What is BRC-20?

BRC-20: A new generation of token standards on Bitcoin
What is BRC-20?
BRC-20 is a protocol for creating and trading fungible tokens on the Bitcoin blockchain. It leverages Bitcoin’s Ordinals protocol to embed token information into a single Bitcoin (satoshi). In simple terms, BRC-20 allows you to create digital assets on Bitcoin similar to Ethereum’s ERC-20 tokens.
How BRC-20 works
Ordinals protocol: BRC-20 is built on the basis of the Ordinals protocol. The Ordinals protocol allows you to store data on a single Bitcoin, while BRC-20 stores token information as data on these Bitcoins.
Inscriptions: These data storing token information are called “inscriptions”. Each inscription represents one or more tokens.
Token information: The inscription contains information such as the name, symbol, total supply, etc. of the token.
Transaction: When you transfer a Bitcoin, you actually transfer the token associated with it.
Advantages of BRC-20
Bitcoin native: Built directly on the Bitcoin network, it inherits Bitcoin’s security, decentralization, and censorship resistance.
Flexibility: Various types of tokens can be created, such as governance tokens, utility tokens, etc.
Community driven: Developed and maintained by the community.
Application scenarios of BRC-20
Community governance: Create governance tokens to allow community members to participate in decision-making.
Game assets: Create virtual items or currencies within the game.
Digital collectibles: Create digital artworks or collectibles.
Payment: As a payment method.
Limitations of BRC-20
High transaction fees: The fees for transactions on the Bitcoin network are relatively high.
Limited scalability: Bitcoin has a limited block size, which may limit the issuance and trading of tokens.
Technical complexity: Creating and managing BRC-20 tokens requires certain technical knowledge.
Future of BRC-20
As an emerging technology, BRC-20 has great development potential. It brings new vitality to the Bitcoin ecosystem and provides more possibilities for developers. However, BRC-20 is still in its early stages, with some challenges and uncertainties.

Summary
BRC-20 is an important innovation in the Bitcoin ecosystem, which introduces token functionality to Bitcoin. Although BRC-20 is still in its early stages of development, its potential cannot be ignored. As the technology continues to develop and the community continues to grow, BRC-20 is expected to play a greater role in the future.

FAQ
What is the difference between BRC-20 and ERC-20?
BRC-20 is on Bitcoin, and ERC-20 is on Ethereum.
BRC-20 has higher security but weaker scalability.
Is BRC-20 safe?
BRC-20 inherits the security of Bitcoin, but the value of the token itself depends on the issuer and the community.
How to buy BRC-20 tokens?
You can buy it through an exchange or wallet that supports BRC-20.
To learn more about BRC-20, you can refer to the following resources:

Ordinals Protocol Official Website: https://github.com/ordinals/ord