What Is BRC-20? Discover the New Token Standard on Bitcoin

1. What Is BRC-20 and How Did It Originate?

BRC-20 is an experimental token standard developed on the Bitcoin blockchain, launched in March 2023 by an anonymous developer named "Domo". Unlike Ethereum’s ERC-20 which relies on smart contracts, BRC-20 uses the Ordinals protocol to "inscribe" data onto satoshis the smallest unit of Bitcoin.

2. How BRC-20 Tokens Work

BRC-20 tokens operate by storing JSON data (token name, max supply, mint amount, etc.) directly onto a satoshi. This enables minting, transferring, and burning tokens without using smart contracts. To interact with BRC-20 tokens, users need a wallet that supports Ordinals, such as Unisat Wallet.

3. Pros and Cons of the BRC-20 Standard

Pros:

   • Expands Bitcoin's use cases

   • Smart contract-free, minimizing bugs

   • Boosts Ordinals ecosystem

Cons:

   • Not compatible with DeFi systems

   • May lead to network congestion and high fees

   • Still experimental, with potential risks

4. How to Create a Unisat Wallet and Buy BRC-20 Tokens

   • Visit Unisat.io and install the browser extension.

   • Create a new wallet or import an existing one using your seed phrase.

   • Deposit BTC to cover transaction fees.

   • Browse available BRC-20 tokens on the Unisat Marketplace and purchase as desired.

5. The Future of BRC-20: Trend or Bubble?

The rapid growth of BRC-20 tokens has sparked mixed reactions: some see it as a major innovation for Bitcoin, while others worry about network congestion caused by low-utility tokens. Still, the emergence of legitimate projects and growing interest from major exchanges may shape a clearer path forward for BRC-20.

6. Conclusion: Should You Invest in BRC-20?

If you're an investor keen on emerging technologies, BRC-20 may be a fertile ground. However, assess the risks, verify token legitimacy, and only invest what you can afford to lose. BRC-20 represents part of Bitcoin’s evolution—but it still needs time to prove its long-term value.