Bitcoin BRC-20 Tokens: The Emergence of the Unimagined BRC-20 tokens have emerged as a groundbreaking development in the world of cryptocurrencies, bringing forth possibilities that were once unimaginable. While Bitcoin has long been recognized as the pioneer and dominant force in the crypto space, its functionality was limited primarily to being a digital currency and store of value. Bitcoin However, with the introduction of BRC-20 tokens, the Bitcoin blockchain has taken a significant leap forward in terms of programmability and decentralized application (dApp) capabilities. The topics discussed in this article are NOT, in any way, financial advice. Please always remember to do your own research. BRC-20 Tokens: Explained In Simple Terms Similar to ERC-20 tokens, BRC-20 tokens allow developers to create and deploy smart contracts on the Bitcoin network. This opens up a whole new realm of possibilities, enabling the creation of decentralized applications, Non-Fungible Tokens (NFTs), tokenized assets, and innovative financial instruments on the robust and secure Bitcoin blockchain. Ethereum's https://twitter.com/intotheblock/status/1655286439406338050?embedable=true One area where this fascinating innovation dazzles is the development of fungible tokens. Several years ago, no one would have imagined the Bitcoin network would compete with its Vitalik Buterin-led counterpart in this regard. But as usual, nothing is unexpected in the crypto world. It would interest you to know that the BRC-20 token standard only started as a trial-and-error concept in March 2023. But to what end? Well, according to Domo, the developer, the core functionality of the token standard is to ensure that fungible assets can be traded on the blockchain via Bitcoin Ordinals. https://twitter.com/domodata/status/1633658974686855168?embedable=true The Twitter-famous on-chain analyst, and "Dune wizard" seemed to be betting big on the sustainability. Lately, he tweeted about how elated he was for BRC-20 transactions to have grabbed a sizable percentage of the total Bitcoin transactions. Interestingly, the availability of Bitcoin Ordinals also made this possible. For the uninitiated, Bitcoin Ordinals has been gaining traction since 2023 began. These assets allow texts, code, and images, which act as non-fungible assets to be inscribed on satoshis— the smallest unit of Bitcoin. But now that the experiment has been validated, thousands of tokens have emerged. A look at the data from showed that the overall market capitalization was close to $1 billion. The market cap, as it is fondly called, considers the circulating supply and prices of assets in order to get its own value. BRC-20.io Interestingly, a bunch of the tokens have recorded hikes in value, propelling investors' attention toward them. It is even more bewildering that some of the tokens adopted the names of existing under the network. memes ERC-20 Like it is on Ethereum, there is also a Pepe meme token on the BRC-2 network with a market cap of $557.5 million. Although these tokens are currently enjoying a great deal of hype, it is important that you remember that they are volatile assets. Therefore, you should only invest funds that you are comfortable losing, especially as these tokens have not proven to be sustainable long-term holds. That said, how can you buy some of these BRC-2O tokens? Where To Buy BRC-20 Tokens Usually, most cryptocurrencies that perform well within a period tend to enjoy an influx of participation. In BRC-20's case, it's no different. However, due to the fact that these tokens are relatively new, it might be confusion on how and where to get them. Not to worry, this section will tell you three of the most sought-after platforms to buy these tokens. But first, you must remember that you need a Bitcoin wallet before you can own any of these tokens. Taproot-enabled Now, that you do, let's forge ahead by listing the platforms to buy and sell BRC-20 tokens. UniSat Ordswap Ordinals Wallet The process of buying BRC-20 tokens on any of the exchanges above is similar. For each transaction, you will need Bitcoin in your wallet to pay transaction fees, which have been soaring at the time of this writing. In addition, you would also need to exchange Bitcoin for the equivalent of the tokens to holders. And if you already own some, you can definitely transfer from one wallet to another. Now, how does Bitcoin's BRC-20 compare to Ethereum's ERC-20? In the next segment, you'd learn how these concepts differ from each other and where one outshines the other. ERC-20 vs. BRC-20: What Are The Differences? For someone who is not familiar with the crypto ecosystem, it is possible to assume that the differences only exist in the fact that one functions on the Ethereum blockchain while the other operates on Bitcoin. But it is far more than that. Let's get right into it. Unlike BRC-20 tokens, ERC-20 does not require a 10-minute wait for transaction validation and approval. But in the former's case, each Bitcoin block needs to be inscribed so as to confirm the transaction. Secondly, BRC-20 tokens are not like ERC-20 assets. This means that applications like liquid staking protocols, and lending platforms cannot exist on the network. And this is something ERC-20 tokens seamlessly interact with. smart contracts While ERC-20 tokens are native to the Ethereum blockchain, BRC-2O assets fall under Ordinals and are not directly linked to the Bitcoin blockchain. Final Thoughts In conclusion, you should keep in mind that Bitcoin BRC-20 tokens are still in their early stages. There is no confirmation yet that these assets can be profitable or will remain in existence in the near future. Thus, it is necessary that you do not consider this article as investment advice, and do your own research. Also published here.

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