What are BRC 20 Tokens and How Are They Different from ERC 20 Tokens??

Sonic Team

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Date of publishing : May 22, 2023 , 10:00 AM

BRC 20 tokens are an innovative version of a token that operates on the Bitcoin network. They are comparable to Ethereum's ERC 20 tokens, however, there are several significant distinctions.

BRC 20 tokens are generated and transmitted via the Ordinals protocol, which is a form of Bitcoin script. Ordinal inscriptions are a sort of Bitcoin script that may hold any data. This implies that BRC 20 tokens may be used to symbolize a broad range of assets, which includes but is not restricted to:

• Memecoins
• Gaming tokens
• Utility tokens
• Real-world assets

How Do BRC 20 Tokens Work?

BRC 20 tokens are created and transferred using the Ordinals protocol. The Ordinals protocol is a type of Bitcoin script that can be used to store arbitrary data. This means that BRC 20 tokens can be used to represent a wide variety of assets.

To create a BRC 20 token, you will need to create an Ordinal inscription. An Ordinal inscription is a type of Bitcoin script that contains the following information:

• The name of the token
• The total supply of the token
• The decimal places of the token
• The token's contract address

Once you have created an Ordinal inscription, you can then mint BRC 20 tokens. To mint BRC 20 tokens, you will need to send Bitcoin to the contract address specified in the Ordinal inscription.

How Are BRC 20 Tokens Different from ERC 20 Tokens?

While BRC 20 tokens and ERC 20 tokens on Ethereum are similar, there are several key differences between them.

BRC 20 coins vary from ERC 20 tokens in that they do not employ smart contracts. Smart contracts are a sort of programming that may be utilized for carrying out complicated transactions. Because smart contracts are not supported by the Bitcoin network, BRC 20 tokens do not use them.

Another difference between BRC 20 tokens and ERC 20 tokens is that BRC 20 tokens are created and transferred using the Ordinals protocol. The Ordinals protocol is a type of Bitcoin script that can be used to store arbitrary data. This means that BRC 20 tokens can be used to represent a wider variety of assets than ERC 20 tokens.

Conclusion

BRC 20 tokens are a new form of token that operates on the Bitcoin network. They are comparable to ERC 20 tokens on Ethereum, however, there are several major classifications. BRC 20 tokens are produced and transmitted using the Ordinals protocol, which is a form of Bitcoin script that can be used to hold arbitrary data. As a result, a range of assets may be represented with BRC 20 tokens.

Although BRC 20 tokens are still in the initial stages of development, by making it simpler to design and operate decentralized apps, they have the potential to completely transform the Bitcoin ecosystem.