What are BRC-2O based tokens, which have occupied the agenda lately, and how do they work?
BRC-20 tokens, which have exploded recently, continue to occupy the cryptocurrency agenda. So what are BRC-20 tokens and how do they work? Let’s take a look together.
BRC-20 is a token standard that allows tokens to be generated and transferred through the Ordinals protocol on the Bitcoin blockchain.
BRC-20 tokens mixed with ERC-20-based tokens have different mechanisms and functions compared to Ethereum-based tokens.
BRC-20 based tokens are still at a very early stage as they enjoy great popularity. For this reason, it requires users to approach it with great care.

What is the BRC-20 standard?

The BRC-20 token standard is an experimental fungible token standard designed specifically for the Bitcoin blockchain network. This standard was created in March 2023 by a mysterious blockchain analyst named Domo. The BRC-20 standard allows the creation of fungible tokens through the ordinals protocol and also enables their transfer.
The most important difference of the BRC-20 token standard from ERC-20 is that it uses the Ordinals protocol instead of a smart contract. The Ordinals protocol allows people running Bitcoin nodes to create an Ordinal by saving data. Data recorded in Bitcoin also contains smart contracts that enable NFTs.
With the BRC-20 standard, users had the opportunity to write JavaScript Object Notation (JSON) data to satoshi tokens.
The BRC-20 standard has a very different way of working compared to ERC-20, TRC-20 and BEP-20. JSON inscriptions can be used to program satoshis with BRC-20.
The first BRC-20 tokens released were called ordi. Bitcoin wallets quickly adopted the tools available to support BRC-20 tokens in a short period of time. Following these developments, many BRC-20 tokens, especially meme tokens, were launched.
With the increasing popularity following the rapid launch of BRC-20 tokens, significant increases in the price of these tokens have been recorded starting from May 2023. The intense demand caused the Bitcoin network to experience congestion.