What are BRC-20 Tokens? BRC-20 tokens are a novel standard on the
Bitcoin blockchain, BRC-20 tokens were inspired by Ethereum’s
ERC-20. Like Ethereum’s ERC-20 strands for Ethereum Request for
Comment, BRC-20 also strands for Bitcoin Request for Comment.
BRC-20 tokens allow the creation, minting, trading, and transfer of
fungible tokens or assets on the Bitcoin blockchain through the
Ordinals protocol. The Bitcoin Ordinals protocol is a numbering
system that allows users to attach extra data to satoshis, the
smallest unit of Bitcoin. Related Reading: How to Buy, Sell, and
Trade ERC-20 Tokens on the Ethereum Network The process of
attaching extra data to satoshis is called inscription, BRC-20
tokens do not need smart contracts to execute transactions as
ERC-20 tokens do, their transactions are done through JSON
inscriptions on satoshis through Bitcoin Ordinals. Differences And
Comparison Between BRC-20 And ERC-20 Ethereum’s ERC-20 might have
inspired the creation of BRC-20 on the Bitcoin blockchain, but make
no mistake, they are not the same, and we are going to explore that
in this section of this article. Operation: One of the key
differences between BRC-20 and ERC-20 is that BRC-20 tokens find
their home within the Bitcoin blockchain while ERC-20 operates on
the Ethereum blockchain. Implementation: BRC-20 and ERC-20 are both
implemented differently; however, BRC-20 is experimental, meaning
it has not undergone the BIP process. It only implements changes in
the Bitcoin protocol, while ERC-20 has undergone the EIP process,
which was approved by the Ethereum community before implementation
after being scrutinized. Security: They are both secure as they are
both secure by the top two blockchains in the crypto space, but
BRC-20 is secured by the Bitcoin blockchain and ERC-20 is secured
by the Ethereum blockchain. High Gas Fee Or Transaction Fees: They
both have high gas fees if you are trading on decentralized
exchanges (DEXs). Wallets: Their wallets are different, you can
store your BRC-20 token on wallets that support the Bitcoin Taproot
upgrade like Unisat, Xverse, CoinW, and Alex. While ERC-20 tokens
are stored on Ethereum-supported wallets like Metamask, Exodus,
Trust wallet, Atomic, MyEtherWallet, and all EVM compactable
wallets Smart Contract functionality: BRC-20 tokens do not rely on
smart contracts to execute transactions, but ERC-20 tokens do.
Token Value Drive: BRC-20 tokens are token values driven by
inscriptions, and ERC-20 token values are driven by utilities and
speculations. Related Reading: How To Buy, Sell, And Trade Tokens
On The Avalanche Network Fungibility: BRC-20 tokens are
semi-fungible because they are only interchanged in set increments.
For example, BRC-20 tokens are being sold in sets, so you can’t buy
1003 xBRC-20 tokens (x being the token) if the only people sell
decide to sell in sets of 250, 500, 750, and 1000 depending on how
many tokens they want to sell. Meanwhile, ERC-20 tokens are fully
fungible because they can be exchanged in any quantity. Functions:
The BRC-20 token standard is majorly to create meme tokens
currently, while the ERC-20 token standard is used for a good
number of fungible tokens on Ethereum, including stablecoins,
governance tokens, wrapped tokens, and utility tokens. Pros of the
BRC-20 Token Standard The fact that BRC-20 tokens are built on the
most secure blockchain in the crypto space Bitcoin, should help you
understand these tokens are going benefit from the security that
the Bitcoin Blockchain provides. The interoperability with the
Bitcoin network is one of the major advantages of the BRC-20
tokens, as they enjoy and leverage the widespread acceptance of
Bitcoin as the most successful crypto, which has contributed to the
BRC-20 token’s overall success. Also, this compatibility with
Bitcoin gives the BRC-20 standard access to utilize the existing
infrastructure the Bitcoin network already has, including its
wallets and exchanges. BRC-20 standard is still in its early
stages, so there is huge potential for growth in the future, and as
more people keep adopting and investing in BRC-20 tokens Cons
of the BRC-20 Token Standard In the same way, as the BRC-20 token
standard enjoys the benefits of the Bitcoin network, they are still
going to be affected in the areas where Bitcoin lags behind. This
is because Bitcoin is not as scalable as some other blockchains
like Ethereum. As BRC-20 tokens keep gaining popularity and
awareness there are concerns about congestion, which could lead to
potential higher gas or transaction fee issues. Another
consideration is that BRC-20 tokens run on ordinals protocol, a
protocol that is still in its early phases of development, which
means there is a possibility of it being vulnerable or having
glitches as the technology evolves. Related Reading: How To Buy,
Sell, And Trade Tokens on The Polygon Network The Bitcoin Request
for Comment (BRC-20) token standard is still in its early stage of
development, so it is safe to say it is still semi-fungible
compared to the ERC-20 token standard. It has some limitations,
like it being sold and bought in sets, you are limited to what is
available in the DEX marketplace, and you can’t buy any amount you
want, whether in large or small quantities. BRC-20 Tokens DEX
Exchanges This article is going to cover how to trade Bitcoin
Request for Comment (BRC-20) tokens on UniSat, the most used
decentralized exchange (DEX) to trade BRC-20 tokens. You can also
check out other DEX like Xverse and Alex. How To Install And Set up
UniSat Wallet To trade on a decentralized exchange (DEX) you
need a wallet, go to your Chrome browser and search for the UniSat
Wallet extension as shown below, click on “Add to Chrome” to
download and add the UniSat Wallet extension to your Chrome
browser. Click the “Create new wallet” button to create your UniSat
Wallet. Create your password, use a password you can remember, as
you would need your password to make transfers and click on the
“Continue” button. The Secret Recover Phrase page will pop up.
