Hey, Cryptoverse, DOMO did it!👀
The Unusually Exciting History & Introduction of the BRC-20 Token Standard
Experimentation trumps logic, says Domo.
When inspiration meets elegance, miracles happen, says RedPhoneCrypto.
Inspired by the Sats Names namespace on Bitcoin using ordinals and crypto storyteller RedPhoneCrypto, Domo expanded the dynamic BRC-20 experiment to fungible tokens.
But Domo also encouraged the BTC community to ‘tinker with standard designs and optimizations’ to reach a general consensus on best practices.
Yes, the ‘terminally on-chain, Dune wizard, Alf bot’ Domo’s March 9 Twitter thread has sparked a fun-filled experiment that has taken the Cryptoverse by storm. Today, the anonymous BRC-20 ecosystem developer’s tweet of a lifetime has created history with over $750 million in market capitalization (MCAP)!
If you haven’t been living in the dense Amazon rainforest or lurking in the oblivion of Elon Musk’s Martian expeditions, you would have already heard about the BRC-20, or the Bitcoin Request for Comment 20, universe.
BRC-20: The Idea, Functionality, Operations, and Working
Originally, it was the November 2021 Taproot Upgrade of Bitcoin that paved the way for ordinal inscriptions, and subsequently for the 14,000 BRC-20 tokens. The first token contract deployed was for the “ordi” token having a 1,000 tokens per mint limit, with 21,000,000 total tokens.
Just when Redphonecrypto began wondering as to who would create a “BRC-20”-like standard to allow tokens on ordinals, ‘it happened,’ as Domo struck just the right chord.
Then, a miracle happened as the historical event involving two users initiating the first PEPE trade on record via the BRC-20 tokens occurred.
The new BRC-20 Bitcoin (BTC) ecosystem has since been stealing the DeFi (decentralized finance) headlines for quite a while now. If the digital BRC-20 content is leaving you clueless as to where to begin and how to benefit from it, this guide shall explore the BRC-20 DeFi Chain inside-out to get the numbers rolling.
The underlying idea that Domo had in mind revolved around experimenting if ordinal theory can enable fungibility on BTC by:
The functionality activities in combination enables deployment, buying, and selling of tokens:
- Creating a BRC-20 with the deploy function.
- Mint BRC-20s with the mint function.
- Transfer BRC-20s with the transfer function.
In Domo’s own words, BRC-20 is a ‘fun experimental standard’ that shows off-chain balance states can be created with inscriptions. Domo went a step further to allow anyone to deploy, mint, or transfer using ordinal inscriptions with the ‘first is first’ rule applicable.
BRC-20 tokens use JSON (JavaScript Object Notation) ordinals for simple token contracts to create and transfer new tokens. The Ordinals protocol numbers satoshis to enable users to attach additional data to satoshis via the “inscription” process.
As of now, the BRC-20 token standard enables creating a BRC-20 token having a functional deployment, BRC-20 tokens’ minting with the mint function, and a transfer of the BRC-20 tokens.
What are Bitcoin Ordinals?
- Ordinals = NFTs on Bitcoin.
Data inscription into particular satoshis in Bitcoin happens through Ordinals via a logical ordering system (of ordinal theory). This is done to allot a unique number to satoshis to inscribe arbitrary data (images, video, audio, text, or applications) into satoshis. Ordinals provide rules and specifications to create and manage the tokens. Ordinal-enabled NFTs (Non-Fungible Tokens) do not need Layer-2 (L2) solutions and operate independent of Bitcoin protocol changes.
What is UniSat?
Unisat is an Ordinal wallet that deployed tooling for the BRC-20 standard, leading to the minting of the 21,000,000 ordi tokens in under 18 hours.
- How to Import Ordinalswallet into UniSat Wallet via WIF Private Key
Why install UniSat Wallet?
UniSat Wallet is 100% open-source, non-custodial, and lightweight wallet that does not require running a full node, displays unconfirmed NFTs, and can be changed instantly. You can interact with the UniSat web application, and receive, store, and send (BRC-20) NFTs instantly with a UniSat wallet. It will soon support the Lightning Network. Install UniSat Wallet today.
Buy, Sell, Mint, BRC-20 Tokens via UniSat
Buy BRC-20 Tokens
To buy BRC-20 tokens, visit the UniSat Marketplace, and search and select the token of choice from the drop-down menu in the ‘ordi’ button in the top-left corner. After selection, you can view particular (recent) orders of that token.
To buy a token, simply click on the ‘Buy’ button, confirm, and sign to initiate the transaction. Check the ‘My Assets’ section to check your token balance.
Sell BRC-20 Tokens
To sell the BRC-20 token, you can list your token by clicking on ‘List’ from the ‘My Assets’ drop-down menu against the asset you wish to sell. Upon doing so, a window would appear wherein you will need to click on the ‘Inscribe Transfer’ button and fill the token amount to sell. Then click on the ‘Pay & Inscribe’ button, to pay the transaction fee.
Mint BRC-20 Tokens
To mint new tokens recently inscribed on the Bitcoin blockchain, visit the UniSat Marketplace and click on the ‘() brc-20’ button. You will get a full token list which you can accordingly filter to view ‘All,’ ‘In-progress,’ and ‘Completed.’ Click on the In-progress tab to view the tokens open for minting.
Inscribing a BRC-20 token is possible via clicking on the Inscribe Tab, then clicking the BRC-20 button; fill in the four letter Ticker, total supply details, and the limit per mint. Then click on deploy.
Once this is done, the tokens can be minted by anybody by visiting the In-progress tab, clicking on the token of interest, and then selecting the ‘Mint Directly’ button on the top-right corner. Enter the Tick, Amount, and slide the Mint frequency slider button to mint multiple times; click Next to view the transactions and confirm, provide the address, and click on Submit & Pay Invoice.
You can pay with BTC, UniSat Wallet, or MixPay. Go on to Sign the transactions to conclude the transaction. Select the Network Fee: Economy, Normal, or Custom. You can view your tokens on the My Assets tab.
UniSat Points
Buying or selling BRC-20 tokens requires UniSat points, which can be earned by doing tasks on the UniSat.io web application. Completing one activity function earns you one UniSat point. You can fully use the BRC-20 Marketplace for buying and selling with UniSat points
Risks, Pros & Cons of BRC-20
BRC-20 tokens are said to be fungible but are actually semi-fungible as exchanging them is limited to set increments. Creating a mint JSON NFT defining the minting amount is a must to mint BRC-20 tokens. Competing with others via a priority gas auction is also required for finalizing the mint. Exchanging a BRC-20 token natively on Bitcoin requires a seller to create transfer NFTs to sell predefined token batches.
A buyer waiting to buy a set amount of BRC-20 tokens needs to locate a seller selling a matching token amount. Lastly, determining a wallet’s BRC-20 balance requires a user to trust an off-chain indexer operating a ruleset interpreting the inscriptions.
Lightning Labs’ Solution for BRC-20’s Minting Issues
The infrastructure firm of the Lightning Network, Lightning Labs has just introduced the Taproot Assets V2.0 Protocol daemon, a scalable protocol to issue assets on Bitcoin and Lightning, that operates “maximally off-chain.” The new protocol offers a set of core features for developers wanting to issue, send, receive, and discover assets on the Bitcoin blockchain. Its aim is to “bitcoinize the dollar in a chain-efficient manner!”
Lastly, in DOMO’s own words, the “Taproot Assets Protocol is a “better solution” for minting new assets on Bitcoin, unlike the JSON, as it enables “fast and cheap transactions.”
