Thread by @0xDipo

…couldn’t even get to sleep properly from the noise on #CT, everywhere I turn to and it’s only one name being mentioned…BRC-20/ORDINALS

So what is it and why have they garnered so much momentum?

Read along anons…

What’s BRC-20? It’s an acronym for Bitcoin Request for comment 20, a proposed standard for creating fungible tokens on the Bitcoin blockchain.

It was created by an anonymous developer named Domo (who knows maybe it’s Satoshi) in March 2023.

BRC-20 tokens are similar to ERC-20 tokens on the ETH blockchain.

But unlike ETH that uses smart contract, BRC-20 uses a system of ordinal inscriptions to store data about the tokens.

Ordinal inscriptions are a type of bitcoin script used in storing arbitrary data on the blockchain network.

BRC-20 can be used to represent a variety of assets class including but not limited to, digital currencies, securities and physical goods.

They can also be used to create NFTs.

NFTs are a type of token that’s unique and can’t be replaced by another token.

They’re often used to represent digital arts, collectibles and other unique items.

BRC-20 are still in the infancy stage of development, but I believe they have the capability to revolutionize the way tokens are created and used on the bitcoin network.

They could make it easier for developers to create new new dApps and for users to store and manage their digital collectibles or assets.

▪️PROS OF BRC-20 TOKENS

▪️They’re compatible with the bitcoin blockchain, which is the most secure and decentralized blockchain.

They’re easy to create and use, even for developers with limited experience.

They can be used to represent a variety of different assets, including securities, digital currencies and physical goods

▪️ CONS OF BRC-20 TOKENS

They’re still in early stage of development and they’re associated with some risks.

BRC-20 tokens don’t use smart contracts and this limits their functionality.

They’re not as widely supported as ERC-20 tokens, so they may not be accepted by all exchanges and wallets( I’ll mention a wallet on this thread later on).

Overall, BRC-20 tokens are a promising new technology that has the potential to disrupt the way tokens are created

…and used on the bitcoin blockchain.

Note that they are still in development stage and certainly risks would be associated with it.

▪️ORDINALS.

Ordinals are a type of NFTs that’s created by assigning a unique serial number to each satoshi

What’s a satoshi? A satoshi is the smallest units of bitcoin.

It’s equal to 0.00000001 BTC. Satoshis are named after Satoshi Nakamoto, the creator of bitcoin.

Ordinals are created using the taproot upgrade, which was activated on the bitcoin network on November 14, 2021.

Taproot allows for more complex transactions to be made on the bitcoin blockchain including the creation of ordinals.

Ordinals are stored on the bitcoin blockchain, which is a public ledger that records all bitcoin transactions.

The serial number of each ordinal is stored on the blockchain, along with the rest of the transaction data.

Read this thread from @BitGod21

https://twitter.com/bitgod21/status/1656624375108337667

▪️Benefits of using ordinals on Bitcoin blockchain.

Decentralization: Ordinals are native to the Bitcoin network, which happens to be a decentralized network.

This means that ordinals aren’t subject to the control of any central authority.

Security: Ordinals are stored on the bitcoin blockchain, which is a secure and decentralized ledger.

This means that ordinals aren’t subject to the same risks as NFTs that are created on other blockchain 😁.

Interoperability: Ordinals are compatible with the Bitcoin network, which means that they can be used with a variety of Bitcoin wallets and services.

This makes it easy to use and trade ordinals.

Scalability: The Bitcoin blockchain is a scalable network, which means that it can handle a large number of transactions.

This makes it possible to create and trade a large number of ordinals without affecting the performance of the network.

Uniqueness: Each ordinal is assigned a unique serial number, which makes them unique and cannot be replaced by another ordinal.

▪️Risks associated with Ordinals

Ordinals are created using complex technologies. This means that not everyone will be able to create

Or use Ordinals but I’m confident that in no time, the team involved would provide video tutorials on that.

Security Risks: The Bitcoin blockchain is a secure network but it’s not immune to hack.

There’s a risk ordinals could be stolen if there’s ever a hack on the network.

▪️My thoughts on BRC-20 and Ordinals.

BRC-20 and Ordinals could open up new possibilities for the use of NFTs (digital arts, collectibles…)

They could help to make the Bitcoin network more accessible to wider range of users.

More people on the network crates more volume.

They could help to grow the bitcoin ecosystem.

Developers could use them to create new applications and services that are built on top of the bitcoin network.

It’s really early to predict what the future holds for BRC-20 and Ordinals but we can’t ignore their potential.

Here are some projects that are currently building on the BRC-20 and Ordinals.

Ordinal Wallet: This is a bitcoin-native, non custodial wallets that supports Brc-20 tokens @ordinalswallet

@BtcNameOrdinals (Btc name inscribed onto the bitcoin blockchain).

There are other projects as well but I’ll talk about them later.

I encourage everyone to learn more about brc-20 and ordinals. Share your thoughts with me and others in the comment below 👇.

Together, we can help shape the future of brc-20 and ordinals.