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Exploring the Future of BRC20 Tokens Amidst the Crypto Craze 💎📈

Validated Individual Expert

With novelty, comes uncertainty and the need to prove itselfAfter $PEPE run-up to 1.5B MC, crypto latest craze is now onto a 800% pump for BRC20 tokens.To find out the underlying gems, I dived into what kind of future BRC20 can bring us🧵

1/ Bitcoin meets BRC20 - the new buzz in town! Is it a game-changer or just another hype? Let's find out!1️⃣About BRC202️⃣Benefits of BRC203️⃣BRC20 vs ERC204️⃣Problems with BRC205️⃣Alpha hunted (your 100x)6️⃣Final thoughts

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2/

1️⃣About BRC20

🔹Background

BTC maximalists are renowned for their eagerness to discover uncharted territory in crypto .The unprecedented success of the $PEPE meme coin, overflowed its effects onto BRC20, which is a standard (like ERC20) based on the ordinals protocol.

3/

🔹 About

BRC-20 is a token standard that is inspired by ERC-20 standard in Ethereum network.It's still considered experimental and aims to provide a standard for the creation of fungible tokens using a standardized token protocol.

4/ The Ordinals protocol enables users to generate Bitcoin NFTs by inscribing data on a satoshi so that these can be tracked.If you still recall, 100 million satoshis represent one Bitcoin.But how?👇

5/ BRC-20 tokens uses this process of “inscription” to add a short piece of JSON code to create tokens and track their existence.By having a ledger of every satoshi, the Ordinals protocol can help users trace exactly who owns which inscribed ones.

6/ BRC-20 tokens take innovation further by assigning information directly onto the Bitcoin blockchain in a traceable, standardized way.This creates new possibilities for asset trading and transfer on the Bitcoin blockchain.

7/ As a result, non-fungible tokens may now be generated on the Bitcoin network for the first time in the currency's history, further complicating an already complicated system.And BRC20 has a whopping market cap of $470m and has grown exponentially after $PEPE's run.

8/

2️⃣Benefits of BRC20

▫ The $BTC environment lagged in the age of jpeg apes and Defi so BRC20 aims to bring new life into its development

9/ ▫ Increase in transaction fees paid to miners ultimately incentivizes the security of the blockchain. Meaning that innovation like inscriptions increases Bitcoin's use case in the long run

10/

3️⃣BRC20 vs ERC20

BRC-20 tokens are stored on the Bitcoin blockchain and do not have smart contract capabilities, limiting their functionality compared to ERC-20 tokens.Several differences are also evident:

11/

🔹Functionality

BRC-20 tokens lack the smart contract functionality that ERC-20 tokens possess, which means they cannot interact with other protocols or applications on the Bitcoin network.

12/ As a result, BRC-20 tokens have fewer use cases and capabilities than ERC-20 tokens, which can enable users to lend, borrow, and perform other actions indirectly.

13/

🔹Storage

BRC-20 tokens use a workaround solution called ordinals and inscriptions to store data on satoshis, which is not native to the Bitcoin protocol.

14/ This makes BRC-20 tokens vulnerable to technological uncertainty since any future updates to Bitcoin could render BRC-20 tokens unusable.

15/

🔹Usability

BRC-20 tokens are still experimental and suffer from the same issues that have been troubling the Bitcoin network for years.For instance, transaction fees can be relatively high, and scalability problems exist, which is not the case for the Ethereum network.

16/ Additionally, every Bitcoin block takes approximately 10 minutes to approve, and several transfer functions can be recorded on the same block.This makes it difficult to determine validity without the order of confirmation.

17/

4️⃣Problems with BRC20

However, BRC-20 is still in its early stages and development pace is not be able to keep up with the hype.Although there aren't many technologically innovative projects on Ordinals, there are already more than 5,000 tokens based on BRC-20.

18/

5️⃣Alpha hunted (your 100x)

▫ @unisat_wallet (token confirmed)▫ @ordinalswallet (potential airdrop)▫ @hirowalletHere's how to get involved 👇

https://twitter.com/twindoges/status/1654520971208818688

19/ Plus BRC20 is becoming an industry recognized standard, even @HuobiGlobal announces their support for it. Soon @cz_binance @coinbase will follow suit.Pretty excited for the the developments around BRC20 when the real dapp and use cases come in.

https://twitter.com/HuobiGlobal/status/1652663694999027713

20/

6️⃣Final thoughts

The way I see it now is that BRC20 does not have real use case and is instead driven by the FOMO-ed memetic emotionsThey might not be here for the BRC20 tech as it still far from a matured and deployable product as compared to what we have seen with ERC20

21/ At the same time, a bear market is a good moment to catch early narratives before they run up more seriously.Those that were early. certainly made good X-es here.

Source: https://twitter.com/arndxt_xo/status/1655531751836618753

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