Recently, the number of recorded Bitcoin ordinal inscriptions has exceeded 10 million, and a significant 80% of them are associated with BRC-20 tokens. showcasing the increasing prominence of Bitcoin and its associated tokens in the cryptocurrency industry. The daily production of approximately 200,000 new transactions, coupled with the steady minting of ordinal inscriptions, is a testament to the sustained interest and engagement of users in the ecosystem.
About the BRC-20 Tokens
Tokens that are built on the Bitcoin blockchain are called BRC-20 tokens. The ERC-20 tokens on the Ethereum blockchain also have similarities with these tokens. BRC-20 tokens can be used for raising funds, trading, and gaming purposes.
JSON ordinal inscriptions are utilized to initiate token contracts when constructing BRC-20 tokens on the Bitcoin blockchain. BRC-20 tokens have now expanded their usage to include activities such as fundraising, trading, and gaming.
The tokens of BRC-20 can encompass a wide range of assets, from meme digital tokens to virtual ownerships. Nevertheless, generating and transferring these tokens necessitates a larger amount of data, in contrast to a typical Bitcoin transaction. This means that they need more storage capacity in the blockchain, leading to increased competition for block space and higher fees for users who desire fast verification of their transactions.
Utilizing Bitcoin ordinal notations is a technique for monitoring the number of unique addresses that have participated in the Bitcoin blockchain. Each time a new address interacts with the blockchain, a new entry is recorded.
BRC-20 Vs ERC-20 Tokens
One of the main differences between BRC-20 and ERC-20 is the blockchain they use. BRC-20 tokens are built on an alternative blockchain to Bitcoin, while ERC-20 operates on the Ethereum blockchain. This means that BRC-20 tokens have distinct features and capabilities.
Another distinguishing feature of BRC-20 tokens is their utilization of ordinal inscriptions to associate information with specific satoshis. In contrast, ERC-20 tokens require the use of smart contracts to manage the tokens and their rules. The inscription of ordinals on Bitcoin is made possible by storing a script file on the network with BRC-20 tokens.