Thread by @great_ben_

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🌠What are #BRC20 Tokens?

#BRC20 stands for "Bitcoin Request for Comment" and is an experimental token standard.

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Using Ordinals, developers inscribe text directly onto the #Bitcoin Blockchain.
This text is being used to represent fungible tokens that are interchangeable on a 1:1 basis.

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🌠Why are they interesting?

❕Increased interest in building on Bitcoin.

❕Rely on Bitcoin's proof-of-work consensus for security.

❕Wallets like UniSat Wallet support BRC-20 tokens.

The Total market cap for BRC-20 tokens is around $17.5 million.

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🌠But there are downsides...

❕Limited functionality compared to #ERC20 tokens.

❕No support for smart contracts or DeFi applications.

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❕Most BRC-20 tokens issued are "meme-coins" with little utility.

❕Risk of high price volatility and potential lack of long-term value.

❕Primitive tooling, as showcased by the recent Unisat exploit.

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🌠What to take away?

#BRC20
tokens showcase the ongoing experimentation on Bitcoin and represent a renewed interest in building upon the platform.

These tokens are a crucial experiment, sparking curiosity and driving innovation within the Bitcoin ecosystem.

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However, without smart contracts or DeFi capabilities, there are no good use cases. 

While we may not endorse this method for deploying tokens on Bitcoin, we value efforts to improve #Bitcoin ecosystem.

Tell me your opinions about #BRC20 in the comment section.
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