BRC-20: The new tokens that can be issued in Bitcoin.

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Bitcoin is the most popular and oldest Cryptocurrency in the world, but it is also a network that allows the creation of other digital assets. BRC-20 are an example of these assets, which use the “Ordinals” protocol to issue and transfer fungible tokens on the Bitcoin network. In this article we will explain what BRC-20 are, how they work, what advantages they offer and what opportunities present for the future of Cryptocurrencies.

What are BRC-20?

BRC-20 are experimental tokens that are created on the Bitcoin network using a JSON data entry. JSON is a text format used to represent objects, arrays, numbers, strings, booleans and null values. BRC-20s use this format to associate a text or monetary symbol with a Bitcoin transaction, without the need to use smart contracts.

BRC-20 is also defined as a token standard, that is, a set of rules that specify how tokens are created, transferred and stored. The BRC-20 standard supports the “Ordinals” protocol, which is a data layer built on top of the Bitcoin network that enables the creation of non-fungible tokens (NFTs) and other types of digital assets.

Click to tweet: Do you know what BRC-20 are and how they can be issued in Bitcoin? Discover the advantages and opportunities of these tokens in this article.

How do BRC-20s work?

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BRC-20s work similarly to ERC-20s, which are the most common tokens issued on the Ethereum network. However, there are some important differences to keep in mind:

  • BRC-20s are created by a Bitcoin transaction that includes a JSON data field with the token information such as name, token, amount and recipient. ERC-20s are created using a smart contract that is deployed on the Ethereum network and contains the logic of the token.
  • BRC-20s are transferred via a Bitcoin transaction that includes a JSON data field with token information such as sender, recipient and amount. ERC-20s are transferred via a call to the smart contract that manages the token, which checks the balance and updates the status.
  • BRC-20s are stored in a Bitcoin address that can receive and send both Bitcoins and Tokens. ERC-20s are stored in an Ethereum address that can receive and send both Ethers and Tokens.

What advantages do the BRC-20 offer?

BRC-20s offer a number of advantages that make them more attractive and convenient than other ways of issuing and transferring tokens, especially in the context of 2024, where the demand and supply of Crypto assets is expected to increase considerably. Some of these advantages are:

  • Greater security and reliability: Using the Bitcoin network, which is the most secure and robust in the world, BRC-20s benefit from its resistance to censorship, manipulation and fraud. Furthermore, by not depending on smart contracts, BRC-20 avoids the risks of errors, vulnerabilities and attacks that can affect ERC-20.
  • Greater simplicity and efficiency: By using a standard text format such as JSON, BRC-20s simplify the process of creating and transferring tokens, reducing complexity and cost. Additionally, by using a single address to receive and send both Bitcoins and Tokens, BRC-20s make it easier to manage and use digital assets.
  • Greater compatibility and interoperability: Using the Ordinals protocol, which is compatible with other token standards such as ERC-721 and ERC-1155, BRC-20s enable the creation and exchange of non-fungible tokens (NFTs) and other types of digital assets on the Bitcoin network. Furthermore, by using a Bitcoin address, which is compatible with other networks such as Ethereum and Binance Smart Chain, BRC-20s allow the transfer and use of tokens between different platforms.

What opportunities do the BRC-20 present?

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The BRC-20 presents a number of opportunities that open up new possibilities for the development and adoption of Cryptocurrencies, both by investors and everyday users. Some of these opportunities are:

  • Greater innovation and diversification: By enabling the creation of fungible tokens on the Bitcoin network, BRC-20 drives innovation and diversification of the Cryptocurrency ecosystem, offering more options and opportunities for creators, developers and users. BRC-20 can represent everything from stable coins to governance tokens, utility tokens, loyalty tokens, reward tokens and others.
  • Greater inclusion and participation: By facilitating the transfer of fungible tokens on the Bitcoin network, BRC-20 promotes the inclusion and participation of more people in the world of Cryptocurrencies, offering more benefits and advantages for buyers, sellers and users. The BRC-20 can facilitate everything from access to financial services, to participation in community projects, to support for social causes, among others.


The BRC-20s are one of the latest innovations of the “Ordinals” protocol and have generated a lot of interest and expectation in the world of Cryptocurrencies. BRC-20 are fungible tokens that are created and transferred on the Bitcoin network, using a JSON text format. The BRC-20s offer advantages such as greater security, simplicity, compatibility and interoperability, and present opportunities such as greater innovation, diversification, inclusion and participation. BRC-20 are, without a doubt, one of the best options for buying and selling Crypto assets in 2024.

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