Bitcoin Request for Comment 20 BRC-20 tokens
BRC-20 is a Bitcoin token standard, inspired by Ethereum's ERC-20, introduced by a developer named Domo in March 2023. Unlike Bitcoin's BIP process for changes, there haven't been any other "BRC" numbers. BRC-20 tokens utilize JSON ordinal inscriptions to create and move tokens around. Ordinals assign a unique serial number to a tiny unit of bitcoin called a satoshi, verifying ownership and preventing double spending. BRC-20 tokens are not as fancy as smart contracts yet but can mint, deploy, and transfer tokens. BRC-20 tokens require additional space on the blockchain, resulting in higher transaction fees and competition for block space. Nodes on the blockchain receive transaction fees, motivating them to keep the blockchain running smoothly. BRC-20 tokens have been accused of clogging up the network and driving up fees, which some Bitcoin maximalists argue deviates from Satoshi's original vision.