What are BRC20 Tokens?

in #bitcoinlast year

BRC20 tokens are a new type of asset that are made and stored on the Bitcoin network. They are an experimental fungible token that uses a loophole in Bitcoin’s 2021 Taproot upgrade to add a small amount of data to individual satoshis. BRC20 tokens are modeled after Ethereum’s ERC-20 token standard, allowing programmers to create and send fungible tokens via the Ordinals protocol.

However, unlike ERC-20 tokens, BRC20 tokens do not rely on smart contracts and have fewer features and functionalities. BRC20 tokens offer little functionality when compared to similar tokens on the Ethereum network and offer no profits, dividends, and a lot of risk.

The recent surge in the BRC20 token market can be partly attributed to the growing popularity of Bitcoin’s BRC-20 token standard, which has become a hot trend in the crypto ecosystem

  1. The BRC20 token standard is built on top of the Bitcoin network and is an experimental fungible token that uses a loophole in Bitcoin’s 2021 Taproot upgrade to add a small amount of data to individual satoshis

  2. The BRC20 token standard is modeled after Ethereum’s ERC-20 token standard, allowing programmers to create and send fungible tokens via the Ordinals protocol