BRC-20 Tokens: Bitcoin's New Fungible Standard

Introduction

Introducing BRC-20 Tokens: Redefining fungible token standards on Bitcoin for global crypto exchange. Leveraging Bitcoin's infrastructure, BRC-20 tokens enable seamless trading and empower creators to mint and trade directly from Bitcoin wallets. 

Utilizing Taproot's upgrade, they enhance transparency. Unlike ERC-20, BRC-20 lacks Ethereum's smart contracts but showcases Bitcoin's potential for token innovation.

What are BRC-20 Tokens?

RC-20 tokens are a fungible token standard on the Bitcoin blockchain, similar to Ethereum's ERC-20 tokens. They enable the creation and transfer of tokens within the Bitcoin network, leveraging its security and infrastructure for decentralized applications, digital assets, and BTC to INR conversions.

BRC-20 Tokens Explained

• Unlike traditional tokens stored on separate blockchains, BRC-20 tokens leverage the Bitcoin Taproot upgrade to inscribe their data directly onto the Bitcoin blockchain.
• Taproot introduced the witness feature, allowing associated data to be stored within a Bitcoin transaction.
• Using Ordinals and Inscriptions, the BRC-20 token standard functions as an experimental fungible token on the Bitcoin blockchain.
• It deploys, mints, and transfers tokens by encoding JSON data as Ordinals inscribed on the blockchain.
• The BRC-20 token standard, showcasing fungibility on Bitcoin through Ordinals, was unveiled on March 8, 2023, by Twitter user @domodata.
• Though borrowing its name from Ethereum's ERC-20, the BRC-20 token standard lacks the smart contract functionalities of the EVM standard.

What Can BRC-20 Tokens Do? 

• Enable smooth trading between two tokens of identical type.
• Empower token creators to mint and trade BRC-20 tokens directly from a Bitcoin wallet.

Summary

In summary, BRC-20 tokens mark a pivotal stride in fungible token standards on the Bitcoin blockchain, facilitating seamless trading within a crypto exchange app. Leveraging Bitcoin's infrastructure, they empower creators to mint and trade directly from Bitcoin wallets, underscoring Bitcoin's evolving role in decentralized finance despite lacking Ethereum's smart contract functionalities.