What does the BRC20 address mean? What chain is BRC20?

BRC20 is a homogeneous token created by developers who mark specific information on Bitcoin (inscription) in batches through the Ordinal protocol. To put it simply, Bitcoins that are written with a specific mark enjoy the security of the Bitcoin blockchain, but do not yet support smart contracts. Although it is to support smart contracts, some investors have heard of the brc20 address. So what does this brc20 address mean? This address is actually the receiving address for users to cast inscriptions. Next, the editor will explain it in detail to help you understand the new concept of BRC20 in one article.

What does the BRC20 address mean?

The BRC20 address represents the address used to receive the casting inscription. BRC20 is an experimental standard for the issuance and transfer of fungible tokens on the Bitcoin blockchain, using Ordinal protocol technology. The standard creates and manages tokens by appending a JSON-formatted inscription to each Satoshi, the smallest unit of Bitcoin.

Ordinal protocol is the basis of BRC20. The Ordinal Protocol is a technology that leverages Bitcoin’s Segregated Witness (SegWit) to assign a unique identity to each satoshi, thereby giving the satoshi uniqueness and traceability. The core of the Ordinal protocol is a data format called OrdinalJSON, which is a method of embedding JSON data in Bitcoin transactions and can be used to store arbitrary information, such as the name, quantity, transfer, etc. of the token.

When a user wants to deploy a BRC20 token, he needs to send a transaction, which contains an OrdinalJSON inscription to deploy the token, specifying the name of the token, issuance amount, limit and other information. This transaction will be confirmed by the Bitcoin network, but the Bitcoin node will not process this inscription, it will just exist on the blockchain as an ordinary transaction. In order to identify and track this inscription, you need some specialized tools, such as Unisat wallet or Ordinals browser, which can parse the OrdinalJSON data in the transaction and store it in their own database, thus forming a registry of BRC20 tokens .

When a user wants to mint or transfer a BRC20 token, he also needs to send a transaction containing an OrdinalJSON inscription of the minted or transferred token, specifying the name, quantity, and recipient of the token. and other information. This transaction will also be confirmed by the Bitcoin network, but the Bitcoin nodes will not process this inscription, it will just exist on the blockchain as an ordinary transaction. In order to identify and track this inscription, you need some specialized tools, such as Unisat wallet or Ordinals browser, which can parse the OrdinalJSON data in the transaction and update the balance of BRC20 tokens in their own database according to the rules of minting or transfer. .

What chain is BRC20?

The BRC20 token protocol is a homogeneous token standard built on the Bitcoin native chain, similar to the ERC-20 standard on Ethereum. BRC stands for Bitcoin, while ERC stands for Ethereum. BRC20 tokens can be issued and traded on the Bitcoin network, adding more functions and applications to the Bitcoin ecosystem. Such a token standard makes it easier to create tokens on the Bitcoin blockchain, and also promotes the development and operation of more projects and applications on the Bitcoin network.

BRC20 is an experimental token standard based on the Bitcoin blockchain, using the 0rdinal protocol to issue and transmit interchangeable tokens. Anonymous on-chain analyst Domo is the founder of BRC20, which works to enable the issuance and transfer of fungible tokens on the Bitcoin blockchain.

BRC20 currently has three ways to participate: casting inscriptions, buying coins in the secondary market, and buying coins on the exchange. BRC20 can issue MEME coins, but it still injects new vitality into the Bitcoin ecosystem. At the same time, in BRC20 The increase in transaction fees paid to miners during transactions will ultimately incentivize the security of the blockchain and potentially lead to a cultural shift within the Bitcoin community.

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