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Author: Admin | 2025-04-28
The recently introduced BRC-20 token standard on Bitcoin was inspired by Ethereum’s ERC-20 token standard, hence the similarity in name. However, the two also have significant differences. Read on to learn more about the similarities and differences between BRC-20 and ERC-20. What Is the BRC-20 Token Standard?BRC-20 (Bitcoin Request for Comment 20) is an experimental standard for fungible tokens on Bitcoin, enabling the creation of digital tokens on the Bitcoin blockchain. The new token standard is powered by Ordinals, a protocol that allocates ordinal numbers to satoshis (sats) in the order in which they are mined without making any changes to the Bitcoin protocol. This numbering scheme, called Ordinal Theory, allows individual sats to be inscribed (appended) with data, transferred, and tracked throughout the Bitcoin supply. A token standard is a set of rules that guides how tokens are created, managed, and issued on a blockchain. It allows tokens to interact with each other predictably. Typically, different blockchains have varying standards and rules for various types of tokens.The Ordinals protocol’s initial use case was the creation of on-chain, Bitcoin-native, non-fungible tokens (NFTs). Nonetheless, developers have built on Ordinals to expand its use cases and capabilities. The BRC-20 token standard emerged from the enthusiasm surrounding building on Bitcoin using Ordinals. The first wave of BRC-20 tokens has been dominated by meme coins, with the likes of DOMO, ORDI, and PIZA emerging early on as some of the largest tokens by market capitalization. Pseudonymous developer Domo developer introduced the BRC-20 token standard to Bitcoin in March 2023. He modeled it after Ethereum’s ERC-20 token standard, even though they aren’t identical. According to Dune Analytics, over 21 million BRC-20 tokens have been minted so far at the time of writing.You can mint BRC-20 tokens with Xverse Mint App.What Is the ERC-20 Token Standard?ERC-20 (Ethereum Request for Comment 20) is a standard for fungible tokens on the Ethereum blockchain. Developer Fabian Vogelsteller proposed the token standard in 2015 via the Ethereum Improvement Proposal (EIP) process. As the twentieth comment, the proposal got the name ERC-20. It was later approved and implemented in 2017.ERC-20 tokens are generated using smart contracts, and you’ll need ETH to create an ERC-20 token. So far, developers have minted over 450,000 ERC-20 tokens. The standard consists of several rules that guide developers in building smart contract-powered ERC-20 tokens. These rules state that tokens must have names, symbols, and decimals. They also define how tokens are transferred, how to check the token balance, and how to set the total supply, among other things. The ERC-20 token standard is crucial since it enables interoperability between smart contracts within the Ethereum ecosystem. This allows developers to correctly predict how tokens function and interact with other tokens. BRC-20 vs. ERC-20: A Side-by-Side ComparisonHow Does BRC-20 Compare to ERC-20 in Terms of Adoption And Market Capitalization? The ERC-20 token standard has existed since 2017, making it more established than BRC-20. Some of the most popular tokens in the crypto space today, like stablecoins Tether USD
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