Crypto narratives change all the time, but I think you will agree with me that one of the biggest one to have popped out of thin air is the BRC20 narrative.
BRC20 is a token standard that uses ordinal inscriptions of JavaScript Object Notation (JSON) to deploy token contracts and mint and transfer tokens. Tokens can be attributed to satoshis and then traded or swapped with others, just like with other tokens. BRC20 was created by an anonymous on-chain analyst named Domo in March 2023, inspired by Ethereum’s ERC-20 token standard.
On January 21, 2023, Bitcoin developer Casey Rodarmor introduced the Ordinals protocol, allowing metadata to be inscribed on the Bitcoin chain and assigned a script number.
These Ordinal inscriptions are a sophisticated process that transforms a satoshi, Bitcoin's smallest unit, into a distinct digital asset. Key network upgrades, notably the Segregated Witness (Segwit) protocol in 2017 and the Taproot upgrade in 2021 have been instrumental in making these inscriptions viable.
Ordinals and sats are two of the most popular BRC20 tokens so far. A lot more has been popping out every now and then.
As usual, ruggers and degens have capitalized on this trend. I have even seen a token that rugged two hours after it's launched because of a very successful pump, a lot of people bought into the hype of the BRC20 narrative.
BRC20 tokens are currently trending on the hype and popularity of Bitcoin which is their parent network, it also benefits from the security of Bitcoin.
Ordinals has caused a lot of NFTs to move over to the Bitcoin network, repackaging a technology that has long seem to drown in the waters of blockchain innovations.
There are currently over 32 million inscriptions on the Bitcoin network and you think that won't have an effect on the 13tps of Bitcoin network....?
One thing I have learnt in this market is that crypto thrives on hype and utility. It doesn’t take much to see the element of absurdity in this market, but as a niche market reaches its TAS (Total Amount of Suckers), a new narrative is required to keep the hopium level high and keep people flooding in to print from the narrative.
A blockchain is designed to be used as a distributed ledger; while there is no shortage of distributed ledgers available today, none have reached a point of decentralisation apart from Bitcoin. This is part of the reason why using Bitcoin block space as a storage method is so attractive versus using other blockchains; you have the security of knowing it cannot be tampered with by any one person.
These are the reasons why BRC20 tokens have been pumping insanely recently.
It is not late to buy a decent project under this narrative, but you have to be mindful so you don't fall for honeypots or put projects already at their ATH.
Hope you learnt something today, I am ticktalker and I always post crypto/educative contents.
Making each day count in the world of crypto is crucial for success. Plan, research, and learn to stay ahead. Keep pushing, legends! 💪💯
Until next time, stay SAFU.
Please whatever is written in the article above is for educative purposes only. I am not a financial advisor.
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