How will BRC-20 and Ordinals affect the cryptocurrency market?
The phrase 'Bitcoin Request for Comment', abbreviated as the BRC-20 standard, came into our lives with the emergence of a new protocol called Ordinals at the beginning of January and has been at the top of the agenda of the crypto money market since then.
BRC-20 and Ordinals protocols take the first place among the most talked about topics in the crypto money market. The BRC-20 protocol, which exists on the Ethereum blockchain and is produced with logic similar to the ERC-20 protocol representing Ethereum, is a token contract developed on the Bitcoin network. It is designed to run smart contracts on the Bitcoin blockchain, as in Ethereum's ERC-20 standard. BRC-20 is also a new Bitcoin standard, following the existence of Ethereum's ERC, Binance's BRC, and the TRC protocol of the Tron network.
This interest puts pressure on Bitcoin
The BRC-20 standard, which is short for 'Bitcoin Request for Comment', came into our lives with the emergence of a new protocol called Ordinals at the beginning of January. The purpose of the Ordinals protocol stands out as making NFT technology possible by recording data in Satoshis, the smallest unit of Bitcoin, on the Bitcoin blockchain. In other words, many pictures, photos, videos or audio recordings can be both created and exchanged as digital assets.
BRC-20 tokens, which were created using the Ordinals protocol, have also attracted a lot of attention recently. Thanks to this protocol, developers can now write text on the chain, add images and save them. Thus, NFT technology becomes integrated into the Bitcoin blockchain. In addition, thousands of tokens can be produced that can be traded on the Bitcoin blockchain. Likewise, thousands of different tokens have been produced on the Bitcoin blockchain since January. The market value of BRC-20 tokens, many of which are prank tokens, is already close to the $500 million mark. Especially recently, tokens such as PEPE, ORDI, MEME and PIZA are very popular.
In short, the Ordinals protocol is used to produce NFTs on the Bitcoin network. BRC-20 tokens stand out as tokens that allow the exchange of NTFs that can be exchanged and transferred through the Ordinals protocol. BRC-20 tokens have been attracting a lot of attention lately.