What is BRC 69? BRC 69 is a new standard on the Bitcoin network that has the potential to reduce costs by up to 90% compared to creating and trading Bitcoin Ordinals. So what’s special about BRC 69? Let’s find out with Weakhand in this article.
Before jumping into the article, everyone can refer to some of the following articles to better understand
- What is BRC 20? All you need to know about BRC 20
- What is ORC 20? Upgrade and evolution of BRC 20
- What is BRC 721? NFT standard on the Bitcoin network
- What is BRC 721E? Bringing NFTs on Etherum to the Bitcoin blockchain
What is BRC 69?
Background of BRC 69
Bitcoin Ordinals was launched in January 2023 providing users with a way to create NFTs on Bitcoin. Although it seems like this is just an experiment by Casey Rodarmor, in just the past few months, millions of Ordinal inscriptions have been minted on the bitcoin network although the limit of each Block being less than 4 megabytes is an obstacle.
Mining fees increased sharply in May 2023 and the number of Transactions on the Bitcoin network increased dramatically. This caused the Bitcoin network to become congested and Binance also had to block the BTC deposit/withdrawal process on the Bitcoin network for a period of time. Recently, the BRC 69 standard has emerged as a breakthrough solution to address the limitations of the Bitcoin Ordinals.
Overview of BRC 69
BRC 69 is a new standard that has the potential to reduce the cost of creating Bitcoin Ordinals on the Bitcoin network by up to 90%. This standard was proposed by Luminex – Launchpad platform for projects based on BRC 20 Token and Ordinal Inscriptions. By leveraging Recursive Inscriptions, BRC 69 introduces a mechanism that allows data to be extracted from existing Inscriptions, which can then be used to create new Bitcoin Ordinals. This ingenious approach allows recycling of already recorded data and significantly reduces the time and costs involved in creating Bitcoin Ordinals.
What is BRC 69?
So what are Recursive Inscriptions?
Recursive Inscriptions is a method that allows users to extract information from existing Ordinal Inscriptions and use this data to create new Ordinal Inscriptions. For example: If a user wants to create a collection of Bitcoin Ordinals, now just outline the textual features that the user needs then it can automatically display the final image on all interfaces. NFTs in the collection. This works like a general NFT but on Bitcoin and requires some custom changes.
The BRC 69 standard has brought very positive impacts on the Bitcoin network. According to data from Dune Analytics, the number of Bitcoin Ordinals has increased significantly since the appearance of the BRC 69 standard. Every day saw the number of Ordinal Inscriptions increase by more than 250% and reached a record of 385,920 Inscriptions on June 9, 2023. This is the highest number since May 2023.
Mechanism of Operation of BRC 69
The implementation process of BRC 69 standard takes place in the following 4 steps:
- Data Mining: The first step involves extracting data from existing Ordinal Inscriptions on the Bitcoin blockchain. This data serves as the foundation for creating new Ordinal Inscriptions using Recursive Inscriptions.
- Text-based Inscriptions: With BRC-69, people who can mint Bitcoin Ordinals only need to write a line of text instead of an entire image. This text acts as a blueprint containing the information needed to display the final image on all Bitcoin Ordinals interfaces.
- Display image: Once Text-based Inscriptions are created, the protocol’s Recursive Inscriptions mechanism automatically displays the final image on all NFT interfaces in the compatible collection. This rendering process uses on-chain resources, eliminating the need for off-chain rendering services.
- Recycle data: BRC 69 leverages existing data stored on the blockchain. By recycling data, the standard optimizes space usage and reduces redundancy, creating a more efficient and scalable system.
Advantages and Disadvantages of BRC 69
Advantages of BRC 69
The BRC 69 standard offers several notable advantages that make it a game changer in the world of Bitcoin Ordinals:
- Recycle data: BRC 69 allows the reuse of data already recorded on the blockchain. This recycling mechanism reduces redundancy and optimizes the use of available space.
- Cost effective: With Recursive Inscriptions, the costs associated with creating Inscriptions are significantly reduced, saving both time and resources. Users can now record a line of text instead of a full image, resulting in a more cost-effective process.
- Ability of extension: By eliminating the data limit of 4 megabytes, BRC 69 enhances scalability. It opens up new possibilities for storing larger volumes of information, expanding the potential use cases for Bitcoin Ordinals.
Disadvantages of BRC 69
Because the BRC 69 standard has only been released for a short time, it certainly still has some disadvantages, including:
- User scope: Because it has just been launched for a while, BRC 69 has not yet received much acceptance from the Bitcoin user community in particular and the Crypto community in general. Therefore, it takes more time for BRC 69 to be replicated with more users.
- How it works is complicated: Indeed, compared to other standards on Bitcoin such as BRC 20 or BRC 721, the BRC 69 standard is actually much more complicated. This is a big barrier for creators as well as projects that want to implement this standard.
Potential Applications of BRC 69
The introduction of the BRC 69 standard opens up many new use cases for Bitcoin Ordinals. Here are a few potential applications:
Digital art and collectibles
Artists can now create and store complex digital art on the Bitcoin blockchain using BRC-69. Removing data limits allows for more detailed and engaging creations, enhancing the value and uniqueness of digital art and collectibles.
Protect intellectual property rights
BRC 69 allows information related to intellectual property rights, such as patents, copyrights and trademarks, to be stored directly on the blockchain. This ensures immutable proof of ownership and offers a decentralized solution for intellectual property protection.
Supply chain transparency
Businesses can leverage BRC 69 to increase supply chain transparency. By recording product information, certification and relevant traceability data on the blockchain, consumers can easily verify the authenticity and origin of goods, strengthen trust and reduce risk. risk of counterfeit goods.
Decentralized identity system
With the removal of data caps, BRC 69 could facilitate the development of decentralized identity systems. By securely storing identity-related information on the blockchain, individuals have more control over their personal data while enabling seamless verification processes.
summary
The BRC 69 standard represents a significant step forward in the world of Bitcoin Ordinals. By introducing Recursive Inscriptions and removing the 4 megabyte data limit, BRC 69 revolutionized the process of creating Ordinal Inscriptions on the Bitcoin blockchain. This innovation brings cost efficiency, scalability, and data recycling to the ecosystem, expanding the possibilities of using non-financial data on the blockchain.
