BRC-20: The new fungible token standard on Bitcoin

Over the past week, we've witnessed a historic event in the Bitcoin network. The number of transactions conducted on this blockchain for BRC-20 tokens has surpassed the number of regular BTC transactions. This change has led the Bitcoin network to exhibit a significant increase in fees and congestion, which has generated concern among users and highlighted the need to seek solutions to maintain its efficiency and scalability. In this article, we'll explore in detail this important change in the Bitcoin network and its implications for the future of the market-leading cryptocurrency.

Ordinals is a protocol that aims to enable the issuance and transfer of fungible tokens on Bitcoin. This standard allows developers to create and send fungible tokens through the Ordinals protocol. Fungible tokens are tokens that are interchangeable with each other, like money, and have the same value.

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BRC-20 is a fungible token standard that enables the implementation of exchangeable tokens on the Bitcoin network. Basically, information (such as audio and image) is stored on tokens of the same chain, using each Satoshi. The name BRC-20 is inspired by the name of Ethereum's blockchain token: ERC-20. However, one of the main differences between these tokens is that BRC-20 don't have the ability to interact with smart contracts.

One of the advantages of BRC-20 tokens is that they benefit from the security and decentralization of the Bitcoin network. Being stored on this chain, BRC-20 tokens are immutable and impossible to counterfeit. In addition, Bitcoin network is one between the best in the world, which provides an additional layer of security for BRC-20 tokens.

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However, there are also some limitations on these tokens compared to Ethereum's ERC-20. For example, BRC-20 tokens cannot have decimal places, which means that the smallest unit of a BRC-20 token is one Satoshi. In addition, BRC-20 tokens cannot be burned or frozen, which means that once issued, they cannot be withdrawn from circulation. Finally, BRC-20 tokens cannot have additional functions such as approval or delegation.

Despite these limitations, BRC-20 tokens remain an attractive option for those looking to create fungible tokens on the Bitcoin blockchain. BRC-20 tokens are a form of digital property that can be securely and reliably exchanged on this network. In addition, the popularity and value of Bitcoin as a leading cryptocurrency in the market provide a solid foundation for this kind of asset.

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In short, BRC-20 tokens are changing the way digital assets are created and traded on the Bitcoin network. Despite having some limitations compared to Ethereum's ERC-20, BRC-20 tokens offer a robust and secure alternative for those who wish to take advantage of the security and decentralization of this blockchain. With the growing demand for digital assets and the need for greater transparency and security in transactions, BRC-20 tokens are positioned to be a major force in the future of the digital economy. Ultimately, these tokens are yet another example of how blockchain technology is transforming the way we do business and opening new horizons in the world of finance and technology.