BRC-20
BRC-20 is an experimental token standard on Bitcoin using Ordinals inscriptions to create fungible tokens, analogous to ERC-20 on Ethereum.
BRC-20 works with textual inscriptions (JSON) encoding token operations: deploy, mint, transfer. Indexers read the blockchain and determine balances. No on-chain smart contract execution — everything runs on social consensus over indexer rules. Consequence: BRC-20 is experimental, less efficient than alternatives like Runes, and controversial.
Example
The first BRC-20 token 'ORDI' launched in March 2023. Within weeks it reached market cap of hundreds of millions USD. There are now thousands of BRC-20 tokens, most with very low trading volume.
Frequently asked questions
What's the difference vs. Runes?
BRC-20: text-inscriptions with indexer consensus, lots of blockchain space. Runes (Casey Rodarmor, 2024): native protocol with UTXO-based tokens, much more efficient and cleaner.
Related terms
Further reading
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