BRC20 or (Bitcoin Request for Comment 20) tokens are a new type of token that runs on the Bitcoin blockchain. They are created using the Ordinals protocol, which enables users to store a script file on Bitcoin and use that to attribute tokens to individual satoshis. Note that BRC-20 tokens embed JSON data into ordinal inscriptions and this will then give access to users who can now deploy, mint and then transfer these tokens.
It’s important to note that BRC20 tokens are still experimental, but they have seen a surge in popularity in recent months. There are now over 24,000 BRC20 tokens, and the market cap for BRC20 tokens has just crossed $500 million.
Reason for the Attention On BRC20 Tokens
There are a number of reasons for the rise of BRC20 tokens. One reason is that they offer a way to create fungible tokens on the Bitcoin blockchain. This is in contrast to non-fungible tokens (NFTs), which are unique and cannot be divided. Fungible tokens, on the other hand, can be divided into smaller units and are interchangeable. This makes them more versatile and could lead to a wider range of use cases.
Another reason for the rise of BRC20 tokens is that they are relatively easy to create. Anyone with a Bitcoin wallet can create a BRC20 token by using the Ordinals protocol. This has made it possible for a wide range of projects to create BRC20 tokens, including meme coins, gaming tokens, and utility tokens, which explains the sudden rise in the numbers already.
These are still a few notable examples of the many new BRC20 tokens that have been created in recent months. The rise of these tokens like $ORDI, newly created BRC20 token that was first launched on March 8, 2023 is a sign of the growing interest in BRC20 tokens and the potential they offer for the Bitcoin blockchain. Since its launch, ORDI has quickly become one of the most popular BRC20 tokens as it’s already trading live on multiple major exchanges.
The Future of BRC20 Tokens
The future of BRC20 tokens is still uncertain, but they may have the potential to revolutionize the Bitcoin blockchain. By offering a way to create fungible tokens, BRC20 tokens could open up new use cases for Bitcoin and make it more accessible to a wider range of users. Although, the technology and understanding of it seems bulky as blockchain is meant to be very easy to understand.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.