The BRC-20 and ERC-20 standards may sound similar, but they are not the same. The BRC-20 does not have the capability to communicate with smart contracts, while the ERC-20 can.
The demand for “Bitcoin Request for Comment” or BRC-20 tokens has increased dramatically, causing their market value to rise by several hundred percent. These tokens are created using Ordinals and are stored on the Bitcoin base chain.
At present, the total value of over 8,800 BRC-20 tokens in the market is $137 million. This is a huge increase of 682% from $17.5 million just a week ago. This information is provided by Ordspace, a company that tracks these tokens. However, the website briefly displayed the total value as $2.93 billion on Tuesday, which was not accurate and was probably due to some of the tokens having low trading activity.
With BRC-20's, the #Bitcoin blockchain IS the exchange.
There is no Binance, no Coinbase required. Just a Bitcoin wallet.
You create, buy and sell with sats. Bitcoin is now gas. https://t.co/oAA8K1iqXF
— Mark Jeffrey (@markjeffrey) April 30, 2023
In March, a person using a fake name, Domo, developed the BRC-20 token standard to make it easier to create and trade identical tokens on the Bitcoin blockchain. This was done shortly after Ordinals Protocol was launched, which allowed people to include references to digital art in small Bitcoin transactions. This was an experimental idea.
Ordinals Protocol on Bitcoin has had some unexpected results, such as the creation of the BRC-20 token standard. These tokens can be traded as if they are identical to each other. This was mentioned by Dynamo DeFi, a pseudonymous analyst and yield farmer in a weekly newsletter. He also mentioned that since their creation, BRC-20 tokens have accounted for almost 6% of all Bitcoin transactions.
The BRC-20 and ERC-20 token standards may seem similar, but they have differences. The BRC-20 cannot communicate with smart contracts, while the ERC-20 is a technical standard used to create identical tokens on Ethereum, which is a blockchain that supports smart contracts.
According to Binance, the BRC-20 token standard is not like the standards used in Ethereum or other similar blockchains, where smart contracts control the rules of the tokens. Instead, BRC-20 is just a way to save a script on the Bitcoin blockchain and use it to assign tokens to bitcoin and allow them to be transferred from one person to another.
The BRC-20 tokens that are used the most often are mostly meme coins. These are cryptocurrencies that started as internet memes or have a funny characteristic. Currently, the three most popular BRC-20 coins are ORDI, OG, and PEPE.
Mark Jeffrey from Boolean Fund believes that with the creation of BRC-20 tokens, there is no longer a need for cryptocurrency exchanges.
Mark Jeffrey, who works for Boolean Fund, thinks that because of BRC-20 tokens, there is no need for crypto exchanges anymore. He explained that the Bitcoin blockchain is now the exchange, and people only need a Bitcoin wallet to create, buy, and sell these tokens using satoshis (a unit of Bitcoin). Jeffrey also mentioned the increase in the market value of BRC-20 tokens.
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