Bitcoin was an early bird crypto and its blockchain technology laid the seed for today’s decentralized products. A seed that will be going to grow and bear fruit in the digital world is the BRC20 token. 

BRC20 token is a close cousin of the popular token standards Ethereum ERC20 and Binance BEP20, which have similar characteristics with little difference. This token standard was introduced as an experimental token standard on the Bitcoin blockchain in March 2023.

In this blog, we fly to land on the BRC20 token to explore what it is, why it is beneficial for businesses, and how you can create and use it to supercharge your business venture.

Let’s take off!

What is a BRC20 Token?

BRC20 token is a standard that sets rules for creating fungible tokens using the ordinal inscriptions on the Bitcoin blockchain. It uses JavaScript Object Notation (JSON) ordinal inscriptions to define token characteristics. ORDI, VMPX, PEPE, PIZA, and MEME are examples of this token standard.

In order to understand the BRC20 token better you need to know a few technical terms that are below:

Ordinal – Method of inscribing data (code, images, and text) into individual satoshis on the Bitcoin blockchain

Inscriptions – The data (code, images, and text) that is inscribed onto these satoshis.

Satoshis – Smallest unit of currency in the Bitcoin network, where 100 million satoshis = 1 bitcoin.

Fungible tokens – The crypto tokens or coins that are divisible and non-unique. for example, Bitcoin

Non-fungible tokens (NFTs) – The tokens that are indivisible, unique, and can’t replicated. for example, CryptoKitties

Hope you understand the technical terms above, right? Now let’s see the backstory of BRC20 tokens.

The Backstory of BRC20 Token

In the Bitcoin blockchain, there’s something called a satoshi, which is the smallest part of Bitcoin. You need a hundred million satoshis to make one whole Bitcoin. When we create it each satoshi gets a special number, like giving it a name in order. This way of numbering them is ordinal.

In the past, these ordinals only told us the order in which satoshis were made. After the Bitcoin blockchain was upgraded with Taproot (enhanced privacy, transaction speed, and security), they were able to accidentally use these ordinals to add more information to each satoshi. This change made satoshis small carriers of extra data like codes, text, and images.

Since this change, Bitcoin developers have been trying new ideas for what to do with this extra data. This led to the creation of two new things: Ordinal NFTs and BRC20 tokens. Ordinal NFTs are special and unique digital things that can be attached to Satoshi, such as images. On the other hand, BRC20 tokens are used for creating fungible tokens.

BRC20 tokens use the ordinals to attach a special code in a format called JSON (Javascript Object Notation) to satoshis. This JSON code has little bits of instructions that tell you everything about the token, like how many there are, how many we can create, and its name.

The BRC20 token standard has some really good things about it that have made it very popular. Here are a few benefits of holding them:

When this code is implement successfully, anyone with a Bitcoin ordinals wallet can connect to the network and create that token. Then, one can use it just like any other cryptocurrency and benefit from it. 

Benefits of the BRC20 Token Standard

Works Well with Bitcoin

One of the main advantages of the BRC20 standard is that the tokens from these standards can fit smoothly into the Bitcoin blockchain. It also means that the standard can use Bitcoin’s existing tools, like wallets and exchanges, which is why it’s quickly becoming popular among Bitcoin users.

Simple to Use

This token standard has a simple way of creating tokens, so it’s easy for people to use. Unlike other token standards like ERC20, BEP20, and TRC20 which need complex smart contracts, the BRC20 standard doesn’t require special technical skills to make or send.

Very Secure

BRC20 tokens are super secure because they use the strong security measure in the Bitcoin blockchain. Bitcoin’s decentralized nature and advanced security technologies make sure that the created tokens are well protected.

Room to Grow

As more and more projects start using the BRC20 standard, we can expect new and creative ideas to come up. This, along with the large and diverse network of users, will catch the attention of developers, investors, and users. This will help this standard to grow and become even better over time.

Related Article: BEP20 Vs ERC20 

What You Can Do With BRC20 Tokens?

If you’re unfamiliar with BRC20 tokens, they function similarly to digital coins and offer a variety of uses. Currently, you can use them in the following ways:

Peers Transfers

You can send BRC20 tokens to your peers as a form of digital value. It works just like sending regular cryptos, and you can do it easily no matter where your peers are. But remember, there’s a small cost when you send these tokens.

Decentralized Finance (DeFi)

BRC20 tokens could be part of a new system for handling financials on decentralized finance platforms. They can be involve in things like online trading, staking, lending, and earning rewards. Also, it’s a bit like online banking but more flexible.


BRC20 tokens are use to represent real-world assets such as dollars, gold, and even property. This can be useful because you can define the rules for these tokens using special codes.

Future Money Ideas

In the future, BRC20-based tokens will be like other cryptos to avail services or products. People are looking into new ways to use them for payments.

BRC20 tokens and related technology are still new and are in the developing stage. As time goes on, we’ll probably find even more ways to use them. With the current pace of development, it is probable that more practical applications for this token standard will emerge in the future.

The purpose of this blog is to provide information on the BRC20 token and ensure that you have a clear understanding of it. We will continue to update this blog with the latest developments in this area to enhance your knowledge. 

If you require more detailed insights on the BEP20 token and Ethereum token development, kindly feel free to contact the experts at Zodeak at any instant.