BRC-20 Tokens: Everything You Need To Know

By Bernard Ekal
8 Min Read

Fungible tokens are developing and taking the cryptocurrency in an increasing wave, its interchangeability and equal worth have greatly raised its usage and adaptability by various cryptocurrencies. But what are fungible tokens? These are digital assets which can be exchanged and are identical in value. Recently, Bitcoin has introduced the BRC-20 token standard in Bitcoin Blockchain.

BRC-20 token standard is mainly exercised in Bitcoin. Cryptocurrency has managed to conquer the financial institutions and how people are looking and investing in wealth.

Fungible tokens have opened several possibilities to the crypto industry, in the case of BRC-20 token has been playing a crucial way in the advancement of the bitcoin blockchain, It has enabled the tokenization and creation of digital assets. 

Moreover, individuals can learn how individuals can earn through non-fungible tokens.

What Are BRC-20 Token?

BRC-20 token was officially introduced into the Blockchain technology on the 9th of March 2023, this concept was brought to life by Domo, a Blockchain-enthusiastic analyst.  He designed the token mainly to be used by Bitcoin, moreover, it is an experimental fungible token. But what is BRC-20 Token standard? The BRC-20 token standard is an experimental token standard that uses ordinal inscriptions to enable the minting and transfer of fungible tokens on the Bitcoin blockchain. The token standard is similar to the ERC-20 token standard on Ethereum and EVM blockchain networks.

BRC-20 token was created and designed to facilitate the transaction and creation of fungible tokens through the ordinal protocol. Unlike the ERC-20 token which emphasizes smart contracts in their adaptability, the token uses ordinal protocols to mint and transfer fungible tokens. 

Although BRC-20 tokens were introduced in early March 2023, it has gained massive interest from the Bitcoin community. Moreover, over a short period, development has been made to enhance its adaptability and user experience. Moreover, the token allows its developers to create and trade the token in different wallets. The BRC-20 is pushing the creativity of developers if a developer introduces a certain idea, other developers push the idea creating a new concept. 

This article in DroomDroom will educate readers on the limitless potential of Blockchain innovations.

How Does The BRC-20 Token Work?

So, how does BRC-20 function? Has said earlier ordinals are used to mint and transfer tokens. The token utilizes an ordinal inscription of JSON inscription to program Satoshi. Moreover, the ordinal protocol is a numbering system that is used to number Satoshi. 

The BRC-20 tokens are used to mint and transfer a specific number of tokens. The BRC-20 token standard creates a BRC-20 token standard with a deploy function, minting an amount of BRC-20 token with the mint function and finally transferring an amount of BRC-20 token via the transfer function. 

The token standard is new in the market, and despite the hype, it has little utility at present. Moreover, the token is an experiment by developers to facilitate fungibility on the Blockchain. Despite the hype being overwhelming, the BRC-20 token is in its infant stage, additionally, it is being tested by developers and anything could go wrong. But how can individuals purchase the tokens? 

Individuals can however learn what it is bitcoin and how it is mined in this article posted by DroomDroom.

To purchase the BRC-20 token standard individuals need to have a wallet that supports the token or the ordinal wallet to engage in the activity. The wallet should also be linked to the platform in which purchasing the token will happen. The transaction is done through BTC; therefore, users should ensure their wallets are loaded with BTC before purchasing the token. 

Buyers should also be cautious before purchasing the BRC-20 token, they should contrast the price of the token with the rates. If the price is pleasing, then individuals can move forward in purchasing the token.

Pros And Cons of BRC-20 Token

Just like any advance that is initiated in the financial industry, there are good and bad sides to it, in this section, we dive into the pros and cons of BRC-20 Token. What are the reasons that have made the token rise and what is contributing to its failure? Below are the pros and cons. 



The BRC-20 token standard is created under the Blockchain technology which is believed to be the most secure chain. The token therefore encourages the security of assets to its investors. Moreover, Blockchain technology is a decentralized technology that is not controlled by any individual, its logarithmic consensus system helps to strengthen the security of the token. Through this, the token is secured thus promoting its integrity to developers and investors. 


The token is new in Blockchain technology and cryptocurrency at large, the possibilities of its expansions are high, and the hype and the embrace the token has received from the Bitcoin community is set to increase its growth. Moreover, the BRC-20 token is coupled with a vast and diverse network base, it has also attracted several investors’ and developers’ attention. Through developers, the token is a promising project that is bound to change cryptocurrency technology.


Dependency of Blockchain Network

The dependency of blockchain networks limits the BRC-20 token in several ways. For example, in the blockchain network when a huge number of transactions are conducted in the network, it causes congestion. Moreover, the Blockchain network is limited, for instance, scalability and low transaction speed limit the Blockchain. The troubles will increase as the number of ordinals are created in the Blockchain, nevertheless, the token utility will increase congestion which is not good during transactions.  

To understand more about cryptocurrency tokens, you can visit this article in DroomDroom.


Just like any other technology, advancement is open, and the future of the BRC-20 token will be determined by the market and Blockchain technology. Moreover, before engaging in any activity individuals should conduct significant research about the token. Additionally, the process of minting, deploying and transferring the token is tricky. 

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By Bernard Ekal Blockchain writer
I'm Bernard Ekal a crypto enthusiast and technical writer. I mainly write news on Blockchain technology and cryptocurrencies. I create informative articles that bring solutions to readers. I create engaging articles, educative and well crafted which enhance readers knowledge in crypto and Blockchain technology.