Crypto glossary
BRC-20
BRC-20 is an experimental token standard on Bitcoin that uses Ordinals inscriptions of JSON text to deploy, mint and transfer fungible tokens.
BRC-20 was created in March 2023 by a pseudonymous developer known as Domo. Instead of smart contracts, it relies on small JSON text inscriptions with three operations: deploy, which sets a ticker, a maximum supply and a mint limit; mint, which claims tokens; and transfer. Off-chain indexers read every inscription in order and work out everyone's balances.
The first token, ORDI, was followed by a wave of memecoins, and the minting frenzy of 2023 filled blocks and pushed Bitcoin fees up. Several large exchanges listed BRC-20 tokens, and later designs such as Runes set out to do the same job more efficiently.
Bitcoin itself knows nothing about these balances, so users depend on indexers agreeing with each other; a bug or disagreement can change who owns what. Transfers require two transactions, liquidity is thin for most tickers and many tokens are pure speculation.
Example
To move 1,000 units of a BRC-20 token, a holder first inscribes a transfer note to their own address and then sends that inscription to the buyer.
Related terms
Latest articles on BRC-20
- Bitcoin Runes Overtakes Ordinals and BRC-20: Dominates Daily Transactions on Bitcoin Network
- BRC-20 Tokens ORDI and SATS Rebound After 40% Plunge but Traders Turn to Bitcoin Runes
- ORDI 2024-2030 Price Prediction. What’s the forecast for the BRC-20 Token?
- Layer 1 Foundation Overhauls BRC-20 Governance with New Structure and Collaborators
- Binance Bets on BRC-20 Futures: ORDI Perpetual Contract Launching Soon
