OpenOcean

Cryptocurrencies have become an integral part of the financial world, with several token standards being developed over the years. The most popular standard is ERC-20, which is currently the most widely used standard in the blockchain space on Ethereum and Ethereum-based chains. However, a new token standard called BRC-20 has emerged as a unique and unconventional way to mint and trade coins on the Bitcoin blockchain, a first for the crypto-giant.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/55e61a9a33b34fd19f34917e424e3b2c.png" />BRC-20 allows users to create a &#39;mint&#39; NFT with the desired amount to be minted. This is different from ERC-20 tokens, where balances are only tied to individual wallets. BRC-20 tokens have balances tied to NFTs rather than individual wallets, meaning once an NFT is minted with a certain balance of the token in question, that NFT will always represent that balance, and can only be transferred in its entirety. To create, or mint, these NFTs, each user trying to create one must get a transaction onto the blockchain via the regular gas auction to be minted onto the blockchain, this is contributing to Bitcoin’s increased traffic in recent days, making gas costs the highest they’ve been in multiple years! Once created, users can buy or sell their NFTs as they would do on other chains.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/b21eea6443f94bb5bf378cd0b1a7b4be.png" />One interesting implication of balances being tied to NFTs rather than wallets means that it’s not a trivial task to tell how many tokens an individual account owns just by looking at the blockchain. This indexing must be done off-chain by third parties. Although the process of indexing and interpreting receipt notes off-chain may seem inefficient, it is necessary for the unique functionality that BRC-20 offers.Despite being significantly different from the well-known ERC-20 token standard, BRC-20 fulfills its primary use case, which is the creation and trading of tokens, though most of these are memecoins for now. The token standard has even given rise to on-chain exchanges similar to Uniswap. The most popular exchange currently is the similarly named Unisat, although access to it requires users to have done 20 BRC-20 related transactions or hold an Unisat NFT for at least 500 confirmations, or roughly three and a half days. This process helps ensure the integrity of the market on the Bitcoin blockchain, but does restrict who can participate on-chain as opposed to CEXs, as well as drives up network congestion. The token standard&#39;s unique approach to minting and transferring tokens is something to be celebrated, and the popularity of the newly-created BRC-20 market speaks for itself.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/8791cdf03a6242f181662f9f7f88395c.png" />Despite some considering the BRC-20 standard to be strange and unintuitive, the craze for new Bitcoin altcoins has not suffered because of it. It’s also important to remember that innovation is always welcome in the blockchain space, and BRC-20 is certainly new. The success of BRC-20 serves as a reminder that different approaches to token standards can coexist and thrive in the cryptocurrency world, with BRC-20 being fresh to the blockchain it may lead to the same height of innovation that ERC-20 brought to decentralized finance.Now that you have all the information, it&#39;s time to go out and explore the world of BRC-20 tokens on the Bitcoin blockchain. However, as with any investment in altcoins, it&#39;s important to be mindful of the risks associated with the highly volatile nature of the market. BRC-20&#39;s unique approach to minting and transferring tokens is certainly worth exploring, and its success shows that different approaches to token standards can thrive in the cryptocurrency world. So, if you&#39;re looking to diversify your portfolio and take a chance on the newest player in the crypto space, remember to proceed with caution and keep an eye on the market. Happy trading! This educational article was brought to you by OpenOcean <a href="https://openocean.finance/" rel="noopener noreferrer nofollow">OpenOcean</a> is the widest reaching DEX Aggregator, a cross-chain swap aggregator, and Web 3 middleware developer in the crypto space. Offering a suite of tools across 23 networks and 285&#43; unique sources of liquidity, OpenOcean is building tools for now and for the future. Experience what it’s like to trade with ease, the way that you want to with #OpenOcean.<a href="https://openocean.finance/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/OpenOceanGlobal" rel="noopener noreferrer nofollow">Twitter</a> | <a href="https://t.me/OOFinance" rel="noopener noreferrer nofollow">Telegram</a> | <a href="https://discord.gg/cxK6CCYcGp" rel="noopener noreferrer nofollow">Discord</a>

BRC-20 Token Standard Brings Innovation to the World of Altcoins!

OpenOcean

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