What’s Brc-20 Tokens and the Opportunities therein?
The current new narrative in the cryptocurrency space has been the Brc-20 and its opportunities therein, it is the existing network on the Bitcoin blockchain and it leverages on the Bitcoin popularity and sovereignty alongside its security and decentralized nature.
It’s inspired by the Ethereum ERC-20 token standards but with quite a notable difference between the duos, as the former leverages on ordinal inscription on satoshi to create its tokens. While the later uses smart contracts codes built on the Ethereum Virtual Machine (EVM) on the Ethereum blockchain to create its tokens.
What’s Brc-20 Token Standards?
This is an experimental token standard that uses ordinal inscriptions to enable minting and transfer of fungible tokens on the bitcoin blockchain.
Brc-20 token was introduced on the 9th of March, 2023 by a pseudonymous blockchain enthusiast known as ‘Domo’ and on the same day, he launched the first brc-20 token known as ‘Ordi’.
Since then, there have been about 24,677 of Brc-20 tokens in existence on the network. The current market cap is $472,554,369 with a 24 hours trading volume of $206,705,219 as the time of filing this report. Top meme tokens on brc-20 are the Ordi, with a market capital of $318,000,704 and a price of $15.14 though with an all-time high of $27, others are Oshi and Pepe. There’s usually a limit to be minted per time.
How is Brc-20 token created?
The brc-20 fungible tokens are created by attaching a Javascript Object Notation (JSON) to satoshi through bitcoin ordinals. This JSON code bit defines every features of the brc-20 tokens such as minting and distribution and the bitcoin network decodes this information once deployed.
Bitcoin Ordinals: is the systematic numbering and transferring of every satoshi on the Bitcoin network according to its order of issuance. Satoshi is the smallest unit of currency on the bitcoin network, 1 Bitcoin is equals to 100,000,000 satoshis. Other usecases of the brc-20 is the Ordinal NFTs.
Ordinal NFTs are non-fungible tokens and they are created by attaching a digital asset file, e.g. images to satoshi. The brc-20 tokens are minted and spent like any other normal tokens. A bitcoin ordinal wallet is required to mint brc-20 tokens with a limit for each mint.
Platform needed to interact with Brc-20 network
There are several platforms where one can mint, buy/sell and transfer brc-20 tokens such as on brc-20.io, ordinalswallet.com and unisat.io, though the minting option is yet to be available on the later. Don’t forget that you need to create a wallet with any of them and fund with Bitcoin for gas fees
Opportunities in Brc-20 token networks
Just like in any other blockchain networks, opportunities abound, such as peer-to-peer trading on the network’s exchange as one can decide to be a merchant.
Secondly, arbitrage trading opportunity where one can mint or buy from the brc-20 network exchange at a cheaper rate and then sell in the centralized exchange with some profits.
And lastly, is the that brc-20 tokens can as well be used for decentralized finance (DeFi) on the bitcoin blockchian, since brc-20 tokens are flexible and so can be integrated into decentralized exchanges, lending protocols and yield farming systems.
Never the less, the brc-20 network is still an experimental token and hence it’s users and investors ought to be cautious as it may loose it’s value over time. In the same vein, brc-20 tokens has created a massive traffic to the Bitcoin Blockchain network thereby creating an upsurge in the transaction fees.
In conclusion, the brc-20 tokens are experimental token standards that uses ordinal inscriptions to enable the minting and transfer of fungible tokens on the Bitcoin blockchain and it has had an eruptic effects on the bitcoin networks within its few months of inceptions, it has had a market capital of $472,554,369 million with about 24,677 tokens already deployed. Opportunities in this network are the P2P and arbitrage trading and the DeFi protocols on the network among others. The brc-20 token network though experimental and so it’s users and investors ought to be cautious but then it seems that the brc-20 tokens have come to stay.
