A new token standard on Bitcoin (BTC) has taken off, sparking a flurry of new activity on the largest blockchain by market cap.
BRC-20 is a new experimental token standard built for Bitcoin, created by a pseudonymous on-chain analyst who goes by Domo on Twitter.
BRC-20s, which borrow Ethereum’s “ERC-20” name, use ordinals, or inscriptions built into Satoshis, to deploy, mint and transfer tokens. While loosely modeled after the ERC-20, the BRC-20 is substantially distinct due to the different architecture of Bitcoin’s blockchain.
Explains Domo,
“This is just a fun experimental standard demonstrating that you can create off-chain balance states with inscriptions. It by no means should be considered THE standard for fungibility on Bitcoin with ordinals, as I believe there are almost certainly better design choices and optimization improvements to be made.
Consequently, this is an extremely dynamic experiment, and I strongly discourage any financial decisions to be made on the basis of its design. I do, however, encourage the Bitcoin community to tinker with standard designs and optimizations until a general consensus on best practices is met (or to decide that this is a bad idea altogether!).”
BRC-20s, while experimental, have skyrocketed in popularity, and are now making up a huge portion of the transactions on the Bitcoin network.
According to Dune Analytics, BRC-20 transactions have now passed over 2.4 million in just several weeks, generating over 110 BTC in fees for miners.
According to BRC-20 tracker Ordspace, the total market cap of BRC-20s is currently $97,048,788.032. Bitcoin is trading at $28,404, sideways on the week.
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Source: https://dailyhodl.com/2023/05/03/new-brc-20-token-trend-goes-parabolic-on-bitcoin-btc-network-as-transactions-skyrocket-above-2400000/