The BRC-20 standard has opened the door for countless investors to engage with the Bitcoin ecosystem in new and exciting ways. But what exactly is BRC-20? How does it work under the hood, and what makes it different from other token standards like ERC-20? Beyond the viral meme tokens that have surged hundreds or even thousands of times in value, are there sustainable opportunities within this space?
Recently, headlines announced that the BRC-20 token ORDI surpassed $10 in price, with its market cap exceeding $200 million. Originally launched on March 9, 2023, ORDI was initially free to mint—users only needed to pay nominal Bitcoin network gas fees to claim large quantities.
Imagine a user who minted 1,000 ORDI tokens at launch. Today, that holding could be worth nearly $10,000. Compared to complex airdrop farming strategies requiring precise on-chain activity and eligibility tracking, BRC-20 minting offers a simpler path to early gains. With minimal technical barriers and low initial costs—sometimes just a few dollars in gas fees—participants can jump in during the earliest stages of a token’s lifecycle.
As these success stories spread, BRC-20 has evolved into a compelling narrative within the crypto market, attracting both retail users and institutional interest.
Notable figures and platforms have begun embracing the trend. On May 5, crypto influencer Plan B tweeted a poll about BRC-20 tokens. Wang Feng, founder of NFT marketplace Element, announced plans to support BRC-20 tokens and Bitcoin Ordinals. Huobi (now HTX) revealed that ORDI won first place in its latest voting campaign for new listings, with PEPE securing second. OKX also confirmed they are actively analyzing BRC-20 and working toward wallet integration for ORDI trading.
Clearly, BRC-20 is no longer a niche experiment—it's becoming a strategic frontier for users, developers, and centralized exchanges alike.
Understanding BRC-20: A New Token Standard on Bitcoin
BRC-20 is an experimental token standard for issuing fungible tokens on the Bitcoin blockchain. Proposed by Twitter user @domodata on March 8, 2023, it leverages the Ordinal protocol to embed token data directly into Bitcoin’s smallest units—satoshis (sats).
Unlike Ethereum’s ERC-20, which relies on smart contracts, Bitcoin does not natively support programmable logic. Instead, BRC-20 uses JSON-formatted inscriptions written onto individual sats via the Ordinal protocol. These inscriptions act as the foundation for deploying, minting, and transferring tokens—all without traditional contract execution.
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What Are Bitcoin Ordinals?
Ordinal Theory assigns a unique serial number to each satoshi in the order they are mined. Since 1 BTC equals 100 million sats, this system enables granular tracking of individual units across the network.
Once numbered, users can "inscribe" digital content—such as images, text, or code—onto specific sats. This process creates one-of-a-kind digital artifacts known as Bitcoin NFTs, or inscriptions. The data attached becomes permanently stored on-chain.
BRC-20 takes this concept further by standardizing inscriptions using predefined JSON structures. Instead of arbitrary files, these inscriptions follow strict rules for token deployment (deploy), minting (mint), and transfer (transfer) operations.
In essence, BRC-20 tokens are a specialized form of Ordinal inscription where metadata defines fungible assets rather than unique collectibles.
Core Mechanics of BRC-20
BRC-20 operates through three primary functions:
- Deploy: Initializes a new token with parameters like ticker symbol (4 characters max), total supply, and per-mint limit.
- Mint: Allows users to claim tokens by inscribing a mint request on a satoshi. Each mint consumes gas and increases circulation.
- Transfer: Enables movement of tokens between addresses via signed inscription messages.
All actions are recorded as on-chain inscriptions, making transactions fully transparent and verifiable.
Important: Token names are case-insensitive and follow a "first-come, first-served" rule. Once “ORDI” is deployed, no other project can use that ticker.
How to Create and Mint a BRC-20 Token
Anyone can issue a BRC-20 token using compatible tools. Here's a step-by-step guide:
Install a compatible wallet like Unisat Wallet.
- During setup, ensure derivation path is set to
m/86'/0'/0'/0/0to support Ordinals and BRC-20 assets.
- During setup, ensure derivation path is set to
- Fund your wallet with BTC sent to a
bc1paddress. - Navigate to the Inscribe feature and select BRC-20.
Choose Deploy to launch your token:
- Enter a 4-letter ticker (e.g., “PEPE”)
- Define total supply and per-mint cap
- Submit and pay network gas fees.
After deployment, others can begin minting according to your defined rules.
To mint existing tokens:
- Select Mint
- Input the token ticker
- Choose quantity (subject to per-mint limits)
- Pay gas fee
Keep in mind: During network congestion, higher gas fees increase confirmation speed. Use real-time fee estimators like mempool.space to optimize costs.
