The Bitcoin Network's BRC-20 Is Growing: Here's What You Need To Know

 





The year 2023 got off to a wonderful start for the cryptocurrency industry. Several new assets entered the market, which was noticed. Beyond the meme currency craze, Bitcoin has generated a lot of buzz in recent months. One of the causes was the $30K retest of the king coin, and another was the BRC-20 tokens of Bitcoin. At the moment, BRC-20 tokens are the talk of the crypto world. However, what are these symbols?


Exploring BRC-20 tokens

In March 2023, a Twitter user going by the handle "Domo" introduced BRC-20 tokens. These tokens, which stand for "Bitcoin Request for Comment," are built on the Bitcoin network.

A test that draws inspiration from Ethereum's well-known ERC-20 standard is the BRC-20 token standard. Token standards are important because they specify how and where a cryptocurrency can be used in the market. Other token standards include BEP-20, TRC-20, and ERC-20, for instance.


Why are these tokens used?


The creation and trade of fungible tokens on the Ordinals platform has been made simpler by the BRC-20 token standard. The introduction of the Bitcoin Ordinals protocol last year sparked controversy in the community because it offered the possibility of NFTs based on Bitcoin.


These assets were created using Ordinals and Inscriptions and can be accessed on the Bitcoin blockchain. To build and administer token contracts, mint tokens, and transfer tokens, developers employ ordinal inscriptions of JSON data. This facilitates the development of new tokens and their integration with already-existing platforms and apps based on Bitcoin.


What distinguishes this from ERC-20 tokens?

The BRC-20 and ERC-20 token standards are founded on separate blockchains, to begin with. As a result of this distinction, BRC-20 and ERC-20 tokens will use different consensus processes. Ethereum employs the proof of stake [PoS] consensus process as opposed to Bitcoin's proof of work [PoW] mechanism, in which miners are in charge of verifying transactions by resolving challenging computational tasks. To protect the network and validate transactions for ERC-20 tokens, validators stake ETH.

Unlike ERC-20 tokens, BRC-20 tokens do not require on smart contracts to function. Ordinals and Inscriptions are used by BRC-20 tokens to operate. Last but not least, a personal Bitcoin wallet is required in order to create or trade BRC-20 tokens.

The market now has how many BRC-20 tokens?

There are presently 14,200 tokens available on the market, although the numbers are constantly changing. Market value of these assets peaked at $689,551,515 at the time of publication.


With a market cap of over $400 million, the ORDI coin, which just gained listings on Gate.io and Crypto.com, dominated the market. After falling from a high of $29.04, ORDI was trading for $16.98 on Crypto.com. The Pepe Coin [PEPE], another asset, has made a big contribution to this rise. Additionally, these assets had a 24-hour volume of $203,996,187.

BRC-20 tokens vs. ERC-20 tokens: Which will win?
BRC-20 tokens have attracted users' attention as a viable way to use tokens on the Bitcoin network. Even though they are still considered experimental, this is being done. This may be because BRC-20 tokens address a significant limitation in Bitcoin's functionality—namely, the absence of smart contract capabilities.


True, BRC-20 coins have not yet demonstrated their long-term viability and influence and are currently in the experimental phase. BRC-20 tokens, according to some naysayers, could be a short-lived trend whose appeal may wane over time. Even more so, the developer has issued a warning that the BRC-20 standard has its limitations and that the tokens might not have any worth.

ERC-20 tokens are more adaptable and have a more firmly established market presence than BRC-20 tokens. For instance, there are several well-known exchanges that sell ERC-20 tokens if a consumer wants to buy them. BRC-20 tokens, on the other hand, are still in the experimental stage and are not yet able to develop a sizable market presence.

It's also crucial to remember that the recent growth in BRC-20 token prices and market capitalization shows that there is tremendous interest in and possibility for using tokens on the Bitcoin blockchain. The long-term success and significance of BRC-20 tokens will only become clear with time.


Comments

Popular posts from this blog

Crypto.com Announces Partnership with Samsung

High Tax Jeet: Bringing Back the Old School BSC with Lucrative Rewards