What is brc-20 & how does it work?

First developed in March 2023, by a pseudonymous programmer known as Domo, BRC-20 came out of a curiosity about the possibility of creating fungible tokens on Bitcoin following the launch of the network’s Ordinals protocol in January 2023. How Does BRC-20 Work? The functionality of BRC-20 tokens lies in the Bitcoin Ordinals protocol.

What is bitcoin request for comment (brc-20)?

“Bitcoin Request for Comment” (BRC-20) is a new, experimental token standard being used to issue and transfer fungible tokens on the Bitcoin blockchain. BRC-20 was first detailed in March 2023 and uses the Ordinals protocol. The market cap of all BRC-20 tokens stood at ~$750M as of 5/8/2023. That’s up ~44x from ~$17.5M as of 4/24/2023.

What are the benefits of the brc-20 token standard?

The BRC-20 token standard brings a variety of advantages to users and developers alike. Here are some of the key benefits: Fungibility: BRC-20 tokens, by definition, are fungible. This means each token is identical to every other token; they are interchangeable, like traditional currencies.

Do I need a bitcoin wallet to trade brc-20 tokens?

It's also important to note that you'll need your own Bitcoin wallet to mint or trade BRC-20 tokens. At the moment, ERC-20 tokens are likely the better option over BRC-20 tokens for several reasons. Firstly, if you're a big fan of smart contracts, you may not like the functionality of the BRC-20 standard.