What's BRC-20, a video that teaches you to play with the Bitcoin motto

What's BRC-20, a video that teaches you to play with the Bitcoin motto

In this article, we will explore the emerging cryptocurrency standard of BRC-20 together and introduce how to issue and trade BRC-20 tokens through Bitcoin Ordinals. This is not only a new breakthrough on the Bitcoin network, but also opens up more opportunities for innovation in the cryptocurrency space. If you are interested in Bitcoin and cryptocurrencies, or want to learn how to get started with the BRC-20 standard, this article will provide you with a comprehensive guide from the basic concepts to the actual operation, so that you can quickly get up to speed and start playing with Bitcoin Ordinals.

What is BRC-20?

BRC-20 is a token standard based on the Bitcoin network that is backed by Bitcoin's "Ordinals" technology. Unlike ERC-20 tokens on Ether, BRC-20 is created and issued on the Bitcoin blockchain, and as such is characterized by taking advantage of Bitcoin's security and decentralization features. The emergence of such a standard allows Bitcoin to be used not only for digital currency transactions, but also for issuing customized tokens, providing more innovation and investment opportunities for developers and users.

Why is BRC-20 so important?

The introduction of the BRC-20 standard marks a major breakthrough in the functionality of the Bitcoin network. For a long time, Bitcoin has been considered a digital currency, mainly used for value storage and transactions. With the introduction of BRC-20, Bitcoin will be able to support token creation and applications just like Ether, allowing developers to innovate on the Bitcoin blockchain. This not only expands the use case for Bitcoin, but also brings more developers and innovators into the Bitcoin ecosystem.

How the BRC-20 works

BRC-20 is based on Bitcoin's mnemonic technology to enable the creation and management of tokens. Simply put, Ordinals is a technology that embeds data into Bitcoin transactions, which can be text, images, or even the code of a smart contract. With this technology, developers can create their own tokens by embedding customized information, such as tokens, directly into the Bitcoin blockchain. These tokens are decentralized and each token has its own unique identifier.

How to create a BRC-20 token?

Creating BRC-20 tokens does not require an advanced technical background, and the main steps include:

1. Installation of necessary tools: First of all, you need to install Bitcoin node and tools that support BRC-20. The most common tools include Ordinals Wallet and Ordinals Explorer.
2. Creation Token Specifications: Using the BRC-20 standard, you can define basic specifications such as the name of the token, the total amount, and the method of issuance. This information will be recorded on the Bitcoin blockchain.
3. Issuance of tokens: Once the specification is set, you can issue tokens via Bitcoin trading. At this point, your tokens appear on the blockchain and can be traded or transferred.

Advantages and disadvantages of BRC-20 tokens

As an emerging standard, BRC-20 tokens have some significant advantages, but they also have their challenges.
Advantages:

• decentralization: The BRC-20 token relies entirely on the Bitcoin blockchain and does not require a centralized authority.
• High security: The Bitcoin blockchain itself has strong security and attack resistance, which makes the BRC-20 tokens secure.
• Simple and easy to useBitcoin has a lower threshold for use than other blockchain platforms, and many users are already familiar with Bitcoin's wallet and transaction process.

Disadvantages:

• Relatively limited functionality: The current BRC-20 is simpler than Ether's ERC-20 and lacks complex features such as smart contracts.
• High volatility in transaction fees: Transaction fees for BRC-20 tokens may be higher and more volatile due to congestion on the Bitcoin network.

How to trade BRC-20 tokens?

Trading BRC-20 tokens is similar to the traditional Bitcoin trading process. You need a wallet that supports BRC-20 tokens and make sure you have enough Bitcoins to cover the transaction fee. From your wallet, you can send BRC-20 tokens to other users or buy and sell them on an exchange.
Currently, some cryptocurrency exchanges and platforms have begun to support trading of BRC-20 tokens, including some decentralized exchanges (DEX). However, as BRC-20 is still in the early stages of development, related support and liquidity may be limited.

Playing with the Future Potential of the BRC-20

Although the development of BRC-20 is still in its early stages, it demonstrates the diversified potential of Bitcoin as a cryptocurrency. In the future, as more developers come on board, BRC-20 may introduce more features and application scenarios, such as smart contracts, decentralized finance (DeFi) applications, etc., thus further enhancing its value and impact.
The innovation of BRC-20 has also opened our eyes to more possibilities of Bitcoin as a digital asset, especially its application and expansion in the blockchain ecosystem.

Frequently Asked Questions Q&A

Q1: What is the difference between BRC-20 tokens and ERC-20 tokens?
A1: The main difference is in the underlying blockchain; ERC-20 is based on Ether, while BRC-20 runs on the Bitcoin blockchain; BRC-20 is simpler and is mainly used for issuing and trading tokens, while ERC-20 can support more complex application scenarios such as smart contracts.

Q2: How to choose a wallet that supports BRC-20?
A2: There are relatively few wallets that support BRC-20, but you can choose from a number of wallets designed specifically for the Bitcoin motto, such as the Ordinals Wallet, which allow you to create, store and trade BRC-20 tokens.

Q3: How much Bitcoin is needed to issue BRC-20 tokens as a handling fee?
A3: The fee for issuing BRC-20 tokens usually depends on the congestion on the Bitcoin network. Typically, the fee is slightly higher than a regular Bitcoin transaction, and can range from a few dollars to over a dozen dollars.

Through this article, I hope you have gained a clearer understanding of how BRC-20 tokens work and what they are worth. Whether you are an investor or a developer, BRC-20 offers you a brand new opportunity to explore the potential of Bitcoin.