Summary of Potential BRC 20 Projects

With Bitcoin’s recent price increase, BRC 20 and Ordinals tokens have become significantly more popular. On December 12, 2023, Sats – a BRC 20 token following ORDI was also listed on Binance. Everyone, let’s summarize potential BRC 20 projects right in the article below.

Before jumping into the article, everyone can refer to some of the following articles to better understand.

• What is Bitcoin Ordinals? Everything about Bitcoin Ordinals
• What is BRC 20? All you need to know about BRC 20
• BRC 20 brings innovation and disruption to the Bitcoin network

Overview of BRC 20

How are Ordinals created?

Oridinals is an NFT on the Bitcoin network. Ordinals make each Satoshi a unique NFT by assigning a unique and immutable identifier to a Satoshi (Ordinal Number + Comment where Comment will contain the data assigned to each Satoshi). Therefore, Ordinals assigns a higher transaction and collection value to Satoshi.

Since Ordinals was created in December 2022, approximately 7.8 million Ordinals Inscriptions have been minted as of May 18, 2023, opening a new door for the Bitcoin ecosystem.

Unlike NFTs on other Blockchains such as Ethereum, Ordinals NFTs are hosted entirely on the Bitcoin Blockchain. Once an Ordinals NFT is minted, its metadata cannot be changed, while ERC 721 NFTs usually only contain an ID to a URL to retrieve the NFT’s metadata. So the metadata on NFTs can be changed by the development team at any time.

In general, both of the above methods of creating NFTs have advantages and disadvantages. The main differences between these two methods can be summarized in the following table:

Although still in their early stages, a number of prominent NFT projects have begun to enter the market. Yuga Labs’ Twelvefold went live on the Bitcoin network with 7,115 NFTs after its announcement on February 27, 2023. CryptoPunks also issued 10,000 Bitcoin Punks or Dogods also have their NFT version on the Bitcoin network.

According to a report by Galaxy Digital, the Bitcoin NFT market size could reach 4.5B USD by 2025. In addition, the infrastructure supporting the development of Bitcoin NFT is also being strongly developed with the emergence of many many new projects or the participation of large parties such as OKX.

BRC 20: Ordinals Development

Usually Ordinals NFTs are created by filling in different information for each Satoshi, helping them differentiate from other Satoshis. However, if Satoshis are filled according to a unified standard (i.e. deploy, mint and transfer) then we can create tokens on the Bitcoin network.

That is also the idea that developer Domo implemented with the BRC 20 standard and made BRC 20 tokens extremely popular at the present time. Simply put, BRC 20 can be considered a variation of Ordinals NFT in that Ordinals NFTs have data in image form and BRC 20 tokens have text data in a unified JSON format.

The ORDI token is the first token issued under the BRC 20 standard (launched on March 9, 2023) with a maximum of 1,000 tokens minted at a time and a total supply of 21,000,000 tokens. ORDI is free in the early stages of release and users only need to pay gas fees to receive tokens. All 21,000,000 ORDI tokens were minted in less than 18 hours. As of now, the price per ORDI token has exceeded 50 USD.

According to data provided by CoinGecko, the total BRC 20 market capitalization has exceeded 1.3B USD with total trading volume exceeding 1B USD. This shows the fomo and popularity of BRC 20 tokens at the present time.

How does BRC 20 affect Bitcoin and the Bitcoin ecosystem?

BRC 20 greatly impacts Bitcoin mining and transaction fees. Minting and transferring BRC 20 tokens requires more Blockchain space due to its complex design so competition for block space may result in higher transaction fees for users who want fast confirmations.

According to data provided by Glassnode, miner fee revenue is increasing again due to the popularity of ORDI or Sats and the minting of new BRC 20 such as new tokens such as VMPR or MUBI.

This is also partly positive for the Bitcoin network in the long run. Because everyone knows that after each having cycle, the block mining reward will decrease by half and with this new revenue source from BRC 20, miners will have more motivation to maintain the Bitcoin network.

BRC 20 Is Gaining Popularity But Remains Potentially Dangerous

Why has BRC 20 become so popular?

With the second Sats – Token BRC 20 being listed on Binance and officially reaching a capitalization of over $1 billion, the BRC 20 trend is indeed increasingly accepted by many people and has become a new trend in the market. So what makes BRC 20 become so popular?

First, BRC 20 cannot interact with Smart Contracts (i.e. there is no recording and locking functionality). This means that the issuance of BRC 20 tokens will be carried out in a fair launch format and everyone will truly participate equally in the project. This is a unique point and goes against most Crypto projects on the market today when launching tokens.

Second, BRC 20 is a new story in the industry and is also deployed on the most famous Blockchain on the market, Bitcoin, so it is easy to attract capital inflows and the participation of developers to continuously improve. improve and upgrade infrastructure.

Subsequent minting and trading of BRC 20 significantly increases transaction fees. High fees and block rewards generate significant profits for Miners. Since then, the BRC 20 trend has continued to become increasingly popular in the market.

