Are BRC-20 Tokens Worth Investing in?
The meme coin frenzy has taken over the timelines of crypto social media for the past months. However, behind the scene, the resurgence of meme coins is empowered by the latest innovation in the Bitcoin ecosystem- Ordinals contracts and Inscriptions. In this article, we are going to explain what Ordinals and Inscriptions are. Its effects on BRC- 20 tokens. And despite the risk, why do some people say BRC-20 tokens are superior to ERC-20 tokens?
What are Ordinals and the relationship with BRC-20?
To have a better understanding of BRC-20, it is better to touch upon how the Ordinals and Inscriptions work first.
Ordinals is an open-source mechanism that is able to track a series of specific numbers of satoshis. Satoshis are the smallest unit of the Bitcoin network. And Inscriptions is a process of inscribing data onto a particular satoshi. By inscribing data onto individual satoshis via Ordinals, we can deploy, mint, and transfer fungible tokens. And this token standard is named BRC-20. The tokens being created based on it are called BRC-20 tokens.
What are The Differences between BRC-20 and ERC-20 Tokens?
Like ERC-20, BRC-20 has enabled developers to create and manage tokens based on it. Since the BRC-20 tokens are built on Bitcoin networks, they have significant differences from the tokens that are based on the Ethereum network. The main differences are the lack of smart contract functionality and less mature market infrastructure.
ERC- 20 tokens are created on Ethereum via smart contract. Therefore, they have a profound degree of programmable functionality. Comparably, the BRC-20 tokens have no smart contract base.
In terms of infrastructure support, Ethereum has enabled the creation of DEX, cross-chain capabilities, and so on. While conceptualized for only a few months, BRC-20 is still in its beginning stage.
Why Do Some People Think BRC-20 Tokens Are Superior to ERC-20?
One key feature is that BRC- 20 token mints are fair launch. Specifically, once someone submits the transaction of the tokens on BRC-20, everyone has the same opportunity to claim the tokens. Whereas, on ECR-20, the economic model, team allocations, and whitelist are applied for token distributions. People probably need to think about where the contract is and who controls it. What is the distribution? The default of BRC-20 is more simplistic.
However, some people may argue that it is because of the existence of team allocations and whitelist for ERC-20 tokens, rug pulls and scams can be avoided. Therefore, BRC-20 tokens are still considered risky tokens.
How to buy BRC-20 tokens?
Ordinal Exchange- you will need an ordinal wallet in order to exchange. Go to ordinalswallet.com and create your ordinal wallet.
Listed Centralized Exchange- you can go to centralized exchanges where BRC-20 tokens are listed. CoinW has witnessed quite a few price spikes of the BRC-20 tokens since their listing on CoinW. Popular BRC-20 tokens, such as BisoSwap, PEPE, Sponge, and LADYS etc can be traded on CoinW.
