The emergence of BRC20 tokens has undoubtedly been the talk of the town for the last couple of months. People have largely known about Ethereum-based fungible tokens (ERC-20 tokens), but is it really possible to develop fungible tokens on Bitcoin? A question that has crept into a lot of minds and fortunately, we have the answer for you. BRC20 tokens have already taken upstage in the Crypto world and are likely to have a strong presence in the near future.
In March 2023. a pseudonymous programmer called Domo ensured minting fungible BRC20 tokens was possible on the Bitcoin blockchain. The main theories which helped in the introduction of the BRC20 Token standard were Bitcoin ordinals along with the process of inscription. For a long time, the Bitcoin network was hard to fork due to the decentralized nodes and was applicable only for transactions and payments. However, the applications of Bitcoin have extended now.
Although the BRC20 token is still a big work in progress, the investment has already started among traders. The sudden surge in Bitcoin transaction fees is due to the demand for BRC20 tokens. In this blog, we at Coinsclone have covered entirely about BRC20 token development, how it works, the advantages, and the list of popular BRC20 tokens list. Before that, let us see an overview of BRC20 tokens.
Overview of BRC20 Token Development
BRC20 token development is the process by which BRC20 (Bitcoin Request for Comment 20) tokens, are created on the Bitcoin blockchain through the ordinals protocol. The experimental token standard allows minting and transferring fungible tokens on Bitcoin. Although the BRC20 token development has been inspired by ERC-20, there isn’t a smart contract in the case of BRC20.
Next up, let us look into the difference between BRC20 tokens and ERC-20 tokens.
What is the difference between BRC20 Token & ERC- 20 Token?
As we said earlier, the BRC20 token and the ERC-20 token have notable differences. Taking a look at these differences will help you to understand better.
Apart from this, one of the main notable applications of Ethereum was the building of Dapps. Any Defi protocol whether it may be a lending or borrowing platform could run through the Ethereum network. So far, it hasn’t been possible with the Bitcoin network, but there could be a slight change to that as well.
Moving on, it’s important to know how a BRC20 token works.
How does the BRC20 Token work?
Technically, one Satoshi is the smallest unit of Bitcoin and each Bitcoin is made up of approximately 100,000,000 satoshis. The Ordinals protocol system allows numbering these satoshis based on the order in which they were mined and transferred. Therefore, extra data were added to the satoshi in a process called “inscription” which in turn increased the data transaction size while storing on the blockchain.
With the same Ordinals inscription protocol, BRC20 tokens use the JSON data which helps to execute characteristics like minting, transfer, and deploying. The process is nowhere easier or user-friendly yet but still has a few support services which have instilled trust among the traders.
Here’s how you can buy BRC20 tokens,
- You can visit a Centralized exchange to buy or sell BRC20 tokens. Binance, OKX, Deepcoin, Bitrue, and CoinW are some of the exchanges that support BRC20 tokens at present.
- You will need an Ordinal wallet to store and access the BRC20 tokens as a normal Crypto wallet doesn’t support those tokens. You can create a wallet by going to Ordinalswallet.com and make your seed phase is backed up properly.
- You can check the listed BRC20 tokens on the same platform by just clicking BRC20 in the navigation bar.
- Select your preferred token from the list of BRC20 tokens and click the “buy now” option to purchase it.
- The token gets transferred to your Ordinal wallet and you can trade them in the supported exchanges.
Meanwhile, it’s crucial to discuss the advantages of BRC20 token development.
Advantages of BRC20 Token Development
BRC20 token might be an experiment but still it has certain advantages in the Crypto industry. Here are a few of the advantages of BRC20 Token Development.
Smart contract capabilities for decentralized application development
BRC20 tokens do not have the luxury of smart contracts to automate executions inside a protocol. However, through ordinal inscription, BRC20 tokens have made it possible to create fungible tokens on the Bitcoin network. It is expected that sooner or later, the BRC20 tokens will open up smart contract capabilities which it turn will improve the probability of decentralized application development in the Bitcoin blockchain
Enhanced security through encryption and distributed consensus
As we know BRC20 tokens are created on the Bitcoin blockchain, and the security is more compact than the tokens created on the Ethereum blockchain. One of the main reasons why users have invested in Bitcoin is its difficulty in fork. Now, with the BRC20 token’s arrival, one can expect enhanced security through encryption.
Improved liquidity and trading opportunities
Liquidity is a major concern in Centralized Crypto exchanges and thankfully, BRC20 tokens are likely to solve this issue. We do know that Bitcoin price has been on the surge constantly and traders are queuing up in front of exchanges. However, with the BRC20 tokens introduction, more and more users will trade in Crypto exchange thereby, increasing the liquidity factor and trading chances.
Dominant BRC20 Token List in 2023
BRC20 tokens have had a staggering market cap this year and most of these tokens have been created as meme coins. Here are the top five BRC20 tokens in 2023.
ORDI was the first deployed BRC20 token and it had a huge effect instantly. The Crypto coin had already passed a market cap of 210 million. With a circulating supply and maximum supply of 21 million tokens, ORDI ranks among the top BRC20 tokens.
VMPX has been around for a while now and it’s current price is less than a dollar. It has a market cap of nearly 10 million with a maximum supply of 108.62 million tokens. The VMPX meme token is available for trading in the top cryptocurrency exchanges like CoinW, Bitget, BingX, Hotcoin Global, and BitMart.
PEPE is a popular BRC20 meme token and this year, the token reached a peak market of 1.6 billion. The Crypto asset is highly trending at present and its circulating supply is around 39 million. However. Its maximum supply is nearly 42 million and the top Cryptocurrency exchanges for trading these tokens are Binance, CoinW, OKX, Deepcoin, and Bitrue.
PIZA is another name that has been familiar in the Crypto circuit and so far, it has grabbed a market value of just over 4 million. The coin has both, a circulating supply and a maximum supply of 21 million and its 24-hour volume is usually on the surge.
Probably, one of the best BRC20 meme tokens is NALS and it reached an astonishing market cap of $2,576,604 in the month of May 2023. The circulating supply of these tokens is 21 million while it can be traded on exchanges like Bitget, BingX, SuperEx, DigiFinex, and BitForex.
Finally, with the number of benefits associated with BRC20 tokens, we will let you know why you should choose Coinsclone for BRC20 token development.
Why choose Coinsclone for BRC20 Token Development?
Coinsclone has been a premier company in terms of Crypto token development and BRC20 token development is not an exception. The expert group of developers with us have a terrific portfolio in the blockchain field and we thrive on completing new projects on time. Thus, startups can be assured that the project will be completed to the quality as well as within the specified time.
Besides, another major factor is the trust we have earned from our clients. Checking out our reviews which would be helpful for you to understand the value we can bring to the table. Do get in touch with us to discuss any Crypto-related business projects and we are waiting to enhance your ideas.