What are BRC-20 tokens? Everything you need to know

What are BRC-20 tokens? Everything you need to know
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What are BRC-20 tokens?

BRC-20 tokens are a new type of token that is built on the Bitcoin blockchain. They are similar to ERC-20 tokens, which are tokens that are built on the Ethereum blockchain. However, there are some key differences between BRC-20 tokens and ERC-20 tokens.

How are BRC-20 tokens created?

BRC-20 tokens are created using the Ordinals protocol. The Ordinals protocol is a system that allows users to attach data to satoshis, which are the smallest units of Bitcoin. When a BRC-20 token is created, the data that is attached to the satoshi is the token's metadata. The metadata can include information such as the token's name, symbol, and total supply.

How do BRC-20 tokens work?

BRC-20 tokens work in a similar way to ERC-20 tokens. They can be transferred between wallets, used to pay for goods and services, and staked to earn rewards. However, there are some limitations to BRC-20 tokens. For example, they cannot be used to interact with smart contracts, which are programs that run on the blockchain.

What are the differences between BRC-20 and ERC-20 tokens?

The main difference between BRC-20 tokens and ERC-20 tokens is that BRC-20 tokens are on the Bitcoin blockchain, while ERC-20 tokens are on the Ethereum blockchain. This means that BRC-20 tokens are more compatible with Bitcoin wallets and services. However, ERC-20 tokens have a wider range of functionality, as they can be used to interact with smart contracts.

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What are the risks of using BRC-20 tokens?

BRC-20 tokens are still a new technology, so there are some risks associated with using them. For example, the BRC-20 token standard is not as mature as the ERC-20 token standard. This means that there is a greater risk of bugs and security vulnerabilities in BRC-20 tokens.

What is the future of BRC-20 tokens?

The future of BRC-20 tokens is uncertain. Some people believe that BRC-20 tokens could become a popular way to issue tokens on the Bitcoin blockchain. Others believe that BRC-20 tokens will eventually be replaced by a more mature token standard.


BRC-20 tokens are a new and experimental type of token that has the potential to be used in a variety of ways. However, there are some risks associated with using them, and it is important to do your research before investing in BRC-20 tokens.

If you would like to know more about BRC-20, listen to the Crypto Unplugged podcast episode: "#42: "Unleashing the Power of BRC-20: Insights and Innovations"

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