What Is a BRC-20 Token?

BRC-20 is an experimental fungible token standard using ordinal inscriptions on Bitcoin.

Should Bitcoin only be used as digital gold, or should it support more sophisticated functionality? The introduction of ordinal NFTs sparked a new wave of interest in Bitcoin, with the community beginning to experiment with the potential of using the Bitcoin network as a way of storing immutable data.

One such novel experiment is an attempt to create fungible tokens natively on Bitcoin through a standard called BRC-20. In this post, we’ll explore BRC-20 tokens, examine how they work, and consider their viability as a token standard on BitcoinWhat Are Bitcoin Ordinals?
First, a quick primer on ordinals. Ordinals enable data to be inscribed intoemi-fungible tokens using ordiOrdinals enabled NFTs to be created that are completely Bitcoin-native, don’t require layer-2 solutions, work without changes to the Bitcoin protocol, and are backward compatibleiptions.