Since the birth of Bitcoin in 2009, it has changed our understanding of digital currency and led the concept of decentralized digital currency. Subsequently, Ethereum innovated on top of Bitcoin, creating a new platform that successfully developed decentralized applications andsmart contract. This groundbreaking innovation in Ethereum led to the introduction of ERC-20 tokens in 2015, allowing the Ethereum blockchain to host thousands of other cryptocurrencies in addition to ETH.
Entering 2023, Bitcoin launched the Ordinals protocol, making it possible to append additional data to each satoshi on the Bitcoin blockchain. This marks a major leap forward for Bitcoin in terms of innovation and diverse ecosystem, introducing both fungible and non-fungible tokens to the Bitcoin blockchain.
What is the BRC-20 token?
BRC-20 Created in March 2023, Token Standard utilizes the Ordinal protocol to “imprint” tokens on the Bitcoin blockchain and allow everyone to mint and transfer these tokens. This novel approach has injected new vitality into the long-dormant Bitcoin blockchain. The popularity of the BRC-20 token is rapidly increasing, driving a significant increase in transaction volume and handling fees on the Bitcoin blockchain. In just one month after launch, tokens such as Ordinals (ORDI), Pepe (PEPE), and MEME (MEME) began to rise to prominence.
Bitget quickly lays out the BRC 20 ecosystem
Facing the emerging gameplay of Bitcoin ecology,BitgetIt is one of the earliest platforms in CEX to test the waters in this field. Perhaps it is support for the Bitcoin ecosystem, or perhaps it is extremely sensitive to market hot spots. As early as April this year, Bitget began to lay out the BRC-20 track, and has launched a number of early popular BRC 20 ecological projects. , such as PEPE, ORDI, BIP1, etc.
Since November, with the recovery of the encryption market, Bitcoin ecological tokens have begun to strengthen collectively. Taking the BRC 20 token as an example, the average gain in November was over 300%. Among them, RATS, PEPE and ORDI, which performed most brilliantly, rose by 774%, 486% and 447% respectively throughout November. Bitget, which launched multiple BRC-20 tokens in April, has also caught on to this trend.
The future of BRC-20 tokens
Currently, BRC-20 tokens suffer from some key limitations, such as incompatibility with EVM (EthereumVirtual machine), its development is limited, or it is difficult to rise as quickly as the Ethereum ecological token. However, it is worth noting that the BRC-20 token and the Bitcoin ecosystem are still being continuously improved and developed. I believe that with the further improvement of the infrastructure, the development potential is huge.
Overall, while the future of the BRC-20 token is full of uncertainty, its impact in the cryptocurrency space cannot be ignored. When investors consider getting involved in this area, they should fully understand and evaluate its potential risks and benefits to ensure that they make informed investment decisions.