May 9, 2023
BRC-20 entered the chat, and with this, the big question lies ahead, will everything eventually return to Bitcoin? Before we dive in, here’s a simple breakdown of the BRC-20 token craze happening on the Bitcoin blockchain:
Following the Ordinals hype, BRC-20 emerged as an experimental token standard on Bitcoin for fungible tokens. It resembles the well-known ERC-20 standard but lacks the ability to interact with smart contracts. In the example below, we can see the various elements of a BRC-20 token inscription:
You’re probably thinking, what’s the utility? There’s none at the moment, but despite that its growth continues to soar since web3 is all about hype beast culture. The future of BRC-20 tokens remains uncertain, as developers have attempted to use Bitcoin's base layer for fungible token issuance before, but with limited success. Again, there are not many utilities for these tokens rather than being meme tokens. High transaction fees and limited programmability have pushed users towards Ethereum, and this is currently happening to Bitcoin, hence layer 2 like Stacks, Lightning and others could take the spotlight.
As the BRC-20 token craze unfolds, the future of Bitcoin and its adaptability to new use cases remains a hot topic. Don't miss out on the latest developments in the web3 world; join the Ryder waiting list today and stay ahead of the curve.