In this guide, we will learn about the BRC20 token standard, how it works, and how to deploy our token in the Bitcoin network. Moreover, I’ll guide you through the interface of existing ecosystem services such as Unisat and LookOrdinal. So let’s start!
What is BRC20?
BRC-20, an innovative token standard, is paving the way for the creation and transfer of fungible tokens through the Ordinals protocol on the Bitcoin blockchain.
Inspired by Ethereum's ERC-20 tokens, BRC-20 tokens incorporate distinct mechanisms and functionalities. Although they gained immense popularity in the first half of 2023, it's important to note that BRC-20 tokens are still experimental.
How does it work?
To comprehend the workings of BRC-20 tokens, one must familiarize oneself with the Bitcoin Ordinals protocol. This protocol introduces a system for numbering satoshis and permits users to attach additional data to these units, known as "inscription."
BRC-20 tokens leverage the Ordinals inscriptions of JSON data to deploy token contracts, mint tokens, and facilitate token transfers. Presently, the BRC-20 token standard enables the creation of BRC-20 tokens through the deploy function, the minting of a specific token amount via the mint function, and the transfer of BRC-20 tokens using the transfer function.
The first BRC-20 token to be deployed was named "ordi", prompting Bitcoin wallets to adopt the necessary tools to support BRC-20 tokens swiftly. Subsequently, numerous other BRC-20 tokens emerged, including several meme tokens. By May 2023, specific BRC-20 tokens had experienced astronomical price surges and obtained significant market capitalization. However, the high demand for BRC-20 tokens resulted in increased Bitcoin transaction fees and notable congestion on the Bitcoin network.
Installing Wallet
Unisat is currently the only wallet displaying Bitcoin ordinal NFTs and BRC20 tokens as well. We can install it as a Chrome extension.
Get the wallet here: https://unisat.io/download
Select Address Type: Taproot during wallet creation
After creating the wallet, we need to send some money for minting/deploying BRC20. Just copy your wallet’s address and send the desired amount from an exchange of your choice.
Exploring Unisat
Unisat not only provides a wallet for displaying Ordinal NFTs and BRC20 tokens but also offers a comprehensive suite of services, including token searches, BRC20 minting/deployment, and a marketplace.
Inscribe Page
Here we can mint Ordinal with some file content or with text, mint/deploy brc-20, or mint .sats
,.unisat domain names. Workflow is quite similar to minting NFTs on EVM-like blockchains with the difference that Ordinals store all of the data on the chain, whether it’s an image, JSON, etc.
If we click on brc-20 tab on Inscribe Page, we would get such a modal window. Here you can select whether to Mint an existing token by the tick or deploy your own.
When deploying your BRC-20 you can specify a tick of 4 symbols max, case-insensitive, total supply, and limit per mint.
To be honest, I’ve tried to imagine some tick that could be free and had no luck😄 Moreover, I’ve asked ChatGPT to give me 10 names for tokens consisting of 4 chars, and all of the ticks it gave me were registered as BRC20 on 23rd of March 2023.
If you want to mint an existing token, you’d better check if it hasn’t been minted completely already.
Search
Here we can check if any brc-20 token exists and the availability of .sats, and .unisat names.
BRC-20
On this page, we can check the balance of the address, check the status of tokens, and info about holders and transactions done. If you want to mint one of the existing BRC-20 tokens, you can find one here under In progress filter.
Exploring LooksOrdinal
LooksOrdinal offers us the ability to mint file/text Ordinal NFT, .sats, .unisat domain names and mint/deploy and transfer of BRC-20.
BRC20 trading
This page allows you to bridge your Ordinals or BRC-20 tokens to the Ethereum network. You get an NFT with metadata containing a link to Ordinals original inscription. Also, there is an ability to bridge your Ordinals or BRC20 back to the Bitcoin network.
Useful Resources
It is worth noting that the BRC-20 token standard is relatively new, and the process of deploying, minting, and transferring BRC-20 tokens may not be user-friendly. Here are some resources that could help you to get started:
- https://brc-20.io/ - List of tokens in BRC20 ecosystem
- https://unisat.io/ - Wallet, Mint/Deploy of Ordinals/BRC20, Marketplace
- https://looksordinal.com/ - Wallet, Mint/Deploy of Ordinals/BRC20, BTC-ETH Bridge
Conclusion
I hope you found this guide helpful and learned something new about the ecosystem of Bitcoin Ordinals and BRC-20 tokens. Although the ecosystem of BRC-20 tokens is like a meme coin universe, as none of them have any utility, maybe we will see some more interesting use cases and features on top of the Ordinals protocol soon. Stay tuned and follow me for more guides and news from the blockchain world!
