Understanding BRC 20 Token Development

The BRC-20 token standard is a widely recognized and utilized standard to facilitate the creation and seamless transfer of fungible tokens on the Bitcoin blockchain. It plays a pivotal role in cryptocurrency development and provides a reliable framework for fungible tokens. In this comprehensive guide, we will explore this token standard and its development.

BRC-20 Token Standard

The BRC-20 token standard, also known as Bitcoin Request for Comment-20, is a fungible token standard designed for the Bitcoin blockchain. An anonymous Bitcoin software developer who goes by the name Domo on Twitter created this standard. The inspiration for BRC-20 tokens comes from the ERC-20 token standard, which introduced fungible tokens to the Web3 ecosystem.

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Development

BRC-20 token development incorporates advanced mechanisms that are important to understand for a better comprehension of these tokens. These tokens are built using the Ordinals protocol, which leverages a feature introduced in Bitcoin's 2021 Taproot upgrade. It's worth noting that the Ordinals protocol has gained attention through ordinal inscriptions, which are akin to Bitcoin's version of non-fungible tokens (NFTs).

To facilitate the development of BRC-20 tokens, JSON (JavaScript Object Notation) programming is employed. This programming language is utilized for deploying, minting, and transferring the tokens, essentially serving as the token contract. It's important to mention that these contracts are not as complex as smart contracts, which are extensively modifiable for various business purposes. However, due to the open-source nature of BRC-20 token development, significant advancements and improvements are constantly within reach.

Defining Requirements: The first step in any BRC-20 token development campaign is to establish clear and specific long-term goals. Expert developers who provide BRC-20 token development services can assist in understanding and defining the unique needs of the token project.
JSON Coding: Once the project owners' requirements are understood, developers proceed to code the JSON object. This object contains essential information necessary for creating BRC-20 tokens, including the Token Identifier (Name), Token Symbol, Decimals, Maximum Token Supply, Operation Type, Initial Monetary Value, and Limit Per Mint.
BRC-20 Token Creation: At this stage, the JSON object, containing all the required information, is transferred to a Bitcoin wallet that is compatible with the Taproot/Segwit upgrade. The object is then sent to the designated wallet, resulting in the creation of an inscription.
The Result: The resulting inscription is stored on a satoshi, which is the smallest unit of Bitcoin. It is worth noting that one Bitcoin (BTC) consists of 100,000,000 Satoshis.