Although BRC 20 is gradually becoming popular, it is still potentially dangerous

Although BRC 20 is becoming increasingly popular, at this time the BRC 20 standard is still relatively complex and requires additional data storage and transaction steps. Specifically, when users mint Ordinals they need to run a full node. Whether it is cumbersome node construction or expensive gas fees on Bitcoin, retail investors still face barriers to entering the market to a certain extent.

Next is the network issue, we saw it appear in May 2023 when Binance had to suspend the withdrawal function on the Bitcoin blockchain twice. On May 8, 2023, no Blocks were created in one hour and there were 350,000 unconfirmed Transactions. When fee revenue consistently exceeds block rewards, this will cause miners to choose to process transactions with higher gas fees and ignore transactions with lower gas fees.

Finally, the BRC 20 infrastructure is still in its early stages and the majority of BRC 20 tokens on the market are Memes with no real value and no application scenarios. This means that if users buy the right good tokens, it’s okay, it will bring big profits, but that’s just the surface and most of the current BRC 20 tokens are junk coins and no one trades on it anymore. market.

Summary of Potential BRC 20 Projects

Although there are many risks involved in investing in BRC 20 tokens, as an investor we should not ignore this potential trend. So what are the outstanding BRC 20 projects on the market? Let’s find out together.

ORDI – The first BRC 20 project on the market

ORDI is the first BRC 20 project on the market and is also a test version of Domo in its effort to issue tokens on the Bitcoin Blockchain. On March 9, 2023, the first ORDI tokens were minted at a mint price of 2 – 3 USD for 1,000 ORDI Tokens, meaning the price for each ORDI token at that time was 0.003 USD. The current ORDI price is 54 USD, which shows that over the past 9 months, the ORDI token has increased nearly 20,000 times.

ORDI is also the project that owns the largest community in the BRC 20 ecosystem and is listed on most major Cex exchanges in the market such as: Binance, OKX, …. Although at the moment, ORDI operates similar to a Memecoin, its popularity has created a springboard to attract developers and more and more applicable projects appear on the market.

Sats – Unisat’s darling

Sats is simply a Memecoin minted on Bitcoin using the BRC 20 standard. When it comes to Sats, the biggest impression people have about it is its extremely large supply. The total supply of Sats is 2,100,000,000,000,000 which is 2,100 trillion, 100 million times more than Bitcoin.

Therefore at the beginning of its launch, many users did not believe that this BRC 20 token would eventually be completely minted. But with users’ interest and very strong belief in Sats – A meme named after Satoshi Nakamoto was finally fully created.

With the expansion of the Sats community, UniSat – the largest wallet developer in the BRC 20 ecosystem also shows interest in this token. If you don’t know, UniSat Wallet is a Chrome plug-in wallet for the Bitcoin ecosystem, helping users store, mint and transfer BRC-20 tokens including buying and selling BTC, NFTs, domains, etc. .

On October 16, 2023, UniSat announced the use of Sats tokens as gas fees for its new product brc20 – swap. Each user trading on brc20 – swap will be charged a fee of 0.3%, of which approximately ⅙ (0.05%) of this fee will be collected by UniSat and the remaining ⅚ (0.25%) will be allocated to Liquidity Providers (LPs) providing provide liquidity on brc20 – swap. This fee structure is largely based on the exchange rate standards currently used by Uniswap. Regarding the use of fees, UniSat announced that it will donate 2% of its revenue to L1F (Layer 1 Foundation). In addition, UniSat also announced that it will publish the fully explained and verified code of brc20 – swap in the near future.

In addition, recently on December 12, 2023, Sats was also listed on the largest Cex exchange in the market, Binance. The market capitalization of Sats has also surpassed 1B USD and surpassed ORDI to become the BRC 20 token with the largest capitalization on the market.

Multibit (MUBI) – First bridge to transfer between BRC 20 and ERC 20 tokens

MultiBit is the first Bridge designed for easy transfers between BRC 20 and ERC 20 tokens. MultiBit’s mission is to help users seamlessly transfer money end-to-end from Bitcoin and EVM-compatible Blockchains such as Ethereum, BNB Chain and Polygon.

With the explosion of the BRC 20 trend recently, the MUBI token also responded with impressive growth from about 0.016 USD to 0.12 USD. Although MultiBit’s product is still in the early stages and needs further improvement, this is still a breakthrough in building infrastructure and increasingly helping the BRC market become stronger.

TurtSat – Gitcoin version on Bitcoin

TurtSat already supports the BRC 20 and ERC 20 bilateral markets, and BRC 20 users can trade through Unisat and OKX. Since its launch, the TurtSat platform has launched a total of 4 BRC 20 projects including asset protocol CHAX, Crosschain bridge MUBI, Ordinals aggregation platform NHUB, and lending platform Ordinals DOVA. These projects were the first to build BRC 20 infrastructure and had good growth after the project was implemented.

summary

BRC 20 is increasingly receiving attention and concern not only from users but also big players in the market such as Binance or OKX. Hopefully through this article, everyone can synthesize potential BRC 20 projects.