What is SRC-20?

SRC-20 is a token standard designed to create and manage tokens based on the Tem protocol. Inspired by the BRC-20 standard, SRC-20 allows for data embedding within Bitcoin transactions to create digital entities like Bitcoin Stamps (a protocol for storing text and images at Bitcoin transaction outputs, providing a native Bitcoin solution compared to the Ordinals protocol).

The Bitcoin Teme utilizes the Counterparty protocol to convert images into encrypted files and upload them onto the Bitcoin network. The protocol can only convert image files with a maximum size of 24 x 24 pixels. Each Tem Bitcoin must have a unique identifier and is created by adding "stamp:base64" to a new transaction.

Furthermore, SRC-20 aids in expanding functionality and flexibility for BTC. However, the rapid development of the new token standard also sparks debate over whether SRC-20 might deviate from Bitcoin's original objectives.

Characteristics of the SRC-20 standard:

Fundamental protocol: The standard employs the Bitcoin Tem protocol, enabling the embedding of data directly into Bitcoin transactions. This sets SRC-20 apart from other token standards.

Data storage method: SRC-20 facilitates storing image and text information on the blockchain based on the Unspent Transaction Output (UTXO) mechanism. This ensures the safety and immutability of the data. Source: Coinbay

File types and size: Tokens can encode JPG, GIF, PNG, or SVG files with a maximum size of 24 x 24 pixels. Each Bitcoin token is identified by a unique numerical code.


Minting process: The minting of SRC-20 tokens involves converting an image into text, encoding it as a Base64 file, and appending "stamp:" before the text. This encoded file is then uploaded to the Bitcoin network for verification and decoded back into the original image.

Resource usage: SRC-20 doesn't excessively consume resources or blockchain space. However, this leads to increased costs, especially with larger files and when utilizing multiple signature options for data storage.

Comparison between Bitcoin Stamps and Bitcoin Ordinals:

Bitcoin Stamps

Technical Integration:

Bitcoin Stamps are directly integrated into the Bitcoin blockchain through Unspent Transaction Output (UTXO). This data becomes a permanent part of the blockchain.

Security:

The storage system of Bitcoin Stamps is immutable and impervious to external interference, ensuring high levels of security and transparency.

Performance Neutrality:

The protocol is designed to maximize software space, significantly reducing the potential for performance degradation in the blockchain.

Applications:

Bitcoin Stamps are suitable for applications requiring high integrity and long-term databases.

Regulatory Compliance:

Their irreplaceable nature assists development teams in ensuring legal compliance, facilitating simpler regulations and minimizing document-related complexities.

Bitcoin Ordinals

Technique:

Ordinals are one of the methods to embed or "etch" digital content such as images, videos, etc., onto a Satoshi within the commonly used Bitcoin blockchain.

Performance reduction:

Synchronizing information on each Satoshi can increase the size of the blockchain, causing delays and congestion. Therefore, Bitcoin Ordinals may trim data considered unessential by the system to enhance performance. This reduces the level of security and trust for users compared to Bitcoin Stamps.

Applications:

The Ordinals mechanism is suitable for decentralized applications that require flexibility and high customization but should not be used for projects requiring long-term data integrity.

Prominent SRC-20 tokens

According to CoinRanking, the trading volume of 59 SRC-20 token projects amounts to 328,189.55 USD. Among them, some notable projects include:

- STAMP SRC (STAMP token) is trading at 0.0853 USD, down by 5.95% in the last 24 hours, with a market capitalization of 85,280,000 USD.

- KEVIN SRC (KEVIN token) is trading at 0.0258 USD, decreasing by 11.65% in the last 24 hours, with a market capitalization of 17,770,000 USD.

- STAMP SRC (STAMP token) is trading at 0.0745 USD, declining by 20.98% in the last 24 hours, with a market capitalization of 6,710,000 USD.

- SATO SRC (SATO token) is trading at 0.0202 USD, down by 14.54% in the last 24 hours, with a market capitalization of 2,020,000 USD.

Conclusion

SRC-20 is a token standard designed to create and manage tokens on the Bitcoin blockchain, specifically Bitcoin Stamps. SRC-20 employs a method of directly embedding data into Bitcoin transactions, encoding images through base64 chains to make tokens immutable and permanent on the blockchain. SRC-20 suits projects requiring high data integrity; however, developers may face challenges related to blockchain size and transaction fees.

References: https://t.co/kecTmbNlLi