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Dear country without banks
Earlier this year, A new form of Bitcoin NFT It exploded with the advent of the Ordinals Protocol.
This system is used to “engrave” or convert individual Satoshi (the smallest denomination of BTC) into Bitcoin-based NFTs.
Shortly after Ordinals arrived, an experimenter used this protocol to create another system, BRC-20, as a new way to create semi-fungible tokens in Bitcoin.
Over the past few days, the surge of memecoins like $PEPE on Ethereum has sparked a similar memecoin boom in Bitcoin via BRC-20. In today’s post, let’s review all the basics here 👇
-WMP
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First proposed in 2015, ERC-20 refers to Ethereum’s official token standard for fungible tokens, i.e. identical, currency-centric tokens. The dollars in your pocket are fungible, and so are the UNIs in your wallet.
In contrast, the BRC-20, although new to the crypto-economy, is not a smart contract-based token like the ERC-20, nor is it fully fungible. Rather, BRC-20 tokens are more or less like fungible tokens such as MATIC and UNI combined with semi-fungible ERC-1155 NFTs.
This is because BRC-20 is created by writing a snippet of JavaScript Object Notation (JSON) text into a Bitcoin NFT via the Ordinals protocol. This JSON contains basic information about the token such as maximum supply, token ticker, etc. For transfers or buys and sells, additional NFTs are written that can be used to track off-chain balance adjustments.
The BRC-20 model is therefore an informal, experimental standard outlining an NFT-based monetary system built on Bitcoin.as a creator Domo have Explained in GitBook:
“This is just a fun experimental standard demonstrating that inscriptions can be used to create off-chain balance states. This should not be considered a standard for Bitcoin fungibility using ordinals. Because I believe there will almost certainly be better design choices and improved optimizations. Therefore, this is a very dynamic experiment and we strongly encourage you to base your financial decisions on its design. However, I encourage the Bitcoin community to tinker with the design and optimization of the standard until there is general agreement on best practices (or until they decide that this is a completely bad idea). Recommended.“
Experimentation often takes on a life of its own in cryptocurrencies, and the BRC-20 system has proven to be no exception.In particular, the casting of the BRC-20 and trading activity As the meme coin craze began to reach the Bitcoin frontier, it boomed.
On the one hand, from an innovation point of view, it is interesting that this kind of experimental standard opens up a new range of tokenization possibilities for Bitcoin. Meanwhile, the rise of BRC-20 in recent days has been controversial in the Bitcoin community due to an explosion of network congestion, with some Bitcoin maximalists calling this surge of activity a blatant attack on the OG blockchain. is considered to be
I don’t know yet how the problem will resolve accordingly, but one thing is clear. It means that the Bitcoin tokenization experiment will live on.
The BRC-20 scene is still relatively primitive, but one option has already surfaced as the popular Ordinals and BRC-20 wallets. UniSat. UniSat Wallet, a platform and open source Chrome extension, makes it easy to mint, store and transfer BRC-20 tokens.
On the UniSat website, BRC-20 Marketplace Browse and purchase a list of BRC-20 assets, or create your own. Of course, in the early stages of experimentation, trade at your own risk. When trading, use only test amounts at first. But if you want to get serious, UniSat seems to be the best starting point for beginners at this point.
Additionally, please note that the UniSat Marketplace cannot be used without at least 20 registrations through the platform. This is another driving force currently driving congestion in the Bitcoin network. Bitcoin transactions are expensive right now, at least in part because many people are trying to get his 20 transactions to start using his UniSat marketplace.
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The emergence of the BRC-20 token has sparked a new wave of activity and controversy in the Bitcoin community. As this experimental system becomes operational, it is becoming the new hub for memecoins, ushering in a new era of Bitcoin tokenization possibilities.
However, BRC-20 comes with its own set of challenges and concerns, chief among them is network congestion. It is also important for us explorers to remember the experimental nature of these early systems and the risks that come with them, such as unforeseen bugs.
Nonetheless, for those interested in learning more here, platforms like UniSat offer an attractive starting point to test your first BRC-20 transaction. If you want to learn more, keep an eye out for our in-depth BRC-20 analysis post in tomorrow’s Bankless newsletter. Stats, forecasts, and more.In the meantime, this Crypto Koryo’s Dune Dashboard is one place where you can explore early BRC-20 activity on your own.
William M. Peester I am a professional writer and creator metaversal— Bankless newsletter focused on the emergence of NFTs in the crypto economy. He has recently contributed content to Bankless, JPG, and more.
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