{"id":"brc-20","title":"BRC-20","content":"**BRC-20**, or “Bitcoin Request for Comment,” is a token standard for [Ordinals](https://iq.wiki/wiki/bitcoin-ordinal). The standard allows for the issuance and transfer of fungible tokens on [Bitcoin](https://iq.wiki/wiki/bitcoin) similar to the [ERC-20](https://iq.wiki/wiki/erc-20) standard on [Ethereum](https://iq.wiki/wiki/ethereum) however BRC-20 tokens are not compatible with [smart contracts](https://iq.wiki/wiki/smart-contract). [\\[7\\]](#cite-id-3gsfpmr9wi5) [\\[6\\]](#cite-id-wj2yqmqwcyj) [\\[1\\]](#cite-id-g1bmbn7hnk)\n\n# History\n\nOn January 21, 2023, the Bitcoin Ordinals protocol was launched on the [Bitcoin](https://iq.wiki/wiki/bitcoin) [mainnet](https://iq.wiki/wiki/mainnet) by software engineer and bitcoiner, [Casey Rodarmor](https://iq.wiki/wiki/casey-rodarmor). He began working on the project in 2022, after the Bitcoin Taproot upgrade in November 2021 which made it possible to create programmable [smart contracts](https://iq.wiki/wiki/smart-contract) on the [blockchain](https://iq.wiki/wiki/blockchain), called inscriptions. This concept led to the creation of [Bitcoin-based NFTs](https://iq.wiki/wiki/bitcoin-ordinal) and BRC-20 tokens, thus enabling the concept of Ordinals. [\\[8\\]](#cite-id-jk7avo7tutp)\n\n## Creation\n\nBRC-20 token standards were created and deployed on March 8, 2023 by a pseudonymous programmer named Domo as an experiment to make minting fungible tokens on Bitcoin possible. The first BRC-20 token deployed was called [Ordi](https://iq.wiki/wiki/ordi-token). [\\[2\\]](#cite-id-8z0mm8celv2)[\\[6\\]](#cite-id-wj2yqmqwcyj)\n\n# Overview\n\nBRC-20 tokens utilize Ordinals inscriptions of JSON (JavaScript Object Notation) data to deploy token contracts, mint, and transfer tokens. [\\[2\\]](#cite-id-8z0mm8celv2) The BRC-20 token standard allows creating a BRC-20 token with the deploy function, minting an amount of BRC-20 tokens with the [mint](https://iq.wiki/wiki/minting) function, and transferring an amount of BRC-20 tokens via the transfer function. [\\[2\\]](#cite-id-8z0mm8celv2)\n\nThe BRC-20 token standard has gained some adoption as people experiment with its capabilities. BRC-20 tokens are fungible, meaning they are interchangeable and easily traded on exchanges. BRC-20 tokens are built on the [Bitcoin protocol](https://iq.wiki/wiki/bitcoin), which secures [Bitcoin](https://iq.wiki/wiki/bitcoin-btc), the world's largest and most valuable [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency).\\\n$$widget0 [YOUTUBE@VID](TuGw4dtZoQw)$$\n\n## Differences from ERC-20\n\nDespite the similarity in their names, there are significant differences between the two tokens. BRC-20 tokens exist on the Bitcoin network, while ERC-20 is a standard on the [Ethereum](https://iq.wiki/wiki/ethereum) network. BRC-20 tokens don’t use [smart contracts](https://iq.wiki/wiki/smart-contract) and, therefore, have much less functionality. On the contrary, ERC-20 tokens can interact with other protocols and applications to enable a wide range of services, including borrowing and lending. The BRC-20 token standard is an experiment by programmers to facilitate fungibility on the Bitcoin blockchain and was only created in March 2023. Therefore it has had less testing than the ERC-20 standard which was created in 2015. [\\[2\\]](#cite-id-8z0mm8celv2)\n\n## Growth\n\nIn May of 2023, less than a month after the token standard was created, BRC-20 passed a market cap of $100 million reaching a high of $137 million on May 2, 2023. In April and May the standard continued to grow and on May 9, the total market capitalization of BRC-20 Bitcoin tokens briefly reached a high of over $1 billion, with a total trading volume of $207.7 