Since the launch of the Bitcoin Taproot upgrade in 2021, many innovative developments have emerged in the blockchain.
And one of those significant breakthroughs was the Bitcoin Improvement Proposal (BIP), which made the creation of Bitcoin NFTs and related transactions possible.
Now, you may be asking what Bitcoin Improvement Proposal (BIP) has to do something with BRC-20.
Well, we’re going to discuss that right now! So let’s dive in and make sure to take note of everything.
A QUICK RECAP…
If you’ve remembered, Bitcoin Improvement Proposal (BIP) introduced the concept of “inscribing.”
This idea allowed creators to link metadata into individual satoshis, which are the smallest unit of Bitcoin, through the process of “inscribing.”
Because of this development, a satoshi can become non-fungible if it’s linked to data, such as an artwork or NFT. This makes this satoshi unique, meaning doesn’t have the same value as others, even though Bitcoin itself is a fungible digital currency.
In conclusion, a satoshi with linked metadata is called an “inscription.”
WHAT IS BRC-20?
BRC-20 is a token standard that uses “Ordinal inscriptions,” allowing users to mint and transfer fungible tokens in the Bitcoin blockchain.
It was modeled after Ethereum’s ERC-20 token standard by an anonymous developer, Domo, who launched it in March 2023. Like on Etheruem’s blockchain, you can now deploy and mint your own tokens within the Bitcoin network, thanks to BRC-20 token standard.
HOW DOES IT WORK?
BRC-20 tokens, which are native to Bitcoin, are fungible tokens. Notably, unlike the widely used token standards on EVM blockchains, the BRC-20 standard doesn’t rely on smart contracts.
Instead, it enables users to store a script file on Bitcoin and utilize it to link tokens with specific satoshis. To deploy, mint, and transfer tokens, BRC-20 tokens are employed, and they incorporate JSON data into ordinal inscriptions.
WHY DOES IT MATTER?
Despite being an experimental fungible token, BRC-20 tokens have garnered significant attention within the Bitcoin community. Ordinal infrastructure providers, including wallet services and marketplaces, have started integrating BRC-20, enabling their users to create and trade these tokens.
The power of open-source communities is exemplified by BRC-20 tokens. When a developer introduces a fresh idea and releases it as open-source, the concept can evolve and flourish with the contributions of other enthusiasts. This collaborative environment fosters significant advancements that push the boundaries of the underlying technology.
Pepe tokens, Ordi, and VMPX serve as prominent examples of tokens built on the BRC-20 standard, each with its own unique characteristics and operational framework.
Gm 🌞 pic.twitter.com/mlXcBujnzq
— $pepe.BRC-20 🟧 (@Pepe_Brc20) June 5, 2023
WHERE TO BUY BRC-20 TOKENS?
If you’re ready to venture into these tokens, BRC-20s can be traded in three ways:
1. Centralized Exchanges
You can buy or sell BRC-20 tokens through exchanges, such as Binance, OKX, Deepcoin, and CoinW. You can then store them in supporting wallets.
2. Ordinal Exchange
In this method, you may need to have an ordinal wallet to trade BRC-20s in the platform. Here’s a simple procedure for your reference.
- Head to ordinalswallet.com and create an ordinal wallet
- Now, locate the “BRC-20” tab
- Select the token you wish to buy from the list
- d. Lastly, click the “Buy Now” option to purchase the BRC-20 token
3. Unisat Exchange
You will need a Unisat wallet to purchase BRC-20 tokens for this method. Here’s a step-by-step process.
- Go to unisat.io and create an Unisat wallet
- Head to the BRC-20 tab in the navigation panel
- Look for a desired token in the list
- Click on it and select “Trade.”
- Lastly, select the “Buy Now” option to purchase the BRC-20 token
Before purchasing a BRC-20 token, kindly make sure to DYOR first because most BRC-20s are meme coins.
Take the PEPE coin as a significant example.
HOW TO LIST BRC-20 TOKENS?
Since you’ve already bought BRC-20 tokens, it’s time to sell and list them for profit.
In this section, you can see the information below for your reference on how to list and sell your BRC-20 tokens.
1. Centralized Exchanges
You can sell BRC-20 tokens through the standard P2P method.
2. Ordinal Exchange
You may only need to open your Ordinal wallet, head to the “My Inscriptions” section, and select the “List for Sale” option according to the token you want to sell in your wallet.
3. Unisat Exchange
In Unisat, you need to go to unisat.io and head to the marketplace tab. After that, you can select the “My Inscriptions” prompt, pick the wallet where you stored your BRC-20 tokens, and choose the desired token you want to list in the market.
Once you’re done following the methods according to the exchange you used, you’re good to go!
You may only need to wait for transactions to be done, as they are done automatically by the system.
HOW TO DEPLOY YOUR OWN BRC-20 TOKEN?
Let’s say you got tired of trading and want to deploy your own BRC-20 token; then you can follow these methods below.
- Ordinal Exchange – In this platform, you may only need to head to the website and select the “Inscribe” tab. Next, you can choose the BRC-20 token, and that’s it! Kindly put the necessary information in the tab, pay the amount, and then you’ve created your own BRC-20 token.
- Unisat Exchange – It’s mostly the same with Ordinal Exchange. You must enter into unisat.io website and select the “Inscribe” option in the upper panel. Next, select BRC-20 and choose deploy. Kindly fill in the information according to your desired tick, total Supply, and limit per mint. After that, you can then proceed to the following prompt and pay the necessary amount. And voila! You just created your own BRC-20 token.
Once you have created your BRC-20 token, you can then list them on the exchange to sell them for profit.
CONCLUSION
BRC-20 is a massive W for Web3 since it incorporates features present in other blockchains to Bitcoin.
Because of this, traders can now use the Bitcoin blockchain for trading projects that are highly valuable for the community.
But despite its bullish traits compared to ERC-20, it’s still currently in development.
So, developers and traders should continuously be careful and apply proper risk management.
Nonetheless, what do you think about this update?
Editors’ Note: The Mega Maxi’s articles and its external content are not financial advice. Always DYOR.
