BRC-20 Tokens: A Step Back and Forward
As the first cryptocurrency running on the primordial blockchain, Bitcoin is both the beacon of hope for the entire crypto world and the last in line regarding any technological innovation. It’s the slowest blockchain that does only one thing: transferring BTCs. In comparison, Ethereum is now a decentralized computing platform running millions of smart contracts and will soon be welcoming a sharding upgrade that drastically reduces transaction costs and increases its throughput.
But it turns out Bitcoin still has some tricks up its sleeve. In January 2023, Bitcoin launched its Ordinals protocol, making it possible to attach extra data to each satoshi on the Bitcoin blockchain. This marks Bitcoin’s major leap towards a more innovative and diversified ecosystem, introducing fungible and non-fungible tokens to the first-ever blockchain. Bitget is one of the first exchanges to list these tokens and added a dedicated BRC-20 zone.
BRC-20 vs ERC-20: a comparison
Though both referred to as tokens, BRC-20 tokens and ERC-20 tokens are fundamentally different in many aspects.
For one, BRC-20 tokens are much more decentralized and immutable than their counterparts. This is because these tokens are attached and inscribed on immutable blocks. ERC-20 tokens, on the other hand, are only theoretically decentralized. They may be running on a decentralized blockchain but are ultimately controlled by smart contracts written and modifiable by centralized teams, who hold the power to replace or dilute their existing in a few lines of code.
That said, BRC-20 tokens are limited by the very blockchain they reside on. Bitcoin was never designed as a platform for smart contracts, and its throughput is eye-wateringly low compared to Ethereum, not to mention the exceptionally high gas fees. For now, these tokens can only store some value their investors deem worthy and hold no governance or other utility value. You can trade these tokens on major DEXs or CEXs like Bitget.
A step back or forward?
BRC-20 tokens have once again taken the spotlight, but many are criticizing their lack of inherent value. Some even think this is a major step back to several years ago when ICO was taking over everyone's frontpage.
However, the BRC-20 ecosystem is favored by many blockchain fundamentalists for a reason. They stripped tokens and blockchains of their flair and returned to the foundation of this revolutionizing technology: decentralized, immutable, and permissionless ledger. Once a token is released on blockchain, it shouldn’t be affected by any party, not even its founders. Ethereum has drawn inspiration from this and introduced its own inscriptions.
Although many BRC-20 tokens never got to see the daylight, there are few that stayed:
ORDI, the very first BRC-20 token released via the ordinals protocol that saw the ups and downs over the better part of 2023;
RATS, a newcomer that took quite some spotlight from its big brothers;
and SATS, the most memeable memecoin on the Bitcoin blockchain and a return to the original blockchain.
You can trade all these hottest BRC-20 tokens at Bitget’s BRC-20 and Bitcoin ecosystem zone.
What’s next?
Through all the hypes and busts, one thing is certain: BRC-20 tokens are here to stay. And as Ordinals introduced NFTs to the Bitcoin ecosystem, this time-honored blockchain will set to shock and revolutionize the entire world with these innovations. The crypto world may once again proliferate, and more people will stand to benefit from it. Register now on Bitget and embark on your journey into the crypto world!
Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
