Understanding BRC-20: Hope or Hype

Abstract

Bitcoin Request for Comment 20 (BRC-20) token mania was a key storyline in the middle of 2023. Setting it apart from conventional Ethereum request for comments (ERC)-20 token standards on Ethereum, BRC-20 introduces nonfungibility to Bitcoin through an editable field in each satoshi (0.00000001 Bitcoin, the smallest unit), making them unique. In this article, we pioneer the exploration of this concept, covering its intricate mechanisms, features, and state-of-the-art applications. By analyzing the multidimensional data spanning over months with factual investigations, we conservatively comment that while BRC-20 expands Bitcoin’s functionality and applicability, it may still not match Ethereum’s abundance of decentralized applications and similar ecosystems.