Thread by @trustmachinesco

BRC-20 has a lot going for it, but let’s be honest: scalability isn’t one of them 🚧

ORC-20, a new token standard, is looking to change that 🧵

Here’s a problem:

Every time you want to send BRC-20 tokens, you need to inscribe a Transfer, usually on a third-party service, then send that Transfer to your intended recipient.

That’s two transactions and double the fees! 💸💸

ORC-20 promises a more efficient solution…

ORC-20 is an open standard created by @OrcDAO and launched just last month.

If you’re familiar with the structure of BRC-20, then ORC-20 will look pretty similar.

With ORC-20, you have 4 possible operations: Deploy, Mint, Send, and Cancel.

ORC-20 is an open standard created by @OrcDAO and launched just last month.

If you’re familiar with the structure of BRC-20, then ORC-20 will look pretty similar.

With ORC-20, you have 4 possible operations: Deploy, Mint, Send, and Cancel.

🙌 Deploy

Deploy creates the rules of the token, such as the max supply and how much of it can be minted at once. But that’s where most of the similarities end.

The ticker can be any size (not just 4 characters), meaning you can even deploy things like domain names.

ORC-20 also enables advanced features, such as the ability to change a token’s properties in the future.

You can additionally include messages or custom fields to unlock more functionality.

You can even wrap your existing BRC-20 token into ORC-20 format! This is irreversible ⚠️

🍀 Mint

Minting an ORC-20 token works fairly similarly to minting on BRC-20.

You just need to specify the amount you’d like to mint, and also include the inscription ID of the Deploy inscription.

📤 Send

Sending ORC-20 tokens is very different compared to BRC-20.

ORC-20 transactions use a UTXO approach. If you have 3000 ORC tokens and you want to send someone 1000, you would also send yourself 2000 as a new “input”.

You can Send to multiple recipients at once, and because of its UTXO approach, you must also send the remaining balance back to yourself to mark the end of a transaction.

Each “send” event is considered a partial ORC-20 transaction, which can be tracked as a Nonce.

⛔ Cancel

You can cancel partial transactions up until the final step of a Send operation, which is when you send yourself the remaining tokens.

Any sends made up until the “Cancel” inscription would still remain valid, though.

ORC-20 has already seen several upgrades since launching just a few weeks ago, known as Orc Improvement Proposals, or OIPs.

For example, OIP-4 employs a new “List” operation to allow marketplaces and operators to identify a collection of authentic inscriptions.

Another cool feature, OIP-5, allows you to reuse Mint & Send inscriptions ♻️

This massively increases efficiency over BRC-20 Transfers, which are single-use.

If someone sends you 100 orc, you can just take that same inscription and send it to someone else 📬 🤯

ORC-20 might have more features, but BRC-20 certainly already has the network effects.

Either way, ORC-20 is another example of the rapid experimentation happening on #Bitcoin

And we plan on covering it all 🫡

Give us a follow to learn more about the Bitcoin economy 🧠

RT 👇

https://twitter.com/1488577371049496581/status/1668264961590607882