By ChainCatcher, Adapted by English Content Creator
The rise of BRC20 tokens, exemplified by Ordi's price surge past $10 and a market cap exceeding $200 million, has sparked a frenzy in crypto communities. These tokens, initially free to mint with only gas fees required, have created overnight millionaires—early adopters who minted 1,000 Ordi tokens now hold assets worth nearly $10,000.
Unlike airdrops, BRC20 tokens offer a simpler path to wealth: no complex链上 operations or restrictive conditions—just timely minting during token launches. With Bitcoin链上 fees as low as a few dollars during off-peak times, the barrier to entry is remarkably low.
Fueled by soaring prices and success stories, BRC20 has become crypto's hottest narrative, attracting users, projects, and exchanges alike. Major platforms like Huobi and OKX are racing to support BRC20 trading, while Element plans to launch a dedicated BRC20 marketplace.
But what exactly are BRC20 tokens? How can users participate? And what risks should they anticipate?
What Are BRC20 Tokens? How to Mint Them?
BRC20 is an experimental token standard on Bitcoin, created by @domodata on March 8, 2023, using the Ordinal protocol. Similar to Ethereum’s ERC20, it defines token issuance rules—name, supply, and transfers—but operates without smart contracts. Instead, it leverages Ordinal inscriptions formatted as JSON data to deploy, mint, and transfer tokens.
Key Components:
- Ordinal Protocol: A numbering system for satoshis (sats), enabling unique identifiers for each unit of Bitcoin. By attaching data (text, images, or code) to these sats, users create "inscriptions," forming the basis for Bitcoin NFTs and BRC20 tokens.
BRC20 Standards: Three core functions:
- Deploy: Initialize a token (name, max supply, mint limit).
- Mint: Create tokens (e.g., Ordi’s 21M supply).
- Transfer: Move tokens between wallets.
Example: Deploying Ordi required inputting JSON data specifying its 21M supply and 1,000-per-mint limit.
How to Mint BRC20 Tokens?
- Setup: Install Unisat Wallet (compatible with BRC20).
- Fund: Transfer BTC to a
bc1paddress. - Inscribe: Select "BRC20" → Choose "Deploy" (for new tokens) or "Mint" (existing ones).
- Pay Gas Fees: Higher fees during congestion boost transaction priority.
Buying BRC20 Tokens: Options and Risks
For Unminted Tokens:
- Directly mint via Unisat (pay gas fees only).
For Minted Tokens:
- OTC Deals: Risky; requires trusted third-party escrow.
- Marketplaces: Like Unisat’s (minimum 20积分 entry; ~$160 fee).
Notable BRC20 Tokens:
- Ordi: First BRC20 token; $10, 5,261 holders.
- PEPE: Meme coin; $0.68, 4.2M supply.
- Meme: $91, 99,999 supply.
Tools:
- BRC20.io: Price/market cap tracker.
- Ordiscan: Transaction explorer.
- Ordspace: Stats platform.
Risks and Criticisms
BRC20’s 12,861+ tokens (total cap: $280M) are mostly memecoins with speculative appeal. Critics argue they clog Bitcoin’s network without adding utility, while proponents see them expanding Bitcoin’s use cases and miner revenue (March miner earnings hit $718M).
Alternatives like ORC20 (flexible naming, royalties) and LTC20 (Litecoin’s version) lack comparable traction.
FAQ
Q1: Is BRC20 safer than ERC20?
A1: BRC20 lacks smart contracts, reducing attack vectors but limiting functionality.
Q2: Can I trade BRC20 on major exchanges?
A2: Not yet—OTC or niche platforms like Unisat are current options. Huobi/OKX may soon list Ordi.
Q3: Why are most BRC20 tokens memes?
A3: Low technical barriers and viral potential drive meme-centric launches.
Q4: What’s the biggest risk?
A4: Illiquidity—many tokens have few holders (e.g., Ordi: 5,261) and thin trading volume.
Q5: How do miners benefit?
A5: Increased transactions = higher gas fees → boosted miner revenue.
Disclaimer: This content is for informational purposes only and does not constitute investment advice.