The future of BRC20 is exciting

What is BRC20

In order to make it easy for more people to understand the BRC20 and facilitate everyone to have an in-depth understanding of this field, let’s discuss the BRC20 in the most popular way and lead you into this exciting track.

In the blockchain space, the way we usually issue tokens is through the issuance of ERC20 tokens through the smart contract of the ETH network. But in the BTC network, there is no smart contract, and there are only other ways to issue tokens, so @domo (the inventor of BRC20) invented a protocol that can issue tokens on the BTC network, which is called BRC20:

1 BTC = 100 million satoshi (the smallest unit of BTC, 1 satoshi, composed of 100 million satoshi 1 BTC), through the BRC20 protocol to issue a token or multiple tokens, NFTs, domain names, I will use popular examples and text language to explain the principle.

Every time we transfer money BTC or other blockchain networks, we can fill in remarks in addition to the transfer amount. **

BRC20 token issuance is also a similar principle, determine the total amount of BRC20 tokens that need to be issued, deployment, mint (Mint), and transfer, and enter the required information on the remarks box of each satoshi transferred out through the BRC20 protocol as a mark.

For example, we set the token name to AA, the total number of tokens is 1000, and the issuance method is deployed. When the user comes to mint AA tokens, write in the remarks box: AA tokens, with a total issuance of 1,000 tokens, which will be issued in the form of deployment. After the user mints it, he gets the BRC20 token of AA, also known as the inscription. The identification information of these BRC20 tokens can only be identified by indexers, and protocols that support BRC20 will have their own indexers.

The future of BRC20

The new infrastructure upgrade not only improves the performance of the BRC20 protocol, but also introduces more real-world use cases and features, gradually moving it away from the impression that it is just a speculative tool. Developers are actively exploring new projects to build on BRC20, and industry leader Unisat has launched the AMM DEX of the BRC20 protocol, as if seeing the early prototype of ETH DEFI.

There are no practical applications other than wallet applications, indexers, and the DEX infrastructure built by Unisat. BRC20 tokens, which rely on emotional speculation, are still dominating the market, which is also considered to be an early ETH market ICO.

#ORDI #SATS #RATS Supplements are welcome

Source: Golden Finance