million that day. Some of the most notable tokens making up that market cap included [ORDI](https://iq.wiki/wiki/ordi-token), NALS, VMPX, PEPE and [MEME](https://iq.wiki/wiki/meme-dollarmeme). [\\[4\\]](#cite-id-5js1k7wrm07)[\\[5\\]](#cite-id-doi0mczbhx5)\n\nOn December 6, 2023, ORDI, one of the leading BRC-20 tokens within the Ordinals ecosystem, achieved a significant milestone by becoming the first BRC-20 token to surpass a market capitalization of $1 billion. This surge represented a nearly 1,000% increase in market cap since November 5, reaching $1.1 billion. [\\[9\\]](#cite-id-82xzsombamv)\n\n## Criticism\n\nThe Bitcoin community’s opinion is divided on ordinals and BRC-20. Some have embraced this new experiment, while others believe they go against [Satoshi Nakamoto](https://iq.wiki/wiki/satoshi-nakamoto)’s original vision of Bitcoin. While BRC-20 usage has grown the token standard is much newer and less tested than token standards like [ERC-20](https://iq.wiki/wiki/erc-20). Fewer developers, tools, and resources are available to build and manage BRC-20 tokens since Bitcoin is primarily known as a store of value rather than a platform for creating and managing tokens. [\\[3](#cite-id-kaesfp43iih)","summary":"BRC-20 is a Bitcoin-based token standard for Ordinals, enabling the creation, minting, and transfer of fungible tokens similar to Ethereum's ERC-20.","images":[{"id":"QmNRx67GawRBuJsLCgyQZWFPazwKZHjf1AMXLsVgJm6ozg","type":"image/jpeg, image/png"}],"categories":[{"id":"glossary","title":"glossary"}],"tags":[],"media":[{"id":"https://www.youtube.com/watch?v=TuGw4dtZoQw","size":"0","name":"TuGw4dtZoQw","type":null,"source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"g1bmbn7hnk\",\"url\":\"https://coinjournal.net/news/brc-20-tokens-have-major-flaws-and-issues-mintlayer-ceo-says/\",\"description\":\"Coinjournal on the BRC-20 token standard\",\"timestamp\":1683918598343},{\"id\":\"8z0mm8celv2\",\"url\":\"https://academy.binance.com/en/glossary/brc-20-tokens\",\"description\":\"Binance Academy Glossary on BRC-20\",\"timestamp\":1683918673472},{\"id\":\"kaesfp43iih\",\"url\":\"https://www.okx.com/learn/brc-20\",\"description\":\"Meet BRC-20 tokens, the new Bitcoin token standard\",\"timestamp\":1683919671493},{\"id\":\"5js1k7wrm07\",\"url\":\"https://www.coindesk.com/markets/2023/05/02/bitcoin-request-for-comment-tokens-surge-to-137m-in-market-value/\",\"description\":\"'Bitcoin Request for Comment' Tokens Surge to $137M\",\"timestamp\":1683920247316},{\"id\":\"doi0mczbhx5\",\"url\":\"https://cointelegraph.com/news/brc-20-tokens-surpass-1b-market-cap-as-wallet-providers-prepare-integration\",\"description\":\"BRC-20 tokens surpass $1B market cap\",\"timestamp\":1683920671309},{\"id\":\"wj2yqmqwcyj\",\"url\":\"https://twitter.com/domodata/status/1633658974686855168?s=20\",\"description\":\"Domo announced the deployment of the BRC-20 token standard\",\"timestamp\":1683921496403},{\"id\":\"3gsfpmr9wi5\",\"url\":\"https://domo-2.gitbook.io/brc-20-experiment/\",\"description\":\"BRC-20 documentation published by its creator Domo\",\"timestamp\":1683921527278},{\"id\":\"jk7avo7tutp\",\"url\":\"https://nftnow.com/features/how-ordinals-fractured-the-bitcoin-community-and-why-it-was-necessary/\",\"description\":\"NFTnow on Ordinals\",\"timestamp\":1703219110830},{\"id\":\"82xzsombamv\",\"url\":\"https://thedefiant.io/ordi-is-the-first-brc-20-token-to-top-usd1-billion-market-cap\",\"description\":\"The Defiant on ORDI $1B\",\"timestamp\":1703219151860}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmSGby2t7JnUmytEVMK5hFo6KCX99vZzDzTvC7xN9sqSnU\""},{"id":"commit-message","value":"\"Removed BRC-20 section and profile info; 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