BRC-20
An experimental token standard that issues fungible tokens on Bitcoin by embedding text data inside individual satoshis.
BRC-20 launched in March 2023, built on top of Ordinals. Tokens are defined by inscribing small JSON snippets onto satoshis, with simple operations to deploy a ticker and then mint it. There is no smart contract. Off-chain indexers read the inscriptions and agree on who owns what, which is a very different model from Ethereum tokens.
The standard set off a speculative frenzy, with tickers like ORDI reaching real market caps and clogging Bitcoin blocks with inscription traffic, pushing fees up. Critics call it a hack that bloats the chain. Supporters see it as proof Bitcoin can host more than payments. It remains crude and experimental.
Related terms
A system for numbering individual satoshis so data can be inscribed onto them, creating NFT-like artifacts on Bitcoin.
SatoshiThe smallest unit of bitcoin, equal to one hundred-millionth of a single coin.
TokenA digital asset issued on top of an existing blockchain, usually through a smart contract rather than its own network.
FungibleDescribes assets whose units are identical and interchangeable, so one unit holds exactly the same value as another.