What are BRC20 and ARC20?

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18 Jan 2024

After ORDI was listed on Binance, brc20 quickly emerged from the circle. Ordinary players who do not understand on-chain casting can also participate in brc20 gameplay.
After ORDI was deployed on the Bitcoin network in March, the rapid casting of 21 million ORDI was completed. At that time, the gas fee for casting an ordi was about a few US dollars. Now the price is 21 US dollars, an increase of more than 3,000 times.
Of course, these data are just to stimulate readers, most people have not obtained so many times. Some people buy ordi for $5 and sell it for $6; some people buy ordi for $18 and sell it when it drops to $6.
From the casting costs and price trends, it can also be seen that in the encryption market, especially when a new concept first comes out, those who keep up may reap thousands of times in benefits, but only a few people grasp it.
ORDI
What is brc20?
First of all, understand what Bitcoin inscription is. It refers to using the Ordinals protocol to write content into satoshi (Satoshi, the smallest unit of Bitcoin) for inscription. The written information can be text, pictures or videos, etc.
BRC20 is an experimental meme token minted on the Bitcoin chain. The tokens are deployed on the chain using the ordinals protocol and can be minted by anyone. It is based on the first-come-first-served principle and does not support smart contracts.
The brc20 token is decentralized. There is no private placement or pre-sale, and there is no unlocking or staking. Everyone can participate. At the same time, the function of brc20 is single, and there is no other empowerment except quantity.
At present, 85% of the inscriptions on the Bitcoin chain are brc20, which has no special meaning. It is just that speculators try again and again, hoping to become the second Ordi, but it is not easy to get out of the circle.
brc20 cumulative transaction volume ranking
Judging from the 24-hour transaction data of brc20 tokens in the ordinals market, the transaction volume of sats is more than 2.2 million US dollars, and the number of holding addresses is more than 40,000;
Rats have a transaction volume of more than 2.4 million, and hold more than 8,000 addresses; and cats, with a transaction volume of more than 1.4 million, but hold more than 2,000 addresses.
The cumulative transaction volume of sats in history has reached more than 84 million US dollars, while the cumulative transaction volume of ordi is only more than 1.5 million US dollars. The popularity of sats is still continuing, but it is also possible to be trapped in the takeover.
Other BRC20s with higher cumulative trading volume include rats, cats, btcs, bear, etc., but all BRC20s are memes. After the heat is over, the funds will flow out, and they will just return to zero, just like the various bull market in 2021. Animal coins?
I don’t know which one will make it out of the circle, or whether it’s just a meme. We stand at the crossroads of opportunities.
brc20 ranked by number of addresses held
What are arc20, brc100, pipe, rune?
With the popularity of brc20, in addition to the ordinary protocols, there are also atomic protocols, Rune protocols, PIPE protocols, etc. emerging one after another, all hoping to create different content in the Bitcoin ecosystem.
Each protocol is exploring new ways to play in the BTC ecosystem, and no one knows which one will be the final winner; each protocol also has a corresponding leading token, which has increased to varying degrees from the early days of minting to the present.
①Atomic protocol and Arc20
The Atomics protocol is a protocol built on the Bitcoin network.
On the Bitcoin network, through the Atomics protocol, you can create (mint), transfer and upgrade digital items (nft, such as native digital nft, game nft, digital identity, domain name, social network, etc.), and you can also create interchangeable tokens. Token.
Through the Atomics protocol, non-interchangeable NFTs can be generated on the Bitcoin network, and interchangeable tokens can also be generated; this interchangeable token is the ARC20 token.
The leading ARC token is ATOM, and the gas fee when minting is also a few dollars. The current floor price is $2,100.
Other arc20s include pepe, realm, dmint, bitwork, bitvm, etc., but they are not very popular yet.
Popular ARC20
②Rune protocol and PIPE
The Rune protocol is a new protocol proposed by Casey Rodarmor, the founder of the Ordinals protocol. It is a simple, UTXO-based FT protocol that allows Bitcoin users to have a good experience.
The Rune protocol was proposed in the hope of combating excessive UTXO (various meaningless brc20) on the brc20 chain. The number of BRC20-related inscriptions has accounted for more than 85% of the total inscriptions.
Casey Rodarmor believes that a large number of brc20 are meaningless tokens, which has caused huge congestion on the btc network and created a lot of garbage. Brc20 has become a paradise for speculators. He hopes to change this situation.
Based on the Rune protocol, someone proposed the pipe protocol, which inherits the anti-double-spending feature of Bitcoin utxo, and at the same time solves the problem of on-chain congestion caused by repeated inscriptions of ordinals, improves efficiency, and saves transfer costs.
The first token of the PIPE protocol is PIPE, as well as etch, utxo, rune, lane, etc. But at present, from the perspective of the popularity of the pipe protocol, except for the tokens at the top, which have a larger amplitude, the others are not out of the circle.
Atomic and pipe protocol tokens can be minted, purchased or transferred at satsx.io.
In addition to brc20, arc20, and pipe, there are also different protocols such as brc100 and brc400, all of which are research on the gameplay of the Bitcoin ecosystem.
PIPE protocol token
③Lightning payment
If compared to the Ethereum network, ordinary, atomic, and rune protocols are directly built on the Bitcoin network, benchmarking against the EIP, ERC and other protocols of the Ethereum network.
There are many L2 projects on the Ethereum chain, such as Optimism, Arbitrum, zkSync, Starknet, etc. The Bitcoin network also has L2 layer solutions, which can establish two-way payment channels to achieve instant and low-cost transactions.
It aims to use Lightning Network technology to realize asset issuance on the Bitcoin chain. For example, the Nostr Assets Lightning Network released an airdrop some time ago and airdropped Treat and Trick tokens to early users.
There is also the RGB protocol, which is used to create smart contracts for the Bitcoin network and pays more attention to user privacy;
And BitVM, which can be understood as the Bitcoin virtual machine, integrates Optimistic RollUp and Fraud Proof fraud proof, executes the operation process on the step chain, and only stores data.
At present, these are the in-depth attention and exploration of the Bitcoin ecosystem. Through the improvement of the L2 network, the privacy, security and scalability of Bitcoin will be improved.
Lightning payment
What are Bitcoin NFTs?
In addition to various token inscriptions, there are also Bitcoin NFTs.
Analogous to NFT, cryptopunks, BAYC, etc. on the Ethereum chain, Bitcoin NFT is still in its early stages. Will it develop into as popular as Ethereum NFT? It still needs time to verify?
Due to the limitation of Bitcoin block size, most NFTs are pixel-based, and some are copied from the Ethereum chain to the Bitcoin chain.
From the perspective of early layout, which Bitcoin NFT can become the leader in the future?
Everyone has different opinions, some people say it is Bitcoin Punks, Bitcoin Bored Ape Yacht Club, etc., because these have been successful on the Ethereum chain and are watched and loved;
Some are also said to be Bitcoin original NFTs, such as Bitcoin Frogs, Pixel Pepes, etc. I don’t know which one will be the leader in NFT in the future, but the cost of trial and error is not low. The floor price of Bitcoin Frog is 0.17 BTC, and the floor price of Pixel Pepes is 0.24 BTC.
You can also see btcNFT information in markets such as ordinarys.market and magicden.io.
NFT on Bitcoin chain
Recently, there are many examples of BRC20 making money online. It seems that many people became rich overnight.
But any market is subject to the 80/20 rule, and only a small 20% group benefits.
For example, there are several people who spent thousands of dollars on various brc20 tokens, but the results have all returned to zero, or they are currently at zero. Whether they can rise or double depends purely on luck.
Don’t exclude new ways of playing, keep learning, and follow if you have the ability. You may be lucky next time. Of course, most of the time you end up in failure. It’s just trial and error. This is the norm.
The above is just my personal opinion, no investment advice. I am CryptoLola, and I am paying attention to the encryption market and web3.

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