Why it matters for cryptocurrency: BRC-20 expanded Bitcoin's utility beyond store-of-value use cases, proving that Bitcoin could host decentralized applications and token economies while maintaining its core security properties and decentralization.
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