Cryptocurrencies have evolved beyond the basic concepts of Bitcoin and Ethereum, introducing a myriad of tokens that serve various purposes within the blockchain ecosystem. One such token standard that has gained prominence is BRC-20.
In this blog post, we will completely explain BRC-20 token, exploring its definition, differences from ERC-20, development process, how to buy it, promotion strategies, and providing real-world examples to enhance your understanding.
Table of Contents
What is BRC-20?
The BRC-20 token standard is like a special type of token on the Bitcoin network. It was created in March 2023 by someone named Domo. This standard helps make and move special tokens on Bitcoin, like Ordi, Vmpx, and Pepe.
Unlike other similar standards, like ERC-20, BRC-20 doesn’t use smart contracts. Instead, it uses something called ordinal inscriptions. These inscriptions let people write things like code, images, and text on tiny parts of a Bitcoin, called Satoshi. One Bitcoin has 100 million Satoshi, and each one is a small part of it.
This is different from other tokens that use smart contracts. Ordinals can only do a few things, like making new tokens and sending them to others. Smart contracts can do more things.
BRC-20 tokens have a cool feature – they are fungible. This means you can swap them with each other because they have the same value. They are like special, unique stickers you can put on tiny parts of Bitcoin!
Difference Between BRC-20 vs ERC-20
While BRC-20 shares similarities with ERC-20, there are key distinctions. The primary difference lies in the blockchain they operate on. BRC-20 is specific to the Binance Smart Chain (BSC), whereas ERC-20 tokens are designed for the Ethereum blockchain.
This choice of blockchain affects factors such as transaction speed and cost. BSC, known for its high throughput and low fees, provides an alternative for projects seeking efficiency and cost-effectiveness.
How to Develop BRC-20 Token
Developing a BRC-20 token involves several steps, including smart contract creation and deployment. Developers can utilize tools like Remix or Truffle for coding and testing. The smart contract must adhere to the BRC-20 standard, specifying functions such as transfer, approve, and balanceOf.
After coding, deployment on the Binance Smart Chain follows, often facilitated by platforms like Binance Chain Extension Wallet.
How to Promote BRC-20 Token
Promoting a BRC-20 token is crucial for its success. Strategies include engaging with the community through social media, creating informative content, and fostering partnerships.
Leveraging decentralized finance (DeFi) platforms on BSC can also enhance visibility. Additionally, liquidity provision on decentralized exchanges (DEXs) like PancakeSwap can facilitate token trading.
Examples of BRC-20 Tokens
Several successful projects have implemented BRC-20 tokens for their ecosystems.
Notable examples include Venus (XVS), an algorithmic money market and synthetic stablecoin protocol, and BakeryToken (BAKE), the native utility token of BakerySwap, a decentralized automated market maker (AMM) platform on BSC.
How to Buy BRC-20 Tokens
If you want to buy BRC-20 tokens, here’s a simple guide to help you:
- Get the Right Wallet: To buy BRC-20 tokens, you need a Bitcoin Taproot-enabled wallet like UniSat Wallet or Ordinals Wallet. Make sure your wallet supports BRC-20 tokens.
- Connect Your Wallet: When you’re ready to buy, connect your wallet to a marketplace that supports BRC-20 tokens. Ensure your wallet has enough Bitcoin (BTC) for transaction fees.
- Check the Token Price: Before making a purchase, compare the price of BRC-20 tokens with rates in the wider market. If the price looks good, you can proceed to the next step.
- Verify the Seller: It’s crucial to verify if the seller is genuine. Cross-verify the wallet address balance with the balance on the Unisat.io website. This ensures that the wallet balance matches the seller’s, helping you avoid scams.
- Ensure Safety: Once you confirm that the wallet details align and the seller is genuine, it’s considered safe to make the purchase. Always prioritize safety to protect your investment.
By following these steps, you can navigate the process of buying BRC-20 tokens securely and confidently. Remember to use reputable platforms and double-check details to avoid potential risks.
FAQs about BRC-20
Q1: Can BRC-20 tokens be transferred to other blockchains?
No, BRC-20 tokens are specific to the Binance Smart Chain and cannot be directly transferred to other blockchains. Interoperability between blockchains requires additional protocols.
Q2: What distinguishes BRC-20 from other token standards on BSC?
BRC-20 is tailored for fungible tokens on the Binance Smart Chain, while other standards like BEP-2 and BEP-721 cater to different token types.
Q3: Are BRC-20 tokens subject to the same gas fees as ERC-20 tokens?
No, BRC-20 tokens benefit from the low transaction fees on the Binance Smart Chain, offering a cost-effective alternative to projects and users.
Bottom Line
In conclusion, understanding BRC-20 is essential for anyone navigating the diverse world of blockchain and cryptocurrencies. From development to promotion, BRC-20 tokens present unique opportunities and challenges that can shape the future landscape of decentralized applications and digital finance.
About the author