Bitcoin NFT Wallet

BRC-20 is an experimental token standard - somewhat similar to ERC-20 on Ethereum - that enables the minting and transferring of fungible digital currencies on the Bitcoin blockchain. 

Made possible by the Ordinals protocol, BRC-20 tokens can be created, transferred, and traded on Bitcoin, birthing in a new class of Bitcoin-native L1 assets.

Understanding how Bitcoin Ordinals work is crucial in gaining a comprehensive understanding of BRC-20 tokens. The Ordinals protocol serves as a means of numbering satoshis and enables users to associate additional data with these satoshis, a procedure referred to as "Ordinal inscriptions."

In the BRC-20 token standard, tokens use Ordinal inscriptions of JSON (JavaScript Object Notation) data for deploying token contracts, minting tokens, and facilitating token transfers. 

Presently, the BRC-20 token standard permits the creation of BRC-20 tokens through the deploy function, the minting of a specified quantity of BRC-20 tokens using the mint function, and the transfer of a designated amount of BRC-20 tokens via the transfer function.

The BRC-20 token standard was developed by a pseudonymous programmer called Domo and released into the wild in March 2023. Due to the relative ease with which BRC-20 assets can be minted, countless anonymous and pseudonymous developers have launched meme coins on Bitcoin using this new token standard.

While BRC-20 tokens have taken inspiration from Ethereum’s ERC-20 token standard, there are several significant differences between the two types of tokens. 

Firstly, BRC-20 tokens exist on the Bitcoin blockchain, while ERC-20 tokens exist on the Ethereum blockchain. 

Secondly, BRC-20 tokens don’t utilize smart contracts, which means they have fewer functionalities than their counterparts on Ethereum. For example, ERC-20 tokens can interact with decentralized applications (dApps) to enable DeFi use cases, such as decentralized borrowing and lending, thanks to their EVM-compatibility. 

Thirdly, ERC-20 tokens have been around since 2015, experiencing widespread usage in 2017, while BRC-20 tokens have only been around since March 2023. ERC-20 tokens are, therefore, a much more established token standard that has undergone rigorous testing and has proven to operate reliably. Conversely, BRC-20 tokens are still in the experimental stage. 

Fourthly, BRC-20 tokens still lack any real utility. Conversely, ERC-20 tokens can be used to take part in the governance process of a decentralized protocol, as an in-platform transactional currency, or to earn rewards through staking, for example.

You can buy BRC-20 tokens using your Xverse wallet from Ordinals marketplaces, like Ordinals Wallet and Unisat, centralized exchanges like Binance, KuCoin, and Gate.io, or decentralized exchanges like ALEX. 

Xverse is the leading Bitcoin wallet that offers advanced features like BRC-20 support. The self-custody wallet allows you to securely store, send, and receive BRC-20 tokens on mobile and desktop

To invest in BRC-20 tokens, you first need an Ordinals-compatible Bitcoin wallet like Xverse that enables you to store your BRC-20 tokens. Next, you need to fund your wallet with BTC to cover transaction fees. You can purchase bitcoin directly in your Xverse wallet thanks to the wallet’s fiat on-ramp feature. Then, you need to connect your wallet to an Ordinals marketplace or a decentralized exchange to buy the BRC-20 token(s) you want to purchase. Finally, you confirm the purchase using your Xverse wallet and wait for the tokens to arrive in your wallet. 

Alternatively, you could log onto a centralized exchange and purchase BRC-20 tokens there. If you use a centralized exchange, however, make sure to transfer your tokens into a secure, non-custodial BRC-20 wallet like Xverse to ensure you have complete control over your assets. 

You can seamlessly transfer BRC-20 tokens from one wallet to another using your Xverse BRC-20 token wallet. 

All you need to do is open your Xverse wallet, choose the token you want to transfer, click send, put in the amount and the recipient address, and click next. Finally, you need to review the transaction details, including the fees, and click ‘Confirm’ if you want to proceed with the transfer.

According to Dune Analytics, over 40 million BRC-20 inscriptions have been minted at the time of writing. The total number of Ordinal Inscriptions to date is a little over 50 million, which makes BRC-20 tokens the most popular type of inscription in the Ordinals market.

Binance is a global cryptocurrency exchange platform where you can buy and sell digital currencies and tokens. BRC-20 tokens on Binance are Bitcoin-native fungible tokens somewhat similar to ERC-20 tokens on Ethereum. You can find some of the most popular BRC-20 tokens on the platform, including PEPE, ORDI, MEME, SATS, and more.

While both tokens are specifically designed for the Bitcoin network, BRC-20 and SRC-20 have notable differences in functionality. While BRC-20 facilitates the creation and transfer of fungible tokens on the Bitcoin network, SRC-20 is designed to create digital artifacts on the Bitcoin blockchain. 

Moreover, BRC-20 tokens leverage the Ordinals protocols while SRC-20 tokens are created using the STAMPS (Secure Tradeable Art Maintained Securely) protocol. BRC-20 prioritizes fast transaction speed and affordability, while SRC-20 is more resource-intensive and more secure when it comes to immutability.

You can mint BRC-20 tokens using Xverse wallet and the Xverse Mint App. Here’s how it works: 

1. Download the Xverse Chrome extension.
2. Fund your Xverse wallet with bitcoin. 
3. Access the Xverse Mint App at brc20.xverse.app.  
4. Choose the BRC-20 token you want to mint and click ‘Mint.’ 
5. Type in the amount and the number of repeat mints you want to make.
6. Click ‘Submit’ and confirm the mint using your Xverse wallet
7. Wait until the tokens are reflected in your Xverse BRC-20 wallet.

The BRC-20 token standard is still in its infancy and was created as a “fun experimental standard” to demonstrate that you can mint digital tokens on Bitcoin. However, according to its creator, it shouldn’t be considered the standard for fungible assets on Bitcoin with Ordinals, and no financial decisions should be made based on its design. 

In other words, BRC-20 tokens are very risky, so make sure you do your own research before deciding to purchase any.