With the introduction of BRC-20, Bitcoin has obtained broader functionality outgrowing the mere medium of storage and exchange. BRC-20 tokens are a big step toward the adaptability of Bitcoin and Bitcoin blockchain for innovative blockchain ecosystems. It’s worth exploring what the BRC-20 standard is and how it can be useful.
BRC-20 is an innovative fungible token standard allowing custom JSON scripts embedded directly into Bitcoin's smallest unit - satoshi. Such a mechanism enables BRC-20 tokens to be easily exchanged, traded, and used in applications built on the Bitcoin blockchain. Of course, the BRC-20 standard is in its experimental phase but with time it can be used to generate new layers of functionality, including dApp, DeFi, and NFT. etc, and tenfold expand the utility of the Bitcoin blockchain.
At first glance, one may think that BRC-20 is similar to ERC-20 just for Bitcoin. But if we take into consideration that Bitcoin and Ethereum blockchains have different mechanisms of block verification and are built on different backgrounds, the standards should also differ.
The main three differences between BRC-20 and ERC-20 tokens are the following:
ERC-20 tokens operation and creation relies on smart contracts and BRC-20 tokens feature JSON inscriptions on satoshis, the smallest Bitcoin fragment.
BRC-20 tokens are not native to the Bitcoin blockchain but are used to operate. ERC-20 tokens are native to Ethereum and are used to operate.
BRC-20 tokens operate on Bitcoin in parallel, making a network with its own settings. While all BRC-20 transactions can be accepted on the Bitcoin blockchain, some may be rejected if they don’t meet the conditions inscribed by the BRC-20 protocol.
Spatium crypto wallet is scaling Bitcoin on L1 and added BRC-20 support to Spatium Wallet App.
Get the Spatium Wallet App and enjoy how user-friendly and convenient it is. Protect your crypto assets with MPC cryptography and save on fees while sending transactions to blockchains. Moreover, soon Spatium will enable peer-to-peer crypto swaps when you don’t need to go to centralized exchanges to swap cryptocurrencies. Stay tuned!
Spatium Bitcoin MPC wallet is easy to use and free to download. It’s available on Android and iOS devices.
Try Spatium Feeless Bitcoin Wallet and the feature allowing you to pay a network fee in the currency you send instead of native chain tokens (currently available for USDC on Ethereum. More chains and tokens will be added soon).
Keep a close eye on Spatium Feeless Bitcoin wallet which is building DeFi on Bitcoin and actively working toward the introduction of feeless crypto transactions and cheapest ever peer-to-peer crypto swaps without escrow.
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