What are Bitcoin BRC Tokens?
- This short article is a look at Bitcoin BRC-20 tokens, and a brief explanation of what they are and what they can be used for in the future.
"A BRC-20 is an experimental token standard on the Bitcoin
(BTC) blockchain, It is modeled on Ethereum’s ERC-20."
source
- So a Bitcoin BRC-20 is a NFT on the Bitcoin blockchain. It is like an ERC-20 is a NFT on the Ethereum blockchain.
- ERC-20 are also an art forms which most people think of when they say the word NFT.
- ERC-20 are a special type of NFT which represents the value of a token from another blockchain, on the ethereum blockchain.
- So NFTs are also an integral part of decentralized finance.
- For example wrapped Bitcoin, sometimes referred to as WBTC is a NFT on the Ethereum blockchain, wich represents the value of one Bitcoin token on the Ethereum blockchain.
- Other tokens you may be familiar with which are or were NFT tokens on Ethereum include BAT, LINK, THOR and our very own WLEO.
What are they used for?
"A BRC-20 allows programmers to create and send fungible tokens via the Ordinals protocol."
source
- The ordinals protocol allows programers to mint JPEGS on Bitcoin and create a niche for art form NFTs on Bitcoin, similar to NFTs like Bored Apes on Ethereum.
- In theory these NFTs could also represent the value of another token on the Bitcoin blockchain.
- For example, if someone developed a EVM type software structure for the Bitcoin blockchain it would be the first step towards creating decentralized finance on the Bitcoin blockchain.
_ Then someone could technically clone important projects like the MakerDao or Uniswap on the Ethereum blockchain and run those projects under the same or different name on the Bitcoin blockchain like BitcoinDao and Bitcoinswap. - Examples of this are how Binance cloned Ethereums EVM and created a situation where they could clone projects on Ethereum like MakerDao and Uniswap onto Binance Smart Chain, and those projects became known as Venus.io and Pancakeswap.
source is blockchain history
Should you invest in them?
- Only you can decide what to gamble your hard earned cash on.
- People who are first, can reap great rewards, but also can take the stones and arrows.
- I hoped you enjoyed this brief peak into the evolution of cryptocurrency occurring before our eyes or under our noses LOL!
Further Reading
- Cointelegraph : https://cointelegraph.com/news/bitcoin-brc-20-token-standard-becomes-a-new-destination-for-meme-tokens
- Cointelegraph : https://cointelegraph.com/news/2-reasons-why-bitcoin-ordinals-are-positive-for-the-btc-grayscale
About @shortsegments
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance for over four years.
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