Token Standards: Introducing ERC-721's Cool New Twin – BRC-721E

What if I told you it's possible to transfer your NFTs on Ethereum to the Bitcoin network? Well, you might want to read further.

If you are new to the world of cryptocurrency and blockchain, most of what I will talk about here will look like gibberish. However, BRC-721E is one breakthrough in this ever-changing landscape that deserves your attention. And that is precisely why, before we go ahead and start with its capabilities and limitations, it makes sense to brush up on the basics first!

Tokens & Token Standards: Understanding the Basics

The best (and perhaps the simplest) definition of a token, in the context of the crypto world, is a cryptocurrency that is created, managed, and distributed on a blockchain-based technology (in this case, Ethereum). It often has a market value and some utility, making it a valued possession.

A token standard, as you may have already guessed by now, is a set of rules that command a token's design, behavior, and other attributes. And of course, like any other standard, it needs to be widely adopted for it to be accepted as a standard. These token standards help developers build applications and execute various other implementations.

But why are these important?

Now, here’s the important thing: when millions of users try and build their own tokens on top of a smart contract on Ethereum, it might be a bit difficult to keep track of all the different ways of code implementation. Token standards help streamline this by laying one common ground for developers working on similar tokens while leaving enough room for personalization, ensuring that the smart contracts remain compatible with existing decentralized exchanges despite the new additions.

Some of the most popular examples of token standards on Ethereum are ERC-20, ERC-721, ERC-777, ERC-1155, and ERC-4626.

Okay, got it. But what’s so special about the BRC-721E?

Before I start explaining the BRC-721E token standard, it’s vital we start by talking about the ERC-721.

ERC-721 is a non-fungible token (NFT) standard. Proposed by William Entriken, Dieter Shirley, Jacob Evans, and Nastassia Sachs in January 2018, ERC-721 introduces a standard for NFTs. Some of the functionalities offered by this token include:

• Transferring tokens across accounts

• Extracting the current token balance of an account

• Getting the owner of a specific token

• Offering approvals for amount transfers

  
  

Etherscan NFT tracker, CryptoKitties, Sorare, and the ENS are some popular NFTs that abide by the ERC-721 token standards.

Now that you’re familiar with ERC-721, we can go back to discussing BRC-721E. I know the terms can be confusing, but I am trying my best to demystify these for you!

BRC-721E is among the newest token standards, and it allows traders to convert their ERC-721 NFTs to BRC-721E tokens on Bitcoin. And would you be surprised if I revealed that within a few weeks of the announcement, Bitcoin grabbed the second spot on the leaderboard for NFT trading volumes, leaving Solana behind?

Here are a few highlights about the token standard jointly introduced by Ordinals Market and Bitcoin Miladys NFT Collection.

• The migration will be immutable and verifiable.
• NFTs will burn and appear automatically on the Ordinals marketplace.
• Zero possibility of double counting across the two blockchains.
• Even Ethereum NFT content as small as 100 bytes can be turned into a custom Ordinal.

It’s important to note that once you’ve executed the conversion, there’s no way to undo it. If you want to develop upon this new token standard, make sure you don’t make a hurried decision. Only an experienced blockchain developer or a domain expert can help you leverage the most out of this recent development.

Wrapping It Up

The BRC-721E token is already revolutionizing digital asset ownership and interoperability. It allows individuals and businesses to own assets securely, transfer them seamlessly across blockchain networks, and collaborate to create value. As blockchain technology penetrates further, the BRC-721E token will significantly transform the digital economy.

Keep an eye out for more updates!