Write down your secret phrase and keep it in a safe place because
anyone who has access to your secret phrase has access to your
wallet. Then click on “Continue”. Related Reading: How To Buy,
Sell, And Trade Crypto Tokens On The Tron Network Expect you are a
crypto genius I would advise you to leave the Step 2 page the way
it is, just click on “Continue”. The“Compatibility Tips” will pop
up check the boxes and click on “Ok” You have now successfully
created your UniSat wallet, where you can receive, send, and buy
crypto. When you click on “Receive” you will be given a QR code
that you can scan on your phone and also an option to copy your
wallet address manually. When you click on “Send”, you will
see where to fill in the Recipient address you want to send your
Bitcoin to, and underneath it is where you will input the amount of
Bitcoin you want to send. You can choose the transfer speed you
want, but note that the faster the transfer, the higher your gas
fee or transaction fee. I would not recommend that you use the
“Buy” feature as it is too expensive, and it is better to buy your
Bitcoin on a centralized exchange and send it to your UniSat
wallet. Related Reading: How To Buy, Sell, And Trade Crypto Tokens
On The Cardano (ADA) Network How To Buy, Sell, and Trade on
UniSat To buy, sell, and trade BRC-20 tokens you need Bitcoin
in your wallet for gas fees and Bitcoin to buy the BRC-20 token. So
go to any centralized exchange of your choice like Binance, OKX, or
ByBit to buy your Bitcoin, copy your UniSat wallet, paste it into
the recipient address on the centralized exchange, and send the
Bitcoin. Now that your wallet has been funded it is time to trade,
go to the UniSat website, and click on “Connect”. Click on “UniSat
Wallet”, and connect your UniSat Wallet. Once your UniSat Wallet is
connected, Click on “brc-20”, as shown below, to see the full list
of BRC-20 tokens you can trade on UniSat. Click on any of the
BRC-20 tokens you which to buy, for example, I clicked on the
“meme” token below. There are buttons on the top right of the
screenshot circled in red “View” and “Trade”. If you click on View,
it will take you to OKLINK where you can see the meme BRC-20
inscription with all its details, Total Supply, Limit per mint,
Holders, Minted tokens, and Price. When you click on Trade, it will
take you to the UniSat Marketplace, where you will see all the
listed meme token inscriptions you can buy. Click on any of the
sellers that have the exact number of meme inscriptions you want to
buy or any of the sellers that come close to how many meme
inscriptions you want to buy. After selecting a seller, the buy
page below with the “Buy Now” button will pop up. Related Reading:
How To Buy, Sell, And Trade Crypto On The Base Network Click on
“Buy Now” and the confirmation page to confirm your order will pop
up, click on “Confirm” and you have bought the BRC-20 token. After
buying your BRC-20 and you want to sell, go to the marketplace,
click on “my brc-20”, click on the inscription you want to
sell, and then click on the list. Click on the plus button, input
the exact number you like to sell, and click on “Next”. Click “Next
again”. “Sign and pay”, and “Done”, your inscriptions will be
listed. When your order gets picked up, your inscription will be
sold, and the money will be transferred to your wallet. Related
Reading: How To Buy, Sell, and Trade Tokens On The Arbitrum Network
Use CoinW To Track The Price Of Your BRC-20 Tokens CoinW is a
centralized crypto exchange where you can track your BRC-20 and use
the charts to make well-informed decisions on the token you want to
buy. To search for BRC-20 tokens, click on “Market”, click on
“Hot”, and then click on “BRC-20”, as shown below. For example, I
clicked on ORDI, as you can see in the chart below. Here is another
example with RATS, another BRC-20 token on the list. Conclusion In
conclusion, BRC-20 tokens provide a novel avenue for tokenization
within the Bitcoin blockchain, expanding its utility beyond
traditional cryptocurrency transactions. They offer a seamless
integration of additional data onto satoshis, enabling a broader
range of use cases and applications. Related Reading: How To
Buy, Sell, And Trade Tokens On The BSC Network With BRC-20 tokens,
the Bitcoin ecosystem gains enhanced functionality and opens up
possibilities for innovative decentralized finance (DeFi)
solutions. By leveraging the Ordinals protocol, BRC-20 tokens
contribute to the growing diversity and maturity of the blockchain
industry as a whole. Featured image from IQ.wiki
Avalanche (COIN:AVAXUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Avalanche (COIN:AVAXUSD)
Historical Stock Chart
From May 2023 to May 2024