Quick Question

📔What is the BRC20 Token Standard?

The BRC-20 token standard, initiated by an anonymous developer named domo on March 9, 2023, represents an innovative approach to creating fungible tokens directly on the Bitcoin blockchain. Unlike popular token standards on EVM blockchains that rely on smart contracts, BRC-20 utilizes a unique method where users store a script file on Bitcoin. This script is used to assign tokens to individual satoshis. The BRC-20 tokens integrate JSON data into ordinal inscriptions, allowing for the deployment, minting, and transferring of tokens without the need for traditional smart contracts.

📔BRC-20 vs. ERC-20

ERC-20, a standard for fungible tokens on Ethereum, utilizes smart contracts for its operation. In contrast, BRC-20 represents an innovative approach for creating fungible tokens on the Bitcoin blockchain using ordinal inscriptions. Due to the intentionally restricted programmability of Bitcoin, BRC-20 is simpler and has more limitations compared to the ERC-20 standard.

📔What Are the Use Cases of BRC-20 Tokens?

Currently, BRC-20 tokens are primarily used in the realms of Ordinals NFTs and meme coins. However, there is active exploration to broaden their applications, which includes potential uses in DeFi and NFT platforms.

📔How to Mint BRC-20 Tokens

To create BRC-20 tokens, you can use platforms such as XRGB, Unisat.io, etc. This involves entering specific details of your token, like its name and symbol, setting the quantity you want to mint, and then confirming the transaction. This process is user-friendly and facilitates the minting of your own BRC-20 tokens on the Bitcoin blockchain.

📔How to Store BRC-20 Tokens

For storing BRC-20 tokens, wallets compatible with Bitcoin that support Taproot addresses are suitable, like XRGB Wallet. These types of wallets are equipped to manage and securely store BRC-20 tokens alongside regular Bitcoin holdings.

📔What Can BRC-20 Tokens Do?

1. Allow developers to generate tokens on the Bitcoin blockchain, like how ERC-20 tokens are created on Ethereum.

2. Provide a smooth mechanism for exchanging tokens of the same types.

3. Empower creators of tokens to both mint and trade BRC-20 tokens directly through a Bitcoin wallet.

📔What Can't BRC-20 Tokens Do?

BRC-20 tokens, unlike Ethereum's ERC-20 tokens, do not have the capability to interact with smart contracts.