Buying and Trading BRC-20 Tokens
There are two main scenarios for acquiring BRC-20 tokens:
1. Minting Pre-Launch Tokens
If the token hasn’t reached max supply, users can mint directly by paying gas. This is often the most cost-effective method—but timing matters. Early mints typically yield better value.
2. Secondary Market Purchases
Once minting ends, trading moves off-chain or to peer-to-peer markets.
Popular platforms include:
- Unisat Marketplace: Functions like an NFT marketplace where sellers list entire batches of tokens. Buyers must purchase full listings—partial trades aren’t supported.
- OTC Deals: Direct transfers with third-party escrow services. Riskier due to scams involving fake tokens or non-delivery.
Access to Unisat’s marketplace requires either OG status or 20 Unisat points, earned by minting 20 inscriptions (~$160 in current gas costs). This creates a financial barrier to entry, limiting broader participation.
Market data—such as deployment time, mint progress, holder count, and transaction volume—is publicly viewable on platforms like Unisat and Ordiscan.
Notable BRC-20 Tokens
While thousands of BRC-20 tokens exist, only a few have gained significant traction:
- ORDI: The original BRC-20 token; 21M supply; ~$10 price; ~5,261 holders
- NALS: Named as a nod to “Ordinals”; 21M supply; ~$0.90
- PIZA: Meme-inspired; 21M supply; ~$0.43
- MEME: Limited supply (99,999); high value (~$91)
- PEPE: Inspired by ERC-20 meme coin; 42M supply; ~$0.68
Despite their popularity, many top tokens lack utility beyond speculation. Most are meme-driven with no roadmap or ecosystem backing.
Key Tools and Platforms
Several tools support interaction with BRC-20 tokens:
- Unisat Wallet & Marketplace: All-in-one solution for storage, minting, and trading
- Idclub / Looksordina: Alternative minting platforms with varying fee structures
- BRC-20.io: Real-time price and market cap tracker
- Ordiscan: Blockchain explorer for viewing inscriptions and transactions
- Ordspace: Analytics dashboard for BRC-20 metrics and collections
As of May 6, over 12,861 BRC-20 tokens have been created, with total market cap reaching $280 million and daily trading volume around $4.27 million.
Risks and Criticisms
Despite enthusiasm, BRC-20 faces criticism:
- Low Utility: Most tokens lack real-world use cases.
- Poor Liquidity: Thin markets make buying/selling difficult.
- Network Congestion: High transaction volumes increase fees and slow confirmations.
- Speculative Nature: Prices often driven by hype rather than fundamentals.
Bitcoin purists argue that BRC-20 bloats the blockchain with non-financial data. However, proponents believe it revitalizes Bitcoin by attracting developers and increasing BTC demand—since every inscription requires BTC for gas.
Miners benefit significantly: Bitcoin transaction fees spiked from $499M in February to $689M in March 2023, contributing to over $718 million in miner revenue—the highest since May 2022.
Emerging Alternatives: ORC-20 and LTC-20
Newer standards aim to improve upon BRC-20:
- ORC-20: Upgrades include variable ticker lengths, adjustable supplies, transaction cancellation, and mandatory royalties (similar to NFTs).
- LTC-20: A Litecoin-based version using Litecoin Ordinals.
However, neither has achieved widespread adoption compared to BRC-20.
Frequently Asked Questions (FAQ)
Q: Is BRC-20 officially supported by Bitcoin?
A: No. BRC-20 is a community-driven experiment built atop Ordinals. It’s not part of Bitcoin’s core protocol.
Q: Can I create any token name I want?
A: Only if it’s four characters or fewer and not already taken. Names are case-insensitive and first-come-first-served.
Q: Are BRC-20 tokens secure?
A: Transactions are secured by Bitcoin’s network, but smart contract protections (like those in ERC-20) don’t exist. Always verify token legitimacy before minting.
Q: Do I need special software to interact with BRC-20?
A: Yes. Standard Bitcoin wallets won’t recognize inscriptions. Use Ordinal-aware wallets like Unisat or Xverse.
Q: Can I lose money investing in BRC-20 tokens?
A: Absolutely. Most are highly speculative with no intrinsic value. Only invest what you can afford to lose.
Q: Will exchanges list more BRC-20 tokens?
A: Likely. With growing interest from OKX, Huobi, and others, major listings could boost liquidity and legitimacy.
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Final Thoughts
BRC-20 represents a bold evolution of Bitcoin’s capabilities—transforming it from pure digital gold into a platform for tokenized innovation. While risks remain high and utility limited today, the standard has undeniably sparked renewed interest in Bitcoin’s potential.
For early adopters willing to navigate technical hurdles and market volatility, BRC-20 offers rare opportunities for asymmetric returns. Yet long-term sustainability will depend on moving beyond memes toward real applications.
As development continues and infrastructure matures, the line between Bitcoin as currency and Bitcoin as platform may finally begin to blur.
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