If you are a part of the crypto community, then you would have heard about the launch of BRC20 Token, an experimental token standard that holds huge expectations of cryptopreneurs. If you are intrigued to know about it, then this blog will break down all about BRC20 tokens and how they can revolutionize the crypto industry.
What Are BRC20 Tokens?
BRC standards for Bitcoin Request For Comment. BRC-20 token standard is a Bitcoin blockchain framework that enables developers to create and transfer fungible tokens through the ordinal protocol. This token standard was launched on March 2023 by an unknown analyst known as Domo. Despite being an experimental standard, BRC20 is based on Bitcoin’s network, the most well-established and secured blockchain. Hence BRC20 has gained massive popularity among the huge crypto fan base.
Comparison Between BRC20 Token And ERC20 Token
Since the BRC20 token standard rhymes with the popular ERC20 token standard, a question is revolving among crypto enthusiasts whether BRC20 works similarly to ERC20 tokens. But the straight answer to that is both these token standards are not the same. The major differences between BRC20 tokens and ERC20 tokens are listed below.
- Blockchain – The BRC20 tokens are built on Bitcoin's blockchain network, whereas the popular ERC20 tokens are created on the Ethereum blockchain.
- Functionality – BRC20 tokens are created through Ordinal Inscriptions, but the ERC20 tokens are created through Smart Contracts.
- Consensus Mechanism – BRC20 tokens work on the Proof of Work mechanism and ERC20 tokens work on the Proof Of Stake mechanism
- Gas Fees – The gas fees in BRC20 token transactions are comparatively lesser than ERC20 tokens.
To know more, reach out to the leading Token Development Company which is specialized in BRC20 Token Development and ERC20 Token